Public vs. Private Sector Administration

• This session aims to impart an understanding of the differences between public and private sector administration, their relationship, and how public administration supports private sector growth.

Public Administration vs Private Sector Business Administration

• Public administration involves collective ownership, while private sector business administration involves individual or group ownership.

Meaning of 'Public' in Public Administration

• Public includes the many ways people act collectively
• People work together to meet basic, universal needs across cultures and ages.
• Public refers to collective ownership, communal access, and unrestricted use.

The State

• It's an organization with officials, rules, and agencies with collective authority from citizens.
• It possesses a legitimate monopoly of final authority and uses coercion.
• It makes, implements, and adjudicates binding policies for the well-being of citizens within set boundaries.

Key Characteristics of Private Firms

• Rosenbloom et al (2022) identified these
• Economic interests: They aim to serve society by pursuing economic interests in the marketplace.
• Efficiency in outputs: They produce goods and services efficiently and competitively.
• Profit orientation: Profit is a motivator and a positive socio-economic factor within legal and ethical bounds.

Public Administration's Role

• Governments enhance operational efficiency and profitability by enacting high-quality regulations and offering key public services.
• This contributes to broader economic development and social well-being.

Economic Growth Factors

• John Harris argued that successful economic growth needs two state activities
• Creating a positive environment for private investment to assure capitalists their activities are supported.
• Preventing rent-seeking (collusion between business people and state agents).

Positive Environmental Mechanisms

• Harris (2006) specified four mechanisms needed between business and government for economic growth
• Transparency: Ensuring a clear flow of reliable information between business and government.
• Reciprocity: Establishing likely reciprocity between business and government, where state actors can secure better performance for subsidies.
• Credibility: The state must ensure capitalists can believe state actors and respond flexibly to changing circumstances.
• Trust: Achieved through transparency, reciprocity, and credibility.

Business Ready Assessment Project

• Its objective is to enhance global private sector development via improved regulatory frameworks, public services, and operational efficiency.

Three Pillars of Business Ready Assessment

• Regulatory Framework: Rules firms must follow to open, operate, and close.
• Public Services: Government facilities and infrastructure that support business activities.
• Operational Efficiency: Ease of compliance and effective use of public services.

Public Service Infrastructure

• These are government-provided facilities supporting compliance with regulations, institutions, and infrastructure.
• An example: The establishment of the Registrar-General Department (GRA).

Operational Efficiency

• The ease of compliance with the regulatory framework and effective use of relevant public services.
• An example: Ease of business registration with the Registrar-General Department

Top Performing Economies by Pillar (2024)

• Hungary leads in Regulatory Framework (78.23), followed by Portugal and Georgia.
• Estonia is top in Public Services (73.31), followed by Singapore and Croatia.
• Singapore excels in Operational Efficiency (87.33), followed by Georgia and Rwanda.
• Ghana's rankings: 25th in Regulatory Framework (66.91), 30th in Public Services (47.67), and 39th in Operational Efficiency (54.42).