Public vs private sector. Who serves the public interest?

 It is impossible to conclusively answer this, as ‘good’ is far too subjective. Consider the amount of evil that has been done in the world ‘for the greater good’. The Chinese Communist Party believes they are acting for the good of the Chinese people - I’m sure Peter Navarro would strenuously disagree… and so on.

What we can assess is the motives of ‘the public sector’ (democratic representative governments) vs ‘the private sector’ (the collection of capitalist individual actors.)

Overall public sector is important for both social and economic development. They provide the basic facilities like water, electricity which private sector will not provide or will provide with high rates. They give educational and health institutions to the socially and educationally backward people to make them come forward.

Following are some of the public sector institutions of Pakistan

Pakistan Industrial Development Corporation

Pakistan International Airlines

Pakistan Locomotive Factory

Pakistan Mineral Development Corporation

Pakistan National Shipping Corporation

Pakistan Ordnance Factories

Pakistan Petroleum

Pakistan Post

Pakistan Railways

Pakistan State Oil

Pakistan Steel Mills

Key distinctions between the public and private sectors

Sometimes the public and private sectors work together to complete goals, such as construction or transportation projects. However, there are some significant differences between these two sectors, including:

Ownership:

The ownership of organisations within the private and public sectors is the most significant difference between them. Organizations in the public sector are owned and controlled by the government. Individuals or private companies own and manage organisations in the private sector.

Purpose:

Some state-owned enterprises engage in commercial activities or make a profit. Organizations in the public sector, on the other hand, typically serve the primary purpose of benefiting the public by providing services. Profits are the primary goal of businesses in the private sector.

Monetary Assistance:

The government provides financial assistance and funding to organisations in the public sector. These monies could originate from a variety of sources, including both direct and indirect taxes. Some government agencies, such as the Postal Service, do, nevertheless, earn revenue. Organizations in the private sector may receive some financial assistance, but they mainly fund themselves through income, stock offerings, or borrowing.

Employment:

Employees in the public sector work for local, state, and federal governments or public agencies. Typically, their wages are paid using public funds. Individuals work for a privately held corporation or a publicly traded company in the private sector. Profits from the company are used to pay the salaries of its employees.

Public sector employees typically enjoy more job stability because their organizations do not need to meet market pressures. These employees also often perform services that are consistently needed by the public, which can further ensure job safety.Employee Benefits

And while public sector salaries can be lower than those in the private sector, public sector employees often enjoy a greater and better deal. In the public sector, employees can enjoy benefits such as better working hours, medical covers, and retirement benefits.

Why only public sector?

Public sector is important for both social and economic development. They provide the basic facilities like water, electricity which private sector will not provide or will provide with high rates. They give educational and health institutions to the socially and educationally backward people to make them come forward.

Governments are designed to serve the public good (expressed in all kinds of ways, from getting rapists off the street to keeping that factory from dumping their radioactive waste into your water supply.) That is the whole reason we have governments - Because if we allow ourselves to remain divided we are easily conquered.

Capitalism is designed to use as it’s fundamental fuel the human impulse of greed, one of the ‘seven deadly sins’, in constant pursuit of the maximum profit. Because they aren’t inherently profitable, good deeds that happen in a capitalist framework are either coincidental or a matter of ‘virtue signalling’. (Macdonald's may choose to use ‘fair deals' burgers, but only because they are hoping that by loudly advertising they are doing so they can increase the price of their burgers and fries and make more profit.)

Raja Talal Javed

G&PA 6th semester

22-Mar-22