In mainstream public economics it is tacitly implied that all facets of the public sector can be managed efficiently and fairly by any type of government. By contrast, this book argues that only a democratic government that can meet the conditions of legitimacy and economic efficiency that is consistent with freedom and social justice.

The book outlines the fundamental elements and methods of public economics and exposes the constraints of standard public economics in relation to the legitimacy of government. The main goal of the book is to draw a clear demarcation line between democratic states and undemocratic states and to spell out clearly the essential place of the state in the economy. It is argued that alongside adherence to the rule of law, one of the core functions of a democratic state is its economic function. Multifaceted economic obligations are the indispensable commitment of a democratic state. Without these fundamental obligations a state cannot fulfil its requirements for being classified as democratic. As the book makes clear, there is an inextricable linkage between the democratic state, democracy, rule of law, equity and economic efficiency.

This book makes a significant contribution to the field of public economics. It provides invaluable reading for professionals working in the public sector and for scholars and readers of public economics, political economy, public finance, public policy, public administration and government studies.