Government intervention in the development of mineral resources

Government intervention in the market mainly from people’s understanding of market failure.The market mechanism-classical economics, as a "visible hand" of the market mechanism is the most efficient and dynamic economic activities in the economic operation mechanism and the allocation of resources means that it has any other mechanisms and means of dominant functions can not be replaced.However, the market because of its mineral resources, the properties of public goods and produce in the development process, such as environmental pollution, waste discharges and ecological destruction and a series of externalities, and monopoly and incomplete information, and so on, the market mechanism can not effectively operate, mineral resources can not achieve"Pareto optimal"state, triggering mineral resources market failure.Mineral resources market failure to provide the necessary prerequisite for government intervention.Based on the reasons for government intervention and market failure and performance of a simple analysis, China’s government intervention on the development of mineral resources should be divided ① correct the functions of government and the market gradually reduce government intervention, ② to establish an effective framework for monitoring the government’s system of Enlightenment and recommendations.