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The Two Sectors (by alex_makh)
18.04.2011, 11:03
The economy of each country is built in such a way, that in general consists of two main sectors. Ono of them is the Private Sector. The Private Sector is the sphere to which all the private companies and corporations belong. It consists of a large number of businesses run by private entrepreneurs. The private sector clusters are aimed at making profit and building-up private assets. The majority of shops, malls, cafes, restaurants, cinemas, boutiques etc. belongs to the Private sector.
The second sector of the economy is even as big as the first one and also includes lots of elements – it is the Public Sector. The Public Sector is the sphere mainly controlled by the government because it is often unprofitable and requires great amounts of money to function. Post, Health and Housing services are good examples of the public sector elements. The government also invests money into public places such as parks, maintains the army, builds roads and railroads.
But there are also businesses which can be run both by the government and by private entrepreneurs as well. For example the Russian Railways company belongs to a private sector and is a bright example of private company serving approximately everyone in the country, who travels by train.
I am sure that it might be a very good idea, if private entrepreneurs took part in the spheres canonically controlled by the government. I mean that the government doesn’t have to compete with anybody, and business struggle is the engine for progress. So the involvement of private companies in social services sector may have a favorable effect on the quality of goods and services provided.
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