INTRODUCTION: Who is superior- public sector or private sector? This has been an eternal debate. It has gained more prominence after the wave of privatizations since early 1980s, in which the central motive was ideological rather than financial efficiency (Cook & Kirkpatrick, 1988). Privatization, therefore, has its roots deeply entrenched in the ideological foundations of the neo-right that perceives market as consistently and wholly benign (Martin, 1993), and finds the private sector integrally superior to the public sector. The last two decades have seen a wave of economic improvements designed to decrease the role of the public sector and increase the role of the market while the boundaries of the private sector are rather clearly described. …show more content…
The interface between the two actors could become a provincial development tool as long as the state of a developing country, especially, is resolute to come up with proactive activities that bring economic alteration and further on, a position in the global economy. These could be achieved by endorsing public-private alliances, according to local conditions. The access of individuals to basic services like primary education, health, water resources, energy represents an important mean in order to eliminate poverty and record progress of the community. There are many public and private sectors here in Bangladesh. These sectors are consistent with each other. This relation can either be positive or be negative. The positive relation is openly known as partnership relation and the negative can certainly be called competitive relation. So both types of relations do exit between public and private sectors in …show more content…
To do things together, public sectors and private sectors are used to define the two main types of business industries within an economy. They may offer similar services on some levels or not. The two differ from one another on a variety of issues, including aim and tenure. The largest difference between them is that the public sector is owned and worked by the government, while the private sector is dominated by private business operators. One of the easiest ways to tell the difference between a public sector and private sector organization is to look at who is in charge. In a public sector organization, employees, administrators, and managers all work for the government. The company or organization is not owned by a corporation or a private owner, but rather by the government of the area. Private sector organizations, on the other hand, are operated by private citizens and may answer to a board of managers, owning partnership, or single owner. Employees in private sector jobs are employed by the
Municipal control or an alternative delivery method? This is the question that has intrigued all levels of local government and created intense debates between taxpayers across municipalities. The services that municipalities provide are often vital to the existence of a local area. The issues of accountability, cost savings, quality of service and democracy often arise when choosing the best options to deliver services to a municipal area. In recent years the concepts of privatization, alternative service delivery and public-private partnerships are often promoted as ways cut down on overburdened annual city budgets and promote a higher quality of service to citizens. Municipalities have historically always provided basic services such as fire protection, water purification/treatment and recreational facilities. However, would private companies or another municipality be able to better deliver the same services more efficiently or at a lower cost? The city or town often provides a political grass roots approach to most local problems. Municipalities are better positioned and have a wider scope to provide services to their constituents in order to ensure quality of service that does not erode accountability and transparency, or drive the municipality deeper into debt.
Scotland’s economy is mixed market, which is where production is shared between both the private and public sector. The private sector is the part of the economy that is not controlled by the government, and is instead run by individuals and companies for profit. It consists of the businesses that are for profit, and are not owned / operated by the government whereas the public sector is the part of the economy that is controlled by the government, such as the police, primary education, public transit, healthcare etc, as well as services that benefit all of society, such as public education.
Privatization of governmental functions has a direct relationship with the number of contract employees in government and an inverse relationship with the number of civil servants. As privatization has become more acceptable, contract employees are being hired to do the jobs, thus, replacing civil servants.
The government should play a minimal role in determining the condition of the economy. The government does have an important place in areas such as providing a legal framework, preventing abuses of the market, and to sustain national defense. However, extensive government intervention will hinder the efficient operation of the market in the determination of pr...
In order to infuse greater degree of efficiency in their working and to bring about more accountability in their performance, the extent of disinvestment differed for each of these 3 categories. The Government decided to disinvest up to 74% and retain only a maximum of 26% in Non - Core Industries, This encouraged private participation in public sector management, infusing efficiency into the enterprise working.
