Neither private sector, nor government alone can bring in inclusive growth in the country. There is a need for a new model of cooperation between public and private sector. Discuss.
There are famous sayings such as- ‘It takes two to tango’ and ‘you cannot clap with one hand’. Similar is the case with public and private sector co-operation if growth is needed of optimum level. Gone are the days when the economy and growth of a country could solely depend in public/government hands. There is dire need for both to co-operate. The question arises as to why there is need for co-operation between the two sectors. With the involvement of the private sector, a country is benefited with brings stronger managerial capacity, access to new technology and specialized skills that governments cannot afford to develop on their own. A classic example of public-private co-operation is the PPPs. The PPPs have enabled to increase competition and efficiency in service provision, expanded coverage and also reduce delivery costs. Also, these days, another route in vogue is of outsourcing or working in partnership with the private sector. Through this, governments can benefit from the strong incentives for private firms to keep costs down. From the private sector perspective, an involvement with the government frees them from bureaucratic problems and there is speedy implementation of any initiative. In this way, none are at loss- the private sector or the government sector. And most importantly, inclusive growth and public interest is catered to.
"Neither private sector, nor government alone can bring in inclusive growth in the country. There is a need for a new model of cooperation between public and private sector." Discuss.
Published: December 29, 2016 | Modified:June 27, 2019