Public sector

Lena Węglarz
Key facts

● Public sector organisations are owned by the government.

● They provide goods and services for the benefit of the community.
● They are run by the government.
● They operate with money raised from taxes.
● They must maintain operational and financial transparency.
Role of public sector

● Preserving internal security

● Education as the basis of a stable and productive society
● Healthcare
● Essential infrastructure: roads, bridges and public transit networks
● Welfare programs: food assistance, housing subsidies, unemployment benefits
● Conserving the environment and maintaining natural resources
Size of public sector

To ensure the well-being of society as a whole, the public sector provides essential goods and
services to the general public. Depending on the political and economic systems, the size and
scope of the public sector might differ from country to country. In certain nations the public
sector is larger and more active in providing goods and services, whereas in others, the private
sector is dominant.
Advantages

● Public sector organisations provide goods and services for people regardless of their
income or social standing.
● Addressing pressing issues such as poverty, inequality and prejudice
● Economic stability
● National security
● They help increase economic growth
Disadvantages

● A lot of red tape and slow to change.

● May be inefficient
● Frequently exposed to political intervention, which may lead to decisions based on
politics rather than practical reasons
● Stringent restrictions and monitoring which may hinder their capacity to operate
efficiently
● Low innovation
● Corruption
Types

1. Executive agencies
2. Independent agencies
3. State-owned enterprises
4. Public-private partnerships
5. Local governments
6. Nonprofit organisations
Examples

● government-run hospitals
● Department of Education
● Environmental Protection Agency
● NASA
● public transportation services
● schools
Bibliography

https://www.bbc.co.uk/bitesize/guides/zpx7gdm/revision/1

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