In micro-economics market failure is characterized by resource misallocation and subsequent Pareto inefficiency. Just as the invisible hand falters, so is the case that the unregulated markets are incapable of solving all economic problems. In laissez-faire economy, market models mainly monopolistic, perfect competition and oligopoly are expected to efficiently allocate resources for the “welfare benefit” of the society. However individualistic and selfish private interests divert the public benefits thereby prompting government intervention to correct the imperfection which may lead to disastrous economic impact. Although corrective intervention policies by government may not necessarily address the underlying imperfection induced by private sector inefficiency, it still becomes a necessary remedy to benefit the wider public if private entities are not allocating efficiency. Furthermore, as the largest contributor of the Gross Domestic Product, poor and untimely corrective measures could signal the failure of both the private and public interests. Effectiveness of the policies and mechanisms designed by the state in market intervention are fundamental in correcting any perceived market failure. Intervention however does not guarantee effective remedies expected by the economy and could lead to deeper market failures if the regulations “crowd out” the private sector but is the viable approach to address market failure.
Two different economic systems have been tried in the world during the twentieth century. The command economy and the market economy have both been tried by different nations in the world. A command economy is basically socialism where the government owns everything, producing and distributing goods and services by central planning (Perreault, Cannon, McCarthy, p.12). Market economies consistently outperformed command economies. Distribution and production are determined by millions of people buying goods and services desired. The market tries to satisfy the customer in exchange for a profit. Market economies are now recognized as the most desirable.
Public services like railways, electricity, oil and natural gas are the example of industries that should not be left to the private. These industries are exist meant to provide public services to the society and not to gain profits. If they were run by the private sector, for sure that the public will not get the cheap public services since the main motive of the private sector is to gain
Public Administration and business administration can be described as being two different faces of the same discipline. There are several areas where a comparison between the two can be made, the most apparent being efficiency. Attention to profit and the bottom line is more the area of business administration, the less human focused of the two. Business administration is more dependent on other corporations and uses other companies to help deliver its product. Public Administration, on the other hand, is somewhat harder to define, it is interdependent and is motivated by the common good rather than by profit.
ECONOMY: Economy as the first pillar mainly concerns with the allocation of scarce resources for optimum development. It involves the combination of available resources in their right proportions for the provision of goods and services. It is the careful use of resources and it involves the best combination of resources for optimum result. In public administration it is expected that quality public service be provided at the least possible cost. Public officials therefore must figure out how to provide services required by the people at the lowest cost through cost saving mechanisms while still maintaining quality. The employment of economics in the public sector ensures that resource usage is optimized and not wasted as usually happens in the public sector. Another dimension is to look at economy in terms of the deployment of resources in order to achieve the optimal benefit from them.
Despite becoming the second fastest growing and the fourth largest economy of the world, India continues to face large gaps in the demand and supply of essential social and economic infrastructure and services. Rapidly growing economy, increased industrial activity, burgeoning population pressure, and all round economic and social development have led to greater demand for better quality services in Education and Healthcare system. Many analysts argue that the best way to improve service provision is to change the way in which governments administer them in India. For those who believe in neo liberal ideology, privatization is the only way to solve this problem. According to the World Bank, the key task is to ‘manage infrastructure like a business, and not
Ohemeng, Frank, L.K. and Leone, Robert P. “Should Public Sector be RUN like a Business.” Approaching Public Administration. Edmond Montgomery Publications Limited, (2011), P. 1-362.
Ensuring equity of acess, meeting social objectives and providing public goods.were considered the main reasons why the public sector provided goods. Why governments intervened in the market was due mainly to charactoristics of the market place. If the market place was to function efficiently, several conditions needed to exsist, including,
Public and Private Law – Public law is the framework of guidelines defining the relationship between the government and individuals, and private law is the guidelines through which individuals or groups interact with one another. E.g. public law has subdivisions that include constitutional, administrative, and criminal law, whereas private law would cover such areas as contracts and properties.
Public sector employees are the people who are responsible for running the daily operations of public administration. Without them, all the institutions in the public administration will stop functioning because public sector employees are an important input to the services provided by the public administration. However, public sector employees do not work in the public sector free of charge. Since economically public sector employees themselves are labor force in the market, they need to be paid and compensated as they are sacrificing their time and offering effort to ensure that the whole p...