Private sector refers to that part of the economy which is controlled or owned by private individuals, either directly or through stock ownership.
Private sector company is a company with restricted membership and no issue of shares. Private sector enterprise is a business that is privately owned and not under State control. Private sector refers to private or individual initiative especially in business. Private sector is that part of an economy or industry which is free from direct State control.
The Private Sector and Privatization in Social
Services - Is the Washington Consensus Dead?
Santosh Mehrotra, UNDP Regional Centre for Asia and Pacific, Bangkok - Enrique Delamonica, Policy Analyst, Global Policy Section, UNICEF
One of the most significant developments in the 1990s in social policy in developing and transition countries has been the growth of privatization in health, education and water services - three basic services, which involve most of the Millennium Development Goals (MDGs). Welfare pluralism was very much a core element of the Washington Consensus.
Despite the talk of the Washington Consensus being dead for years, the international financial institutions have pushed for welfare pluralism in social services since the 1990s. This article critically scrutinizes the arguments and evidence that have been made in favour of greater private sector participation in these services. The article addresses what role the private sector could or should play in these services and is, thus, driven by practical policy concerns. - Global Social Policy, Vol. 5, No. 2, 141-174 (2005)
Comparing Public and Private Sector
Paul C. Nutt, The Ohio State University
Abstract: Public and private sector decision making is studied with an experiment. The study compares decision making in a tax-supported general purpose governmental agency with that done by a business firm selling to a market, using a simulation to capture differences in the preferences and practices of mid-level managers working in the two sectors. The simulation calls for participating managers to assess the risk and prospect of adopting budgets tailored to match each sector. A cognitive culture that stresses analysis, speculation, bargaining, or networking is employed to fashion a budget appropriate for a public and a private sector organization, each with a controversial and a noncontroversial budget amount. The literature on public/private differences was consulted to make predictions, suggesting that public sector managers would favor bargaining and networking and private sector managers would favor analysis and speculation. The cognitive style literature suggests that managers favor budgets constructed with an approach that is consistent with their preferred cognitive style and see less risk in the choice, except in a public setting where risk would be unaffected. The study finds that private sector managers are more apt to support budget decisions made with analysis and less likely to support them when bargaining is applied.