This website uses cookies to ensure you have the best experience. Learn more

Private And Public Sector Essay

4529 words - 19 pages


















The purpose of ...view middle of the document...

Private sector

Anon (2011) states that in economics, the private sector is that part of the economy that is not state controlled (which is run by private individuals and companies), and encompasses all for-profit businesses that are not owned or operated by the government.

Bailey (1995:97) gave the characteristics of a private good as both excludability and rival in consumption, for example commodities that are physically consumed or where property rights confer exclusive use. We must also note that when we talk about private sector, we find that there are goods that are purely private goods and their outputs would normally increase in proportion to the population because of the their exclusive property rights, and then we find certain goods that are necessarily initially private, for example water has the economic characteristics of a private good in that its use is both rival and excludable( in that, subject to any legal constraints, water supply can be disconnected if consumers refuse to pay charges) and is also the same for sewerage service.

The disadvantages of private firms according to Stiglitz (1988:203) are that they fail to take into account the costs that their pollution imposes on others; they fail to take onto account the social gains from employment (and thus may replace men with machines, when to do so is not socially desirable); they fail to take into account the congestion costs associated with locating in the crowded urban area; and they attempt to take advantage of uninformed and unwary consumers. These allegations are serious, but unfortunately, it is difficult to assess their quantitative importance, or the extent to which public production would alleviate these problems, or at least alleviate them better than appropriately designed regulatory and tax-subsidy policies.

Public sector

According to (2010) the public sector is part of national economy providing basic goods or services that are not, or can not be, provided by the private sector. It comprises of national and local governments, public corporations, and quasi-autonomous non-government organizations (QUANGO).
The composition of the public sector varies by country but in most countries the public sector includes such services as the police, military, public roads, public transport, primary education and healthcare for the poor. These are monitored on three levels: central government, general government and local government (Anon, 2011).
Burger (2010) noted that the public sector is the biggest part of the economy as by the end of March 2008, it had over 1.2 million people in its employ.
According to Stiglitz (1988:24) the main function of the public sector is to provide the legal framework within which all economic activities occur. This can be divided into three sub-divisions, namely: production, purchase and redistribution. That is a) the production of goods and services, along with the regulation and subsidization of...

Other Papers Like Private and Public Sector

Public Sector Accounting and Finance Essay

2496 words - 10 pages PUBLIC SECTOR ACCOUNTING AND FINANCE 1.0. Introduction: One of the main distinguishing factors between public and private sector organisations lies in their objectives and sometimes funding structure. While public sector bodies have a more social objective and focus more on the allocation or distribution of public goods and services within the country, private sector bodies have the main objective of increasing the wealth of their

Public Law and Private Law Essay

5770 words - 24 pages ‘The conventional division of private and public law is to some extent a false dichotomy’. Discuss. The aim of this essay is to discuss the conventional division of private and public law is to some extent a false dichotomy. In order to achieve this aim it is necessary to inform that the writer, will examine the Children Act 1989 (CA 1989), giving examples of case law. This will include a brief background of implementation of private and

The Relationship Between Public and Private Schools

4090 words - 17 pages CHAPTER I INTRODUCTION A person's education is one of the most important factors in determining whether or not they will become a productive member of society. That is why when considering an education the quality of the education is almost as important as the education itself. So when private schools came into the picture the debate then began between public and private schools. There have been many discrepancies between the values of a

Relationship Between Private and Public Police

878 words - 4 pages Relationship between Private and Public Police Hope Washington CJS/250 Introduction to Security April 7, 2013 John Adams The relationship between public and private police, initially it was the responsibility of the public police-law enforcement to provide protection to all society and the property that existed within the jurisdictions these police officers served. In contemporary day, public and private police officials can be found

Differentiating Between Public and Private Organizations

619 words - 3 pages Differentiating Between Public and Private Organizations Kristie Caldwell HSM/210 February 22, 2015 University of Phoenix Differentiating Between Public and Private Organizations There are many social policies that may affect an individual’s future as a human services worker. The department the person is working in is what determines the policies that will affect them. Individuals dealing with the disabled consumers are affected by the


