The Private and Public Sectors BBI2O

The Private Sector Businesses are individually owned and operated The primary purpose of most private sector businesses is to make a profit

The Private Sector Pros  Usually more efficient  Profit motive and competition drive innovation Cons  May be more concerned with profit than with providing high quality service at an affordable rate

The Public Sector Operated by government  Federal  Provincial  Municipal Purpose is to provide a service to the public Ex: Schools, hospitals, public utilities

The Public Sector Pros  Purpose is first and foremost to service public need  Services are more affordable Cons  Slow, inefficient  Public sector budgetary process may actually provide incentives to spend more money than necessary  May create artificially low prices (education, electricity)

Crown Corporations CBC NFB Petro-Canada* VIA Rail Hydro One Canada Post National Arts Centre

Public-private partnerships Attempts to combine best features of each The resources and logistics from a project may be too big for one sector to handle  Olympic Village  Confederation Bridge

Questions In our community…  What services are provided by the private sector?  What services are provided by the public sector?

Privatization When a publicly owned business or industry is sold to the private sector  Saves gov’t money  Private sector may be better suited The government may stop providing the service and let the private sector fill the gap Or the government may sell their assets to a private buyer

Privatization Read article on p  Summarize the arguments for and against privatization