Hayek Government Functions Theory

Hayek advocated individual freedom, advocating free competition and market order. In the procession of opposing the planned economy and excessive interference strongly, he has made tremendous contributions to the transference and development of modern liberalism. The theory about government functions occupies extremely important position in his whole liberalism theories. Hayek suggests that the knowledge is scattered, incomplete, and sometimes conflicting beliefs which different individuals have, and the information of social life is infinite rich and diverse, so it is impossible to exist almighty government. Thorough social justice is very difficult to achieve, and may have caused serious harm to society. Thus, Hayek thinks, in a free society, the duty of the government is limited, limited to enact the rule of law for the normal development of the market economy, in order to protect competition and the private ownership, as well as provide services which market cannot provide or cannot provide fully, ie, establishing the service-oriented government. What's more, the more important is that the government must adhere to two principles in the performance of its functions: First, to ensure that individuals'private domains are not violated; second, not to engage in monopoly, to ensure that competition exists reasonably.This paper tries to card and discuss the theory of the government's functions of Hayek's seriously. On the one hand, we hope to do a more profound discrimination to Hayek's theory, on the other hand, the more important is that I hope to understand further, and solve Chinese current reform of the government's functions and contribute to it modestly. To analyze and discuss Hayek's theory of government functions, and explain the inspiration about Hayek's theory of government functions for China's Reform of government functions, I divide the paper into four parts: First, the origination and development of Hayek's theory of government functions; second, the critics to almighty government; third, Hayek's "small government" theory; fourth, advantage and disadvantage and inspiration to Hayek's theory of functions of the government. By analyzing Hayek's theory of functions of the government, it provides us a theoretical reference to develop a limited government, and build a service-oriented government. At the same time, it helps us understand why we are wrong in the reform of the functions of government, what the government can do on this issue and in the procession of resolving this issue, whether we are almighty. Therefore, researching Hayek's theory of government functions has extremely important theoretical and practical significance. Of course, we can not copy his theory completely, we should view it critically under China's national conditions.