1000 words - 4 pages Difference between private and public company structure under the Corporations Act Governance Foundations (1) Types of companies Public vs private Type of company Differences in regulation Regulated by Percentage of registrations - Limited by shares Sub-classified as small or large ASIC - Unlimited with share capital Small = Can be any size; some are very large - consolidated gross operating revenue

Pure Private Versus Pure Public Goods and the Mixed Cases:

1851 words - 8 pages , and everyone is pretty close to self-sufficient, or reduced to working within smaller, narrower, and more primitive groups (e.g., kinship and tribal) in order to provide public goods. The state fails to provide the most basic infrastructure to support market transactions and reduce risks. The private sector is a mix of large powerful state protected or owned monopolies, which collude and cooperate with one another on one hand, and small

Comparisons Between Public Prisons and Private Prisons in the Us

1790 words - 8 pages the world and the two biggest private prison companies now in the US are CCA and The GEO group with the capacity of nearly 200,000 beds and total revenue of $3 billion in 2010. Before comparing between public and private prisons, we should know that both of them are in the prison system and have the same aims, which are punish offenders, rehabilitate offenders, keep the public safe and provide structure to criminals. Since the increasing number

Public and Private Schools: How Do They Compare

1179 words - 5 pages Public and Private Schools: How Do They Compare Trying to find the right school for children not yet enrolled can be a difficult and tedious process. According to the U.S. Department of Education, National Center for Education Statistics (2009), during the 2007-08 school year there were an estimated 119,150 kindergarten through grade 12 schools in the United States. This number includes 87,190 traditional public schools and 28,220 private

Private Sectors and Public Private Sectors to Improve the Entrepreneurial Mindset in Young Jamaicans?

1392 words - 6 pages hindering job creation and growth. Our research covers what the government, private sector and public private sector can do to help the Jamaican youth develop an entrepreneurial mind-set in order for the nation to experience economic growth. Although we, as Jamaicans should not only rely on the government for innovative and plans, entrepreneurs must find indicative and decisive ways to help drive growth in the entrepreneurial society. Reference Zikmund, William G.. Business research methods. Chicago: Dryden Press, 1984. Print.

Public Schools vs. private Schools its a contrast essay 6 paragraphs topic 4 body and aconclusion

548 words - 3 pages Public Schools vs. Private SchoolsPublic or private? That is the question. One important thing to keep in mind when determining a school choice is the long and short term effects on students and their views. The differences between them can help with thedecision on which kind of school to choose. Public and private schools are different in funding and their learning environment.Public and private schools have different sources of support. Public

Related Essays

Public Sector Vs. Private Essay

588 words - 3 pages The public and private sectors are heading in opposite directions in labor-management relations. Private sector employers and unions are collaborating in an effort to meet the requirements of today's business realities; While recent government cutbacks have damaged the relationship between the public sector and its unions. Unions remain an important political factor (especially within the Democratic Party), both through mobilization of

Private Sector Public Sector Cybersecurity Issues Essay

1682 words - 7 pages , & Washington, 2013). Private companies harvest meta-data to create complex advertising campaigns (Yu, McLaughlin & Levy, 2014). We shall focus on the retail industry, and how companies use meta-data. We shall also discuss the cons if meta-data collection, the responsibility of lawmakers in regulating meta-data collection. Finally, we shall look at the possible effects of cybersecurity regulations of meta-data on the private industry. Meta-Data

Working For The Public Sector Versus The Private Sector

733 words - 3 pages As with most choices, especially in the work world, there are benefits and consequences of working for both public and private sectors. There are different sets of needs to be met in each criterion but they may slightly relate to each other as well. The public sector mostly relate to Government work. There are special exams a person has to take whenever they apply for any work with the government. There are some very strict rules and

Should Jails Be In The Private Or Public Sector

721 words - 3 pages Stefan Wolf Staertzel Thursday, September 16 2010 Should Jails be publically or privately owned? Should Jails be in the Public or Private Sector? The Public Sector is the area of nation’s affairs under governmental control rather than private control, when the Private Sector is the area of nations economy under private control rather than governmental. A Jail in most cases is ran by the government and ran by the public sector, except for some