Characteristics of the public sector
In order to fulfill its wide range of functions, the public sector must satisfy a complex range of political,economic, social, and environmental objectives. This subjects it to a different set of external and internal constraints and incentives from those in the private sector, all of which affect its governance arrangements.
Generally, the main objective of public sector entities is to achieve outcomes—enhancing or maintaining the well-being of citizens—rather than generating profits. Public sector entities often:
have a coordinating and leadership role to draw support from or foster consensus among all
sectors and society;
possess the power to regulate entities operating in certain sectors of the economy to safeguard and promote the interests of citizens, residents, consumers, and other stakeholders and to achieve sustainable benefits; and
undertake activities on a basis other than by fair exchange between willing buyers and sellers
because they have the ability to exercise sovereign powers. For example, pursuing social policies may sometimes call for issues of equality and fairness to be given greater weight than financial performance.
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