Strategy Survival Guide

For further material, see the Rationale for Government Intervention in Delivering Public Services
Rationale for Government intervention
In Practice 1: PIU Resource Productivity Project
Throughout the resource productivity report, Resource Productivity: Making More with Less (PIU,
2001) there are examples of the above approach as a justification for Government activity. Examples
include:
• Barriers to progress in improving resource productivity: section 1.4.1
• Externalities and other barriers associated with innovation: section 2.4
• Failure to properly take into account the full impacts of economic decision-making: section 3.4
• Long-term uncertainty: section 4.2.1
However, the report also highlights the fact that there is a lot that businesses and households could and
should be doing to improve resource productivity – and where this is the case, Government’s role
should be relatively "light touch".
Rationale for Government intervention
In Practice 2: PIU Lending Support Project
Section 3 of the report Lending Support: Modernising the Government's use of loans (PIU 2002)
proposed criteria for assessing the rationale for Government intervention.
Strategy Survival Guide – Strategy Skills
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