In a Liberal Democracy, there are social and economic checks and balances on the activities of government. Characterized by the active existence and activities of a large number of social and economic associations/ interest groups of the people which enjoy a large amount of autonomy, these groups play a vital role in the political process. The bulk of economic decisions in liberal democracy is not taken by the government alone. The interest groups play a vital role in it. The duty of the government is to harmonize and coordinate social and economic relations and to impose and coerce only in the last resort.
