These are goods that can non be provided by the private sector but are really indispensable to the development of a country’s economic system. They are normally really expensive projects with fewer returns or take a long clip for the investors to reimburse their money back. This makes them to be less attractive to the private sector investors who are chiefly driven by the net income motivation and would therefore be unwilling to put their resources in such undertakings.
The authorities has the authorization of supplying such goods that are really indispensable which have indivisible cost with a fringy cost of nothing ( Kaul. 2006 ) . It is non possible to practically bear down the populace for the utilizing such goods. The authorities can therefore. merely cod revenue enhancements from the populace to enable it supply public goods. Public goods in this class include roads and province security provided by the police officers who are paid by the authorities.
There are other public goods that even though. they have high returns and the private sector can be able to put in them. they can non be allowed to make so by the authorities due to the sum of hazard involved. Manufacturing or trading of arms is a hazardous activity that no authorities can be willing to let it to be done by the private sector as it would set the populace into a batch of hazard since the private sector investors in such an industry would largely be guided by the net income motivation and non whether or non ammos will be on the incorrect custodies or the right 1s ( Kaul. 2006 ) .
The public goods are really of import to everyone. including the private investors who shy off from puting their resources in such ventures. It is this importance that makes the authorities to be under duty of supplying such goods to its people since they are really indispensable and it is merely the authorities that is best placed to supply them ( Kaul. 2006 ) . Mention: Kaul. I. ( 2006 ) : What is a public good? Retrieved on 17th June 2009 from. hypertext transfer protocol: //mondediplo. com/2000/06/15publicgood.