answersLogoWhite

0


Best Answer

The public sector exists because citizens agree upon services that should be provided but can not be provided by the private sector.

ie. roads, post office, national defense, air/water quality, food quality assurances, education, etc.

If the private sector can provide the same level of service at a better cost then the private sector should provide those services.

However, public sector markets work in areas called "failed markets". Failed markets preclude private solutions since there is inadequate or no revenue generated for the service provided.

Case in point - clean water. Government oversee and provides clean water to citizens because it is something Americans believe should be available to all Americans.

An example of counties with little or no public work are third world states. Africa, some central American, and south American states, etc. In these countries a small portion of the population has nice homes, public safety, roads and medical care. The state does not provide these services for the majority of the population and most people can not afford to hire private contractors to build nice roads to their house or hire doctors or educate their children. These countries are closer to a pure capitalist or private sector system. These countries have at some level, decided that the level of public good required for fellow citizens is very low by American standards.

At the other extreme are countries like Cuba. Cube may actually have a better medical system (at lease on the preventative level) than the USA. But the nation state control is excessive so there is little incentive for people to start up businesses and therefore jobs are scarce and innovation is limited.

The US historically has been leery of too much government but also believes in opportunities for all. The question of whether the public sector should be privatized starts with what do you think is best. Provide a level of clean water/air, education, transportation, health care and defence so that your citizens have an opportunity to realize their potential or not. If you chose "not" - then you are looking at a more capitalistic or communistic system that either under or over protects and thereby provides no incentive for personal initiative.

The correct balance is a moving target and keeps thinking people thinking about calibrating public and private sectors roles in a nation state's economy.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Should public sector be privatised or not?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Should public sector be privatised?

No, public sector should not be privatised because it was owned by the people.


Is the public sector more efficient than the private sector?

Generally the private sector is more efficient because efficiency means lower cost and more profit. The public sector doesn't have to worry about profit so there is no incentive to be efficient.


Can politicians be privatised?

No, politicians can not be privatized. When something is privatized, it means that an organization has gone from the public sector to the private sector. It can also refer to government outsourcing.


Reasons for privatisation?

to promote efficiency. this is because, one common problem facing the public sector is bad attitude towards work. in that respect, if the sector is privatised, the new management would instill a strict routine check on the workers thereby increasing efficiency.


Should bahamasair be privatised?

yes it should


Is the police a public sector?

public sector


Why does normative analysis play a more significant part in analysing public sector activities than private sector activities?

Because normative analysis inherently deals with 'what should be'. Public sector activities are politically-motivated and chosen, so they reflect what the public believes 'what should be'.


What is public sector budgeting?

A sector in which the public can budget


Why is it necessary for the public sector to exist?

the public sector necessity


Differences between public sector accounting and private sector accounting?

The difference between public sector and private sector is that when you're in the public sector you work for the government whereas private sector is not. Same applies to accounting.


What are private sector and public sector?

Private sector are things that are owned by people. Public sector are things that are owned by the government.


What is the difference between public sector and private sector and why do government support public sector?

Government is public sector. Corporations and partnerships are Private sector. The government wants to support both the public and private sector to improve the economy and well-offness of the people it serves.