In a nut shell, smart cities carry a vision of an urban space that is meticulously planned, technologically integrated, ecologically friendly, and to attract more investments in technology and physical infrastructure. It is technology business driven boasting of “smart communities.” Reinventing the government movement also boasts of its ability to give the government cost effectiveness, more professional and smarter government, and more dynamic government. The impact has been, a dysfunctional government, a bankrupt government, poor capacity government, wide spread corruption scandals, social and economic exclusion and marginalization. Employment becomes scarce and more and more labor oriented – education and knowledge expertise are considered irrelevant as services are being emphasized more on the use of technology or technology friendly without human provision or without human interaction. Greater reliance on technology causes the disappearing of human values. Though 31 cities of seven countries have adopted smart city concept, the establishment of this type of cities bring a new challenge for the government in terms of public financing, politics, social and economic policies, urban planning and provision, and its impact on human population. It also brings a new challenge for the government in terms of its roles and functions, and the impact of this establishment on the mental, attitude, and behavior of the society. Although the smart cities concept is meant for technologically the cities, but similar to the term quality of life, the term of smart cities encompasses different aspects of lives. This paper will discuss the roles and functions of the government in theory and its application, the impact of the development of the smart cities on public finance, the economic, social and welfare the humanity, and the different aspects of lives that contribute to the establishment of smart communities
