Podcast
Questions and Answers
Which statement reflects a primary difference between public and private sector business administration?
Which statement reflects a primary difference between public and private sector business administration?
- Public sector administration prioritizes collective ownership and societal well-being, while private sector administration emphasizes individual or group economic interests. (correct)
- Efficiency in output is the primary goal of public administration, while private sector firms focus on legal and normative limits.
- Public sector organizations primarily serve economic interests, whereas private sector firms focus on societal well-being.
- Private sector firms are characterized by collective ownership, while public sector administration involves individual ownership.
How does the concept of 'public' in public administration influence its operations?
How does the concept of 'public' in public administration influence its operations?
- It restricts public administration to only serving universal needs, ignoring specific cultural or social contexts.
- It compels public administration to prioritize communal needs, open access, and unrestricted services for society's welfare. (correct)
- It allows public administrators to act independently of societal needs, responding only to governmental directives.
- It guides public administration to focus solely on individual actions rather than collective efforts.
In the context of public administration, what does the state's collective authority entail?
In the context of public administration, what does the state's collective authority entail?
- The state uses its authority to serve the interests of the government, disregarding citizen input.
- The state employs its power to undermine citizen input when implementing policies.
- The state possesses the legitimate power to create policies with collective input that are binding for the well-being of citizens within its geographical boundaries. (correct)
- The state operates outside the influence of its citizens when adjudicating policies.
According to Rosenbloom et al. (2022), what best explains the fundamental aim of private sector firms?
According to Rosenbloom et al. (2022), what best explains the fundamental aim of private sector firms?
How do high-quality regulations and essential public services enhance the private sector?
How do high-quality regulations and essential public services enhance the private sector?
What conditions did John Harris suggest were necessary for a state to achieve successful economic growth?
What conditions did John Harris suggest were necessary for a state to achieve successful economic growth?
According to Harris (2006), which set of mechanisms is crucial for fostering a positive relationship between business and government?
According to Harris (2006), which set of mechanisms is crucial for fostering a positive relationship between business and government?
Why is credibility important in the relationship between the state and capitalists?
Why is credibility important in the relationship between the state and capitalists?
What is the primary goal of the Business Ready (B-READY) Assessment Project?
What is the primary goal of the Business Ready (B-READY) Assessment Project?
How does the regulatory framework pillar of the Business Ready assessment impact businesses?
How does the regulatory framework pillar of the Business Ready assessment impact businesses?
Why is the establishment of entities like the Registrar-General Department (GRA) crucial for business activities?
Why is the establishment of entities like the Registrar-General Department (GRA) crucial for business activities?
How does operational efficiency as a pillar of business readiness directly benefit private sector firms?
How does operational efficiency as a pillar of business readiness directly benefit private sector firms?
According to the Top Performing Economies by Pillar (2024) ranking, what is one way that Rwanda excels?
According to the Top Performing Economies by Pillar (2024) ranking, what is one way that Rwanda excels?
In what way does public administration impact international trade for private sector businesses?
In what way does public administration impact international trade for private sector businesses?
How might a country’s approach to 'dispute resolution' impact its attractiveness to private sector investment?
How might a country’s approach to 'dispute resolution' impact its attractiveness to private sector investment?
What role do utility services play in supporting private sector operations?
What role do utility services play in supporting private sector operations?
How does public administration influence market competition?
How does public administration influence market competition?
Why do governments facilitate business entry for private firms?
Why do governments facilitate business entry for private firms?
What is the role of public administration regarding labor in the private sector?
What is the role of public administration regarding labor in the private sector?
How does taxation managed by public administration affect private sector businesses?
How does taxation managed by public administration affect private sector businesses?
How does the Business Insolvency framework, managed by public administration, contribute to economic environment?
How does the Business Insolvency framework, managed by public administration, contribute to economic environment?
How can public administration facilitate Financial Services for the private sector?
How can public administration facilitate Financial Services for the private sector?
How can governments play a positive role in contributing to broader economic development?
How can governments play a positive role in contributing to broader economic development?
How does "Business Location" affect private businesses and what can public administration do to provide ideal business locations?
How does "Business Location" affect private businesses and what can public administration do to provide ideal business locations?
