The public sector, sometimes referred to as the state sector is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government A government is the body within a community, political entity or organization which has the authority to make and enforce rules, laws, and regulations.[citation needed] or its citizens, whether national, regional Region is most commonly a geographical term that is used in various ways among the different branches of geography. In general, a region is a medium-scale area of land or water, smaller than the whole areas of interest , and larger than a specific site. A region may be seen as a collection of smaller units (as in "the New England states") or local Local government refers collectively to administrative authorities over areas that are smaller than a state. The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government. "Local government" only acts within powers delegated to it by/municipal A municipality is an administrative entity composed of a clearly defined territory and its population and commonly denotes a city, town, or village, or a small grouping of them. A municipality is typically governed by a mayor and a city council or municipal council.
Examples of public sector activity range from delivering social security Social security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:, administering urban planning Urban, city, and town planning integrates land use planning and transport planning to improve the built and social environments of communities. Regional planning deals with a still larger environment, at a less detailed level and organizing national defenses Personal defence implies measures taken by individual soldiers in protecting themselves whether by use of protective materials such as armor, or field construction of trenches or a bunker, or by using weapons that prevent the enemy approaching them to initiate close combat. In close combat where blade weapons are used, defence refers to a specific.
The organization of the public sector (public ownership Public ownership refers to state ownership or control of any asset, industry, or enterprise at any level, national, regional or local (municipal); or to common (full-community) non-state ownership. The process of bringing an asset into public ownership is called nationalization or municipalization. There is a distinction to be made between state) can take several forms, including:
- Direct administration funded through taxation To tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law; the delivering organization generally has no specific requirement to meet commercial Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities. Commerce functions as the central mechanism which drives capitalism and certain other success criteria, and production decisions are determined by government.
- Publicly owned corporations Corporatization refers to the transformation of state assets or agencies into state-owned corporations in order to introduce corporate management techniques to their administration. Corportaization is sometimes a precursor to partial or full privatization, which almost always refers to a process by which formerly public assets or functions are (in some contexts, especially manufacturing, "state-owned enterprises A government-owned corporation, state-owned enterprise, state enterpise, or government business enterprise is a legal entity created by a government to undertake commercial activities on behalf of an owner government, and are usually considered to be an element or part of the state[citation needed]. There is no standard definition of a government-"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government).
- Partial outsourcing Outsourcing often refers to the process of subcontracting to a third-party. While outsourcing may be viewed as a component to the growing division of labor encompassing all societies, the term did not enter the English-speaking lexicon until the 1980s . Since the 1980s, transnational corporations have increased subcontracting across national (of the scale many businesses do, e.g. for IT services), is considered a public sector model.
A borderline form is
- Complete outsourcing Outsourcing often refers to the process of subcontracting to a third-party. While outsourcing may be viewed as a component to the growing division of labor encompassing all societies, the term did not enter the English-speaking lexicon until the 1980s . Since the 1980s, transnational corporations have increased subcontracting across national or contracting out, with a privately owned corporation delivering the entire service on behalf of government. This may be considered a mixture of private sector operations with public ownership of assets, although in some forms the private sector's control and/or risk is so great that the service may no longer be considered part of the public sector. (See the United Kingdom The United Kingdom of Great Britain and Northern Ireland[note 7] is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land border, sharing's Private Finance Initiative The private finance initiative is a method to provide financial support for "public-private partnerships" (PPPs) between the public and private sectors. Developed initially by the Australian and United Kingdom governments, PFI has now also been adopted (under various guises) in Canada, the Czech Republic, Finland, France, India, Ireland,.)
In spite of their name, public companies A public company or publicly traded company is a company that has permission to offer its registered securities for sale to the general public, typically through a stock exchange, or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services are not part of the public sector; they are a particular kind of private sector In economics, the private sector is that part of the economy which is both run for private profit and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector company that can offer their shares for sale to the general public.
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