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

ProsUsually more efficientProfit motive and competition drive innovation

ConsMay be more concerned with profit than with

providing high quality service at an affordable rate

The Public Sector

Operated by governmentFederalProvincialMunicipal

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 handleOlympic VillageConfederation 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. 68-69Summarize the arguments for and against

privatization