Public sector

Last updated

Employment in the UK Public Sector, December 2013 Employment in the UK Public Sector, December 2013.png
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 services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, infrastructure, public transit, public education, along with health care and those working for the government itself, such as elected officials. The public sector might provide services that a non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service. [1] Public enterprises, or state-owned enterprises, are self-financing commercial enterprises that are under public ownership which provide various private goods and services for sale and usually operate on a commercial basis.

Contents

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:

A borderline form is as follows:

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 ]

Public roads, bridges, tunnels, water supply, sewers, electrical grids and telecommunications networks are among the public infrastructure.

Public sector staff

Rates of pay for public sector staff may be negotiated by employers and their staff or staff representatives such as trade unions. In some cases, for example in the United Kingdom, a pay review body is charged with making independent recommendations on rates of pay for groups of public sector staff.[ citation needed ]

By country

France

As of 2017, France had 5.6 million civil servants, amounting to 20% of all jobs in France. They are subdivided into three types: the State civil service (Fonction publique d'État, FPE) includes teachers and soldiers, and employs 44% of the workforce. The local civil service (Fonction publique territoriale; FPT) is made up of employees of town halls and regional councils: 25% of the workforce. The hospital civil service (Fonction publique hospitalière, FPH) consists of doctors and nurses and is 21% of the workforce. [3]

Criticism

Right-libertarian and Austrian School economists have criticized the idea of public sector provision of goods and services as inherently inefficient. [4] 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." [4]

American libertarians and anarcho-capitalists have also argued that the system by which the public sector is funded, namely taxation, is itself coercive and unjust. [5] However, even notable 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. [6]

See also

Related Research Articles

<span class="mw-page-title-main">Anarcho-capitalism</span> Political philosophy and economic theory

Anarcho-capitalism is an anti-statist and libertarian political philosophy and economic theory according to which all government institutions can and should be replaced by private ones. Anarcho-capitalists hold that society tends to contractually self-regulate and civilize through the voluntary exchange of goods and services. This would ideally result in a voluntary society based on concepts such as the non-aggression principle, free markets and self-ownership. In such a stateless society, private property rights would be enforced by private agencies. In the absence of statute private defence agencies and/or insurance companies would operate competitively in a market and fulfill the roles of courts and the police, similar to a state apparatus. Some anarcho-capitalist philosophies understand control of private property as part of the self, and some permit control of other people as private property.

<i>The Machinery of Freedom</i> 1973 nonfiction book by David D. Friedman

The Machinery of Freedom is a nonfiction book by David D. Friedman that advocates an anarcho-capitalist society from a consequentialist perspective.

Business is the practice of making one's living or making money by producing or buying and selling products. It is also "any activity or enterprise entered into for profit."

The French civil service is the set of civil servants (fonctionnaires) working for the Government of France.

A public–private partnership is a long-term arrangement between a government and private sector institutions. Typically, it involves private capital financing government projects and services up-front, and then drawing revenues from taxpayers and/or users for profit over the course of the PPP contract. Public–private partnerships have been implemented in multiple countries and are primarily used for infrastructure projects. Although they are not compulsory, PPPs have been employed for building, equipping, operating and maintaining schools, hospitals, transport systems, and water and sewerage systems.

Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of project delivery method, usually for large-scale infrastructure projects, wherein a private entity receives a concession from the public sector to finance, design, construct, own, and operate a facility stated in the concession contract. The private entity will have the right to operate it for a set period of time. This enables the project proponent to recover its investment and operating and maintenance expenses in the project.

The nature of capitalism is criticized by left-wing anarchists, who reject hierarchy and advocate stateless societies based on non-hierarchical voluntary associations. Anarchism is generally defined as the libertarian philosophy which holds the state to be undesirable, unnecessary and harmful as well as opposing authoritarianism, illegitimate authority and hierarchical organization in the conduct of human relations. Capitalism is generally considered by scholars to be an economic system that includes private ownership of the means of production, creation of goods or services for profit or income, the accumulation of capital, competitive markets, voluntary exchange and wage labor, which have generally been opposed by most anarchists historically. Since capitalism is variously defined by sources and there is no general consensus among scholars on the definition nor on how the term should be used as a historical category, the designation is applied to a variety of historical cases, varying in time, geography, politics and culture.

