Finally , this chapter provides - a basic framework within which we discuss the optimal role of the government in a general context. We invoke the oriental philosophy of Taoism ' being natural without coercion ' - and the Hayekian philosophy of interpreting market competition as discovery procedure of the optimal solutions to the resource allocation problems . This chapter concludes that the government 's role should be confined to preserving the spontaneity and endogeneity of the market order and cultivating an economic environment conducive to the proper functioning of the market . In other words , while the government concentrates on determining exogenous variables for the market order , the determination of endogenous variables should be left to the market.