Conceptualizing and Contextualizing the Public Sector

The Public Sector Domain

The public sector denotes a section of the economy under the influence and direction of the state.
According to Dube and Danescu (2011: 3) the public sector consists of governments and all
publicly controlled or funded agencies, enterprises, and other entities that deliver public programs,
goods and services. It is part of the economy which includes the business of government at
national, provincial and local level. In other words, it is that sector where the government is the
sole owner of resources used to achieve public ends and demands. In this sector the government
policies are implemented through various ministries, departmental enterprises, parastatals, joint
ventures, public companies, local municipalities, and the public not for profit organizations. The
role of the public sector is not only to implement public policy but also to facilitate agenda setting,
formulation, assessment and evaluation (Nigro 1984). In some countries, the public sector also
engages in business enterprises that include mining, airline, railway operation and banking. Unlike
the private sector, the public sector is earmarked on providing public goods and services. What are
public goods? These are goods that are (non-exhaustible, non-excludable and non-rivalry e.g.
roads, streetlights, defense and waste disposal). These are financed by the public sector because
they have a public good problem captured by Hardin as ‘tragedy of the commons”. They have a
free ‘rider effect’ that is, EVEN those who refuse to pay can still consume and enjoy the benefits.
Parasitic behavior consuming what others paid for at zero cost. It is imperative to note that
public sector activities must be guided by normative considerations or values or principles such as
transparency, accountability, gender sensitivity, efficiency, economy, effectiveness (the 3es),
amongst many.

Development

Development is a contested concept and there have been a number of battles to capture its meaning
(Turner and Hulme 1997: 4). Every nation strives for development. While economic progress is
an essential component for development, it is not the only one. This is because development is not
purely an economic concept or phenomenon. Ultimately it must encompass more than the material
and financial side of human lives (Todaro 1982: 87). Thus, in addition to improvements in incomes
and outputs, it typically involves radical changes in institutional, social and administrative
arrangements, as well as in popular attitudes and sometimes even beliefs and customs.
Development is defined as a multi-dimensional process that seeks to reduce poverty and
inequality, expand the real freedoms that people enjoy, accelerate economic growth, and renewal
of social structures, popular attitudes and national institutions (Todaro, 2000). It is a process
involving reorganization and reorientation of the political, economic, social and technological
aspects of life. Indeed, a central part of the exercise of development is to overcome problems such
as the “persistence of poverty and unfulfilled elementary needs, occurrence of famines and
widespread hunger, violation of elementary political freedoms as well as of basic liberties,
extensive neglect of the interests and agency of women, and worsening threats to the environment
and to the sustainability of economic and social lives (Sen, 1999). It is basically a reform process
that involves the building of capacity and technical innovation towards effectiveness and efficiency
(Rondinelli 1994, Diana 1998). Thus, development essentially involves a process of improving the
quality of human lives with three equally important aspects of life identified by Todaro (1992) as:

(1) Raising the standard of living e.g. income, consumption, medical services, education,
housing through the relevant growth processes.
(2) Creating conditions that are conducive to the growth of peoples self-esteem through the
establishment of social, political and economic systems and institutions which promote
human dignity and respect.
(3) Increasing people’s freedom to choose by enlarging the range of their choice of goods and
services.

Development is a process of building capacity, innovation reform, improving performance,

technical advancement, increased social interaction and affirmative action, political
functionality, bringing about effectiveness and efficiency, modernisation and transformation.

*Todaro, M. (2000) Economic Development, 7th edition (Reading, Mass: Addison-Wesley).

Sen, A. (1999) Development as Freedom (Oxford: Oxford University Press).

Bryant, C. and L. White (1982) Managing Development in the Third World

(Boulder, CO: Westview).

Public Sector Development

 Is a reform process meant to bring about effectiveness and efficiency in the public sector.
It involves strengthening the operations of the public sector to achieve the following:
1. effectiveness and efficiency
2. innovation
3. transformation
4. capacity building
5. modernisation
6. democratisation and good governance
7. Transparency and accountability
 This entails fostering sound performance in government ministries, public enterprises
(departmental public enterprises, parastatals, public companies, joint ventures), local
municipalities and the public not for profit organisation towards the edge of high
production and the attainment of public policy objectives.