What are the role of public and private sector in economic d

What are the role of public and private sector in economic development.

Solution

Public sector plays a central role in supporting economic development and reducing poverty. In most countries public sector targets to fulfil the national goals i.e. the removal of poverty, reduction in inequalities of income, the attainment of self-reliance, employment opportunities expansion, acceleration of the pace of agricultural and industrial development, removal of regional imbalances, reducing concentration of ownership and prevent growth of monopolistic tendencies by acting as efficient countervailing power to the private sector, to make the nation self-reliant in modern technology and create technological, professional, and managerial cadres so as to ultimately rid the nation from dependence on foreign aid.

The private sector are actuated by motives of private gain, however plays an equal important role in the country\'s economic growth. Private sector businesses play a vital role in manufacturing industries and the import and export trade of the country. They are a main contributor to national income and the principal job creator and employer. Moreover the efficiency gained from the private sector meaning that from a given level of resources, the society getting maximum output, thus leading to economic growth