Flashcards
Public in Public Administration
Public in Public Administration
Ways people act together with collective ownership, communal access, and unrestricted use.
The State
The State
An organization with officials, rules, and agencies given authority by citizens.
Economic Interests (Private Sector)
Economic Interests (Private Sector)
Firms best serve society by pursuing their own economic interests.
Efficiency in Outputs
Efficiency in Outputs
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Profit Orientation
Profit Orientation
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Government's Role
Government's Role
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Positive Environment for Investment
Positive Environment for Investment
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Prevention of Rent-Seeking
Prevention of Rent-Seeking
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Transparency
Transparency
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Reciprocity
Reciprocity
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Credibility
Credibility
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Trust
Trust
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Regulatory Framework
Regulatory Framework
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Operational Efficiency
Operational Efficiency
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Public Services
Public Services
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B-READY Goal
B-READY Goal
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Study Notes
- Session 5 explores the relationships between public administration and the private sector.
- It is expected upon completion to understand the differences between public and private sector administration, their relationships, and how public administration supports private sector growth
Public vs. Private Administration
- Public administration has collective ownership
- Private administration has individual/group ownership
Meaning of Public
- Public includes the ways people act together or collectively, according to Frederickson (2021).
- These actions aim to achieve basic needs and well being.
- Human basic needs are universal across cultures, ages, and social contexts.
- Public involves collective ownership, communal access, and unrestricted use.
The State
- The state is an organization with officials, rules, and agencies.
- Citizens grant the state collective authority.
- The state can exercise legitimate monopoly of final authority and coercion.
- Powers are used to create, implement, and adjudicate policies for citizens' welfare within a geographical boundary.
Private Sector Characteristics
- Rosenbloom et al (2022) pinpointed key characteristics differentiating private firms from public administrations
- Private sector firms believe that vigorously pursuing their own economic interests is the best way to serve society.
- Private sector businesses exist to be highly efficient and competitive in their production of goods and services.
- Profit is a motivator in private business, considered a positive social and economic good when within legal/ethical limits.
Public Administration's Role
- Governments enhance firms’ operational efficiency and profitability by enacting high-quality regulations.
- Governments provide essential public services and contribute to broader economic development and social well-being.
How States Support Economic Growth
- John Harris argues that successful economic growth requires two activities from the state
- States must create a positive environment for private investment.
- Capitalists or business people need to trust their activities will be supported by the government.
- States should prevent rent-seeking.
- Rent-seeking is defined as collusion between individual business people and agents of the state.
Positive Environmental Mechanisms
- Harris (2006) stated four mechanisms needed between business and government for economic growth
- Transparency involves the flow of accurate, reliable information between business and government.
- Reciprocity includes the likelihood of mutual exchange between business and government.
- State actors need the capacity and autonomy to secure improved performance in return for subsidies.
- Credibility requires the state to ensure capitalists believe what state actors say.
- When state actors command credibility, they are likely to respond flexibly without losing business confidence.
- Trust is achieved through transparency, reciprocity, and credibility.
Business Ready (B-READY) Project Objective
- To enhance global private sector development by improving regulatory frameworks, and public services.
- Additionally it seeks to improve operational efficiency.
Three Pillars of B-READY Assessment
- Regulatory Framework covers the rules and regulations businesses must follow to open, operate, and close.
- Public Services involves government facilities and infrastructure that support business activities.
- Operational Efficiency involves private sector businesses ease of compliance.
- It also involves the effective use of public services.
Public Services Infrastructure
- The facilities that governments provide to support compliance with regulations.
- These include necessary institutions and infrastructure for business activities.
- Examples: Registrar-General Department, GRA.
Operational Efficiency
- Involves the ease of compliance with regulatory frameworks
- And the effective use of public services directly relevant to firms.
- Examples: Ease of Business registration with the Registrar-General Department.
Top Performing Economies by Pillar (2024)
- Pillar I (Regulatory Framework): Hungary ranks 1st (78.23), Ghana ranks 25th (66.91)
- Pillar II (Public Services): Estonia ranks 1st (73.31), Ghana ranks 30th (47.67)
- Pillar III (Operational Efficiency): Singapore ranks 1st (87.33), Ghana ranks 39th (54.42)
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