Public Vs Market oriented development

1
Group 1

• Public Vs Market oriented development
• Mustafa Talpur, Mushtaq Ahmad, Raza Ahmad,
  Sahibzada Irfanullah

2
Characteristics of market/public based
development

• Market cares about efficiency and not equity
• Market mechanism on itself is not capable to
  trickle down the benefits to grassroots level
• Market does not feels social responsibility
• Market growth implies on public sector to work
  under pressure for its survival.
• Private sector is less accountable for its
  services

3
Characteristics of market/public based development

• Efficient allocation of resources (private
  sector)
• Greater competition in market leads to benefit
  for consumers (quality, quantity, prices)
• Public sector involves greater hierarchy,
  corruption and red tapism
• Private sector is an engine of economic growth.

4
Policy Options

• Public sector should ensure equitable and
  inclusive economic growth
• Public sector to provide effective regulatory
  framework.
• Basic entitlements should be subsidized.
• Government should facilitate the private sector
  (to minimize the cost of investment).
• Governance institutions should be strengthened.

5
Conclusion

• In a developing country like Pakistan, public
  sector is critical for poverty eradication.