Lesson 36 The cost of government
If a nation is essentially disunited, it is left to the government to hold it together. This increas
es the expense of government, and reduces correspondingly the amount of economic resources that coul
d be used for developing the country. And it should not be forgotten how small those resources are i
n a poor and backward country. Where the cost of government is high, resources for development are c
orrespondingly low.
This may be illustrated by comparing the position of a nation with that of a private business enterp
rise. An enterprise has to incur certain costs and expenses in order to stay in business. For our pu
rposes, we are concerned only with one kind of cost -- the cost of managing and administering the bu
siness. Such administrative overheads in a business are analogous to the cost of government in a nat
ion. The administrative overheads of a business are low to the extent that everyone working in the b
usiness can be trusted to behave in a way that best promotes the interests of the firm. If they can
each be trusted to take such responsibilities. and to exercise such initiative as falls within their
sphere, then administrative overheads will be low. It will be low because it will be necessary to h
ave only one man looking after each job, then the business will require armies of administrators, ch
eckers, and foremen and administrative overheads will rise correspondingly. As administrative overhe
ads rise, so the earnings of the business after meeting he expense of administration, will fall; and
the business will have less money to distribute as dividends or invest directly in its future progr
ess and development.
It is precisely the same with a nation. To the extent that the people can be relied upon to behave i
n a loyal and responsible manner, the government does not require armies of police and civil servant
s to keep them in order. But if a nation is disunited, the government cannot be sure that the action
s of the people will be in the interests of the nation; and it will have to watch, check, and contro
l the people accordingly. A disunited nation therefore has to incur unduly high costs of government.
RAYMOND FROST The Backward Society