What is supervision?

Regulation refers to the government's management or restriction of economic behavior.

Regulation means that the government formulates (introduces) laws and regulations to restrict it. Regulation, as a specific institutional arrangement, is "the government's management or restriction of economic behavior", and it is the government's intervention in the activities of economic subjects (especially enterprises) with the purpose of correcting and improving the inherent problems of market mechanism under the market economy system.

Regulation is a way of social management, which exists between extreme government ownership and laissez-faire market. When legislators think that market failure occurs, when legislative management tries to form a social force that can bring economic and social satisfactory results, it appears in a society marked by capitalism and market economy.

Significance of supervision

1, regulation can make up for the defects of market failure.

In market economy, the spontaneous function of market mechanism may lead to uneven distribution of resources and market failure in some fields. Supervision can protect public interests and market order by restricting, supervising and regulating certain industries or activities, and avoid the adverse effects caused by market failure.

2. Supervision can promote economic development and innovation.

Regulation can promote the development and innovation of related industries by supporting, encouraging and protecting certain industries or activities. For example, the government can promote technological innovation and industrial upgrading through supporting policies for high-tech industries.

3. Control can improve the level of social welfare.

By implementing a series of regulatory measures, the government can protect consumers' rights and interests, improve product quality and service level, and increase public welfare level. For example, the government can ensure the health and safety of consumers by implementing food safety standards and market access systems.

Refer to Baidu Encyclopedia-Provisions for the above contents.