Public-Private Sector

 

Public Sector:

The public sector is often made up of government-owned and run businesses that provide services to the general public. The public sector often provides services such as health care, national defense, public education, water management, and other such services. Organizations in the public sector, like those in the volunteer sector, do not strive to make a profit. Public services are often funded through a number of sources, including taxes, fees, and financial transfers from other levels of government (e.g. from a federal to a provincial or state government). Various governments throughout the world may have their own distinct approach of supporting public services.

Role of Public Sector:

The function of the public sector varies from society to society, depending on the region's dominant political and social theory.

1. A country's security depends on all diverse areas being equally safeguarded from injury and assault, national defense, or the establishment and employment of armed forces, is typically a part of the public sector's duty.

2. Foreign policy is another area where the public sector needs to show a consistent face in order to avoid competing treaties and agreements.

3. Governments are often given the authority to generate and manage money through a central bank in order to create a stable and universal monetary system that can be accessed by any private individual anywhere within the country's jurisdiction.

The following are some examples of public sector services and Organizations:

Education (Schools, Libraries)

Electricity

Emergency Services

Fire Department

Oil and Gas

Healthcare\Infrastructure

Law Enforcement

 Police Services

Postal Services

Social Services

Management of Waste

Challenges in Public Sector

For international leaders, the year 2020 and 2021 was full of problems. The COVID-19 epidemic, as well as the ensuing economic, educational, and national security difficulties, hit every country. With a record number of natural catastrophes, including fires, storms, and droughts, climate change issues become much more serious than they already were. And geopolitical instability became a common experience inside and between countries, impacting countries that had been unstable for a long time as well as those that had previously been seen as pillars of democracy and stability. These issues will exist in 2022. Citizens and companies are turning to their government leaders to guide them through these large-scale, complicated issues and help them emerge stronger. The majority of stakeholders have acknowledged that returning to the status quo in 2019 is neither an option nor a goal. They want a brighter future now in 2022, influenced by the lessons learned in 2020 and in 2021.

Challenges for Public Sector are:

• Economic

• Healthcare

• Education

• National Safety and Security

• Climate

Private Sector:

The private sector is the part of the economy that is owned, managed, and controlled by profit-seeking individuals and organizations. The majority of private-sector businesses are neither owned nor controlled by the government. However, in some cases, the private sector and the government can work together to deliver a service or a business venture to a community through a public-private partnership. A private sector firm can be formed via the privatization of a public entity or by the formation of a new business by private persons. Prices are stabilized in the private sector by ensuring fair market conditions.

Role of the Private Sector:

1. It provides essential commodities and services, contributes to tax revenues, and supports the efficient movement of capital, among other things. Because of its contribution to national income, the private sector is a significant actor in the economy.

2. The private sector is critical in terms of creating job possibilities in the community. The private sector controls a large number of enterprises, implying that these businesses employ more people than the governmental sector.

3. In all forms of advancements, the private sector plays a significant role. It helps to speed up the process of industrialization and community development. Companies in the private sector offer creative ideas that improve manufacturing processes and contribute to higher economic development by introducing new commodities, equipment, machinery, and technology.

4. The private sector provides the majority of products and services. It encourages the growth of human capital, allowing it to create more goods and services and so meet market demand.

Public Sector v/s Private Sector job opportunities

As there are more private entities than public entities, there are obviously more work chances for persons in the private sector. Despite this, both industries have a wide range of work opportunities, including healthcare, television, and banking. Even for the same work position, the pay grades in each industries will be vastly different. Because the government controls the public sector, its funding is reliant on government subsidies. Because public-sector enterprises are not for profit, they do not have as much discretionary resources to raise pay on the spur of the moment. Typically, public sector employees are assigned to pay grades and must progress through them in order to receive a raise.

    The private sector, on the other hand, might be a little more unpredictable in terms of employment stability, however there are normally more options for advancement and promotion within one organization

Public-Private Partnership (PPP)

Collaboration between a government agency and a private-sector enterprise that may be utilized to fund, create, and run projects such as public transit networks, parks, and convention centers is known as a public-private partnership. Financing a project through a public-private partnership can help it be done faster or even get started in the first place. Tax or other operational income concessions, liability protection, or partial ownership rights over ostensibly public services and property are all common elements of public-private partnerships.

Large-scale government projects, such as roads, bridges, and hospitals, can be constructed using private finance through public-private partnerships. When private sector technology and creativity are combined with public sector incentives to accomplish work on time and on budget, these collaborations perform effectively.

Cost overruns, technical faults, and an inability to achieve quality requirements are risks for private enterprises, while agreed-upon use fees for public partners may not be sustained by demand—for example, for a toll road or a bridge.

In Pakistan, Sindh province is regarded to have Pakistan's most active PPP authority. Following motorways, it has moved on to multibillion-dollar special economic zones, water supply, and wastewater treatment public-private partnerships, attracting investors, consultants, and legal specialists to the nation. Sindh ranked 6th in Asia for Enabling PPPs.

References:

https://www.paydata.co.uk/hr-hub/blogs/what-is-the-difference-between-the-public-and-private-sector/

https://www.pwc.com/gx/en/search.html?searchfield=private+Sector&tp=long&pwcGeo=GX&pwcLang=en&pwcHideLevel=0&pwcSiteSection=

https://www.wallstreetmojo.com/public-sector-vs-private-sector/