The Public Sector: The Role Of Public And Private Sectors

1613 Words7 Pages
The private sector, as noted in many forums and literary articles faces a distinctive disadvantage when it comes to dealing with matters of national importance. Notably, these matters include security as a feature, public health and even public schooling (Chaudhary & Sharma, 2011). Differences exist in the formulation of the public and private sectors as cornerstones of the economy. The private sector is more aligned towards the delivery of products and services to the people who can afford at a fee. The public sector on the other hand has a more utilitarian approach. Their delivery of products and services is aligned towards the benefit of everybody in the society. This is where the differences between the two sectors occur. However, it is important to note that no particular economy can prosper without a fundamental composition of the two sectors (Little, 2003). The role that the private sector plays in the contribution of national income of a county is indispensable. The total output from the two sectors contributes directly to the growth of the GDP of a nation. Therefore, due to the importance of the two sectors in an economy, it is vital that those two sectors of the economy operate optimally and in such a manner that allows them to ensure increased levels of output for a country. Each sector therefore has well defined roles to play in ensuring that the economic progress of the country is guaranteed.
This paper examines how the two sectors of the economy interact and how they influence the growth of the GDP and the economy as a whole. The paper looks at the various parameters and avenues where the two sectors interact in a coordinated and combined effort to raise the GDP and the economy of the nation. It also looks at area...

... middle of paper ...

...together to achieve the development goals of an economy. None of the sectors is self-sufficient. When the two sectors work in unison, the GDP of a nation is increased significantly. Various sectors have been discussed in this paper relating on how the two sectors can work together. These avenues as noted here include security, infrastructure development, promotion of commerce and trade between countries, institutionalization and protection of cottage industries. As seen in this paper, each party has a major role to play in the economy of a country. If one party does not play its part, chances are that the economy of a country will not thrive.
In conclusion, the paper has shown that the economic development of any nation is a contribution of both the private and public sector and each must play its role to ensure that economic development is achieved in a country.
Open Document