What Are Public Sector Industries?

The public sector can be called that part of the government which primarily deals with delivering goods and services. Public sector industries are those which are run as well as owned by the government. Public sector activity is varied and includes national defence, social security and urban planning. There are several forms that public sector (public ownership) assumes. These include direct administration (which is funded through taxation); Publicly-owned corporations; and Partial outsourcing. However, the concept is gradually losing its importance and not may western countries still run major public services like transport or fuel production. Governments tend to sell their assets for short-term gains, but these public industries are vital and there are long term implications that need to be considered. Some arguments for public sector industries include accountability, equity, consumer interests and common good. There are many who feel that among other things it sounds a waste and may lead to bad investments/over-investment and that it can be influenced by politics.