In sum, the debate on the role of the government in economic development centered around the issue of market failure versus government failure. Of course, market failure generally reflects the failure of institutions, another form of governmental failure – this time the failure lies in the government’s inability to set up the right institutions or, in other words, the rules of the game in the economy. Therefore, market failure on its own cannot be considered as an automatic justification for direct government intervention. Rather, the government should try to introduce ‘right’ institutions to provide an optimal environment for better economic performance. Furthermore, in most cases of apparent market failures, it should not go unnoticed that government regulation or its practices of preferential treatment usually turn out to be the major causes of those failures.