Private and Public Sectors

1444 Words6 Pages
Differentiate public and private sectors in terms of their goals also explain motivation for engaging in PPP. Public Sector and it's goal: Normally, the public sector consists of governments and all publicly controlled or publicly funded agencies, enterprises, and other entities that deliver public programs, goods, or services. On other word, the public sector is the part of the economy concerned with providing various government services such as the military, police, public transit and care of public roads, public education, along with health care and those working for the government itself, such as elected officials. Below is diagram of Public Sector Agencies: Public sector organizations may exist at any of four levels: 1. International (multistate entities or partnerships). 2. National (an independent state). 3. Regional (a province/state within a national state). 4. Local (a municipal-level body such as a city or county) Usually the aim of public sector business is to provide services to the community. For example if the transport system is owned by the government and it is running a bus service to an interior village and it is not getting enough customers, the government might still continue it as its main objective is to provide service and not to maximize profits. Whereas private sectors business give priority to profits and may end the service if it does not find it profitable to run the service. Secondly Public sector strives to create employment whereas Private sectors main aim is to become efficient and cut cost and in this process they might cut jobs. Thirdly Public sector business usually locates in regions where there is underdevelopment so as to create jobs and income for local population. Private sectors might not keep these things in consideration and will look for external economies of scale. Beside these other goals
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