Do you think the government can provide goods and services to the public as efficiently as or better than the private sector? Support your conclusions with examples and applications
There have been numerous debates about which sector is better, between the private and the public sectors. Previously, there was a common notion that the private sector is more efficient than the government supported industry. However, some researches have been done, which showed that the government operated sectors are much better, as compared to the former. For instance, one of the studies looked at the European privatization of firms between the 1980 to 2000 period. The study entailed the comparison of the companies that had remained public, to those that had changed into privatization. The final result showed that those companies that had shifted to the privatized sector recorded worst performance, as compared to the ones that were still operating under the public sector (Does Privatization Serve the Public Interest, 2017).
The public healthcare systems tend to be more efficient in viewing the importance of the government involvement in the provision of the public services since it offers a universal coverage, as well as standing the chance of benefiting from an economy of scale. The private sector requires a kind of proper funding for it to smoothly run its operations. In contrary, the IMF, in conjunction with the World Bank championed for the structural adjustment of the healthcare from the public to the private sector in the years of 1980s. The two organizations pushed for the government to withdraw its support, and leave the patient to pay for their medical services. Most of the poor people faced the stripping off, of their healthcare covers, while at the same time; the services remained available for only those that were in a position to afford them. In any case, the government had been left to continue running the health care services, the poorly earning individuals would still be enjoying the best medical services, just like their wealthy counterparts (Does Privatization Serve the Public Interest,2017).
How can a business incorporate risk into the decision-making process?