higher unemployment among uneducated and poor are possible consequences of minimum wage while deterioration of residential buildings might be caused by rent ceiling and subsequent lack of incentive for landlords to provide the best services possible. Administration costs Enforcement of laws through legal system and tax collection demand considerable costs. Excessive bureaucracy can lead to inefficiency and public sector might face principal-agent problem. Unintended consequences Government intervention may result in unpredictable outcomes. Average speed on a particular road with traffic calming measures might increase (people would drive faster) as drivers may speed up between warning signs and speed bumps. State monopolies Most government providers operate as monopolies (e.g. post offices). Their status is sometimes guaranteed by the government, protecting them from potential competition. Furthermore, as opposed to private monopolies, the thread of bankruptcy is eliminated, as these companies are backed by government money. The companies are thus not facing many efficiency pressures which would push them towards cost minimisation - causing a social inefficiency. There are still some existing efficiency pressures on state monopoly managers. They mostly come from the possibility of their political masters being voted out of office. These pressures are however unlikely to be as effective as market pressures, the reasons being that the elections are held quite infrequently and even their results are often fairly independent on the efficiency of state monopolies. Corruption The private utilization of public resources by the government officials. Corruption can take many forms, ranging from direct misappropriation of government funds to the collection of bribes in exchange for public policies. EU Fisheries Policy A leading example of governmental failure can be seen with the consequences of the European Union's Common Fisheries Policy (CFP). Set up to counteract a concern of balancing natural marine resources with commercial profiteering, the CFP has in turn created political upheaval. Overcoming government failure When a country gets into this kind of complicated situation it is not possible to reverse it right away. However, there are some arrangements that the government could do, to try to overcome it step by step. For example: The government could assign itself some future goals, and also try to fulfil them Competitive Tendering – making good offers to private and public sector which may arise on into competition between them, which is good for moving forward Public & Private Partnerships – involving private professional to make decisions to cut less necessary