CHALLENGES OF ESTABLISHING SUSTAINABLE GROWTH IN UZBEKISTAN: MARKET AND GOVERNMENT FAILURES

Abstract

In economics, market failure is a condition in which products and services are distributed inefficiently in a free market. Individual incentives for rational behavior do not lead to rational group outcomes in the event of market failure. To put it another way, each person makes the best option for herself, while the group makes the worst decision. This is sometimes referred to as a steady-state disequilibrium in classical microeconomics, in which the quantity supplied does not equal the quantity required. In the context of public economics, government failure is defined as an economic inefficiency produced by government intervention that would not exist in a truly free market. In this paper, we will discuss about the reasons which causes Market and Government failures in Uzbekistan and the way that government should do to fix these problems.