Collaborative Dynamics between Government and Society in the Three-Sector Economy toward Equitable and Sustainable Development

Abstract

The three-sector economy consisting of households, firms, and the government constitutes a vital foundation for sustaining national economic stability and promoting long-term growth. The synergy between the government as a regulator and society as an active economic participant plays a central role in achieving balanced and sustainable development. Through well-coordinated fiscal and monetary policies, the government seeks to maintain macroeconomic equilibrium, while society contributes dynamically as consumers, producers, and social controllers in the overall economic process. This literature review explores the interaction among the three sectors and their implications for sustainable economic progress. The analysis reveals that adaptive collaboration between governmental policies and civic participation significantly enhances inclusive and efficient economic growth. Furthermore, coherent coordination between fiscal and monetary strategies reinforces public trust, strengthens institutional credibility, and fosters socioeconomic resilience. Hence, maintaining an equitable balance between governmental functions and community engagement emerges as an essential condition for achieving sustainable and equitable economic welfare.