Saturday, October 30, 2010

Public vs. Private

Governing is a difficult responsibility, especially with declining tax revenues and if the population does not understand the system, whether caused by gaps in the education curriculum or by errors in media pronouncements; rumors rather than facts fueling public opinions. The driving force in a free market economy is ideas; dreams that any citizen can become a leader, imagining that anyone can become a role model and thoughts that every employee can become an employer. Many in public service, an institution that runs on trepidation and nepotism, feel stuck with their ambitions shattered. Yet, these are the people that are empowered to implement policies and facilitate economic development and growth.

Decision-making, through critical or analytical thinking, must consider and plan for implementation problems as a hindrance to progress. For example, the decision to expand the economy requires permissions and licenses, the domain of the public servant, to protect public health and safety, and the environment, by presenting a plan to deal with such issues as, enhancing community living standards and waste treatment and disposal. But, some issues may also require new regulations to be effected, which can be a drawn out process and the opportunity, as most are, maybe time sensitive.

Individual employees’ mindset is always an issue that, whether this person understand the bigger picture or is only concern about they own benefits, will dictate the speed and diligence of their efforts. The private sector employee is trained and encouraged to take the initiative using the facts available to solve problems and is rewarded via promotions when these decision result in enterprise growth. The public service employee is trained and encouraged to protect, gathering all relevant information and pushing any decision towards the politicians presently in office.

Protecting society is not enough, the public servant must serve, explaining why, connecting the dots and showing the rippling effects, both to the politicians and the general public. A nations’ public service must be engaged to both serve and protect the public; setting and enforcing standards and measurements that prevents and limits widespread risk, whether in the health, education, security or financial sectors. The rules must be followed, but the rules must also be explained for all to understand, not just a few.

The Public service is not a shareholder in government owned or control enterprises, these entities are funded by taxpayers and must not be confused with shareholders in publicly traded enterprises. Public servants’ benefits depend directly on taxation policies and tax collections. The major portion of taxes paid comes from business, hence with declining duties, royalties and corporation taxes, public servants cannot get more. Market forces worldwide are forcing cuts in benefits, longer working period for less money, the goal is to get the best price for the best benefits.

Efficiency in social and infrastructural programs, reducing waste, limiting corruption and managed by a Government that understands, only sound ideas articulated in viable strategic plans can restore Business Confidence and hence, generate tax revenues to pay public servants.

Rationale

T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.