Distinction Between the Private and Public Sectors
- Imagine you're deciding where to buy a new phone.
- You have two options:
- A government-owned store that prioritizes affordability and accessibility.
- A privately-owned store focused on innovation and profit.
This choice reflects the fundamental difference between the public and private sectors.
What is the Public Sector?
Definition
Public sector
The public sector consists of parts of the economy controlled by the government.
- It includes:
- Government Departments: Such as defense, education, and healthcare.
- Public Sector Companies: Businesses owned by the government, like utilities or public transportation.
Characteristics of the Public Sector
- Ownership: Owned and operated by the government.
- Funding: Primarily funded through taxes.
- Objectives: Focuses on social welfare, accessibility, and equity rather than profit.
- Accountability: Accountable to citizens through government oversight.
