The Webster's dictionary (Guralnick, 1986)
traces the origin of the word 'public' to the Latin word
for people, and defines it as ‘referring to matters
pertaining to the people of a community, nation, or
state’. By contrast, the word 'private' is derived from
the Latin were meaning ‘depriving or setting apart’.
The distinction between public and private and their
relationship spheres has been a theme of debate
for many decades. Many traditionalists regard the
public and private domains as having fundamental
differences and distinctive functions that ought to be
kept distinct. The simple dichotomy of public and private
organisations was previously used in literature to make
a coherent and reasonably clear distinction between
the activities that belong to the public sector and those
that belong to the private sector. Samuelson (1954),
for example, defines the public sector as producing a
'public good', preventing and correcting market failures,
and redistributing wealth ; whereas, the private sector
is supposed to do everything else. More generally, a
fundamental basis for distinguishing public and private
sectors is concerned with organisational aims and
typical functions as executed by each organisation.
The adherents of this view maintain that a public sector
focus would stress elements such as equity, fairness, and
the rule of law in handling public provisions. Conversely,
the private sector would focus on cost-benefit analysis,
effectiveness, and efficiency in performing its business
The Webster's dictionary (Guralnick, 1986)traces the origin of the word 'public' to the Latin wordfor people, and defines it as ‘referring to matterspertaining to the people of a community, nation, orstate’. By contrast, the word 'private' is derived fromthe Latin were meaning ‘depriving or setting apart’.The distinction between public and private and theirrelationship spheres has been a theme of debatefor many decades. Many traditionalists regard thepublic and private domains as having fundamentaldifferences and distinctive functions that ought to bekept distinct. The simple dichotomy of public and privateorganisations was previously used in literature to makea coherent and reasonably clear distinction betweenthe activities that belong to the public sector and thosethat belong to the private sector. Samuelson (1954),for example, defines the public sector as producing a'public good', preventing and correcting market failures,and redistributing wealth ; whereas, the private sectoris supposed to do everything else. More generally, afundamental basis for distinguishing public and privatesectors is concerned with organisational aims andtypical functions as executed by each organisation.The adherents of this view maintain that a public sectorfocus would stress elements such as equity, fairness, andthe rule of law in handling public provisions. Conversely,the private sector would focus on cost-benefit analysis,effectiveness, and efficiency in performing its business
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