<span class="mw-page-title-main">Public service</span> Service(s) provided to all members of a community

A public service or service of general (economic) interest is any service intended to address specific needs pertaining to the aggregate members of a community, whether provided directly by a public sector agency, via public financing available to private businesses or voluntary organisations, or provided by private businesses subject to a high level of government regulation. Some public services are provided on behalf of a government's residents or in the interest of its citizens. The term is associated with a social consensus that certain services should be available to all, regardless of income, physical ability or mental acuity. Examples of such services include the fire services, police, air force, paramedics and public service broadcasting.

A privately held company is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the company's stock is offered, owned, traded or exchanged privately, also known as "over-the-counter". Related terms are unlisted organisation, unquoted company and private equity.

The public service of Ireland refers to the entirety of public administration within the state government apparatus. The Department of Public Expenditure, National Development Plan Delivery and Reform defines the Irish public service as consisting of:

Workforce management (WFM) is an institutional process that maximizes performance levels and competency for an organization. The process includes all the activities needed to maintain a productive workforce, such as field service management, human resource management, performance and training management, data collection, recruiting, budgeting, forecasting, scheduling and analytics.

Right-libertarianism, also known as libertarian capitalism, or right-wing libertarianism, is a libertarian political philosophy that supports capitalist property rights and defends market distribution of natural resources and private property. The term right-libertarianism is used to distinguish this class of views on the nature of property and capital from left-libertarianism, a variant of libertarianism that combines self-ownership with an anti-authoritarian approach to property and income. In contrast to socialist libertarianism, right-libertarianism supports free-market capitalism. Like most forms of libertarianism, it supports civil liberties, especially natural law, negative rights, the non-aggression principle, and a significant transformation of the modern welfare state.

Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk.

A private defense agency (PDA) is a theoretical enterprise which would provide personal protection and military defense services to individuals who would pay for its services. PDAs are advocated in anarcho-capitalism as a way of enforcing the system of private property.

<span class="mw-page-title-main">Public/social/private partnership</span>

Public/social/private partnerships are methods of co-operation between private and government bodies.

<span class="mw-page-title-main">Mouchel</span> UK business services company

Mouchel Group, originally known as L. G. Mouchel & Partners Ltd, was an infrastructure and business services company headquartered in Woking, United Kingdom. It provided advisory, design, project delivery and managed services associated with infrastructure and business services across the highways and transportation, local government, emergency services, property, health, education and utility markets across the world.

The Partnership for Public Service is a nonprofit, nonpartisan organization based in Washington, D.C. whose mission is to inspire a new generation of civil servants and to transform the way government works.

<span class="mw-page-title-main">Taxation as theft</span> Position that taxation is immoral

The position that taxation is theft, and therefore immoral, is found in a number of political philosophies. Its popularization marks a significant departure from conservatism and classical liberalism, and has been considered radical by many as a result. The position is often held by anarcho-capitalists, objectivists, most minarchists, right-wing libertarians, and voluntaryists, as well as left-anarchists, libertarian socialists and some anarcho-communists.

Remunicipalisation commonly refers to the return of previously privatised water supply and sanitation services to municipal authorities. It also encompasses regional or national initiatives.

Privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector or common use to the private sector or to private non-profit organizations. In a broader sense, privatization refers to transfer of any government function to the private sector - including governmental functions like revenue collection and law enforcement.

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. FRANCE 2 (September 4, 2017). "Fonctionnaires : les chiffres entre le secteur public et privé" [Civil servants: figures for the public and private sectors] (in French). Franceinfo . Retrieved July 7, 2024.
  4. 1 2 Rothbard, Murray (1961). "The Fallacy of the 'Public Sector'". The Logic of Action Two, Application and Criticism from the Austrian School. [ ISBN missing ].
  5. Murray N. Rothbard (1998). "The Moral Status of Relations to the State", chapter 24 of The Ethics of Liberty. Humanities Press 1982, New York University Press 1998. ISBN   978-0-8147-7506-6.
  6. Ellickson, R. C. (2017). "A Hayekian Case Against Anarcho-Capitalism: Of Street Grids, Lighthouses, and Aid to the Destitute". NYUJL & Liberty, 11, 371.

Sources