Private Sector Triumph

By definition, the global economy is divided into three sectors which are public sector, private sector , and voluntary sector. Public sector refers to businesses and manufacturing units run by the government or at least the government has the majority share in public sector enterprises. The profit goes to the government.

Private sector refers to businesses, services, and factories that are owned by individuals. The profit goes to the individuals. The governments only set certain regulatory guidelines or issue licenses to various players in private sector .

The third one, voluntary sector, is very much like private sector , in that they are owned by individuals or organizations. However, they do not work for profit. The activities of most of the non government organizations come under this category.

Which One Is Better
This is an age old question, which has unfortunately no convincing answer. There are supporters for both sides. Different countries adopt different strategies. The United States supports private sector , while the Peoples Republic of China adopt a pro public sector stance. In some other countries such as India, it is a mixture of private and public sector enterprises.

Until about two years back, the general feeling in the media and mainstream economists had been pro private ownership. A majority had believed that private sector was the way to go, and the job of governments was not to run businesses, but to ensure good governance.

However, it all changed with the global monetary crisis. Countries with cent percent privately owned economies collapsed badly during the recession. Countries that have a dominant public sector or those who have a mixed economy of public and private enterprises survived the crisis relatively easily.

Therefore, at present, the private enterprises do not have the aura of success that they once had.

Is The End Of Private Sector Near
Despite the presence of many doomsayers, the private enterprises are here to stay. If you look carefully into the causes of the recent financial meltdown, you can observe that it was not caused by the fact that many financial organizations are privately owned. The irresponsibility and lack of foresight of the top executives of the commercial organizations and the lack of a proper controlling mechanism are the real reasons for the crisis. It does not actually mater whether the banks and indemnity companies are run by governments or by shareholders, as long as the same individuals run these organizations and the same kind of regulatory mechanism prevails.

In short, one cannot translate the problems of a few top executives as the pitfalls of a whole system. The private sector has given some useful institutions to the people. There is every chance that it would continue to do so. If you are not convinced, take the case of self storing units in the United States and Canada.

Store Units In Private Sector
One can use a self storing unit when one runs out of available space at home, or, as some recent cases indicate, when one loses a home altogether. One can take these units for rent and keep home appliances and personal belongings there. These units are run by individual entrepreneurs.

Rental store units have been doing reasonably good business, despite recession and despite being in private sector . The success stories from storing business clearly indicate that the private enterprises, if run by the right people, can work efficiently.

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