Public sector

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"Public organization" redirects here. For the type of Thai agency, see State agencies of Thailand § Public organizations.

Economic sectors
Three-sector model
Additional sectors
Theorists
Sectors by ownership
Employment in the UK Public Sector, December 2013

The public sector, also called the state sector, is the part of the economy composed of both

public ownership
which provide various private goods and services for sale and usually operate on a commercial basis.

Organizations that are not part of the public sector are either part of the private sector or voluntary sector. The private sector is composed of the economic sectors that are intended to earn a profit for the owners of the enterprise. The voluntary, civic, or social sector concerns a diverse array of non-profit organizations emphasizing civil society. In the United Kingdom, the term "wider public sector" is often used, referring to public sector organizations outside central government.[2]

Organization

The organization of the public sector can take several forms, including:

  • Direct administration funded through
    taxation; the delivering organization generally has no specific requirement to meet commercial
    success criteria, and production decisions are determined by government.
  • State-owned enterprises; which differ from direct administration in that they have greater management autonomy and operate according to commercial criteria, and production decisions are not generally taken by a government (although goals may be set for them by the government).
  • The public sector in many countries is organized at three levels: Federal or National, Regional (State or Provincial), and Local (Municipal or County).
  • Partial outsourcing (of the scale many businesses do, e.g. for IT services) is considered a public sector model.

A borderline form is as follows:

  • Complete
    Private Finance Initiative
    .)
  • Public employee unions represent workers. Since contract negotiations for these workers are dependent on the size of government budgets, this is the one segment of the labor movement that can actually contribute directly to the people with ultimate responsibility for its livelihood. While their giving pattern matches that of other unions, public sector unions also concentrate contributions on members of Congress from both parties who sit on committees that deal with federal budgets and agencies.

Infrastructure

Infrastructure includes areas that support both the public's members and the public sector itself. Streets and highways are used both by those who work for the public sector and also by the citizenry. The former, who are public employees, are also part of the citizenry.[citation needed]

telecommunication
networks are among the public infrastructure.

Criticism

Austrian School economists have criticized the idea of public sector provision of goods and services as inherently inefficient.[3] In 1961, Murray Rothbard wrote: "Any reduction of the public sector, any shift of activities from the public to the private sphere, is a net moral and economic gain."[3]

American

small-government proponents have pushed back on this point of view, citing the ultimate necessity of a public sector for provision of certain services, such as national defense, public works and utilities, and pollution controls.[5]

See also

References

Citations

  1. ^ "public sector". Investorwords, WebFinance, Inc. 2016.
  2. ^ Glover, A., Accelerating the SME economic engine: through transparent, simple and strategic procurement, paragraph 4.26, accessed 7 October 2022
  3. ^ a b Rothbard, Murray (1961). "The Fallacy of the 'Public Sector'". The Logic of Action Two, Application and Criticism from the Austrian School. [ISBN missing].
  4. ISBN 978-0-8147-7506-6
    .
  5. ^ Ellickson, R. C. (2017). "A Hayekian Case Against Anarcho-Capitalism: Of Street Grids, Lighthouses, and Aid to the Destitute". NYUJL & Liberty, 11, 371.

Sources

  • Barlow, J. Roehrich, J.K. and Wright, S. (2010). "De facto privatisation or a renewed role for the EU? Paying for Europe's healthcare infrastructure in a recession." Journal of the Royal Society of Medicine. 103:51–55.
  • Lloyd G. Nigro, Decision Making in the Public Sector (1984), Marcel Dekker Inc.
  • David G. Carnevale, Organizational Development in the Public Sector (2002), Westview Pr.
  • Jan-Erik Lane, The Public Sector: Concepts, Models and Approaches (1995), Sage Pubns.
  • A Primer on Public-Private Partnerships PFM blog: A primer on Public-Private Partnerships
  • What is the Public Sector? Definition & Examples. (2016, June & July). Retrieved June 10, 2017, from What is the Public Sector? Definition & Examples
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