Argue in favour of the need for different forms of government intervention in education and health sectors.

We do understand that education and health care services create both private and social benefits and this is the reason for the existence of both private and public institutions in the education and health service markets.

Expenditures on education and health make substantial long-term impact and they cannot be easily reversed; hence, government intervention is essential.

For instance, once a child is admitted to a school or health care centre where the required services are not provided, before the decision is taken to shift the child to another institution, substantial amount of damage would have been done. Moreover, individual consumers of these services do not have complete information about the quality of services and their costs.

In this situation, the providers of education and health services acquire monopoly power and are involved in exploitation.

The role of government in this situation is to ensure that the private providers of these services adhere to the standards stipulated by the government and charge the correct price.

In a developing country like ours, with a large section of the population living below the poverty line, many of us cannot afford to access basic education and health care facilities.

Moreover, a substantial section of our people cannot afford to reach super specialty health care and higher education.

Basic education and health care is considered as a right of the citizens, then it is essential that the government should provide education and health services free of cost for the deserving citizens and those from the socially oppressed classes.