The private sector is well-known for its efficiency but is also negatively viewed for its greed and an inherent nature that lacks focus on welfare. The public sector is considered to work for the benefit of the people but is often cited as being inefficient and wasteful.

The private sector has a profit motive, and the end goals are to maximise return to shareholders while the public sector has the mandate to improve the entire nation, especially protecting the toiling masses. However, such age-old stereotypical views are changing and new ways of working together have already emerged.

Conscious capitalism

The term "conscious capitalism" is referred to a socially responsible economic and political philosophy and it is a growing movement all over the world that seeks to correct the idea that the private sector exists in vacuums and only focuses on improving shareholder value. However, everything that happens in a nation ranging from political changes to policies undertaken by the government affects private businesses since the private sector must also exist and function in that nation.

For example, when private sector businesses dump chemicals in water bodies, it adversely impacts the environment and harmfully affects the very population that buy products from the private sector. Also, if the private sector does not support the public sector in educating the country or improving the health of the workforce, they would not get the skilled and healthy employees they require to operate.

Primary requirements for a successful combination

Now the question arises as to how the private and public sectors may succeed in working seamlessly with each other such that the objectives of both sectors may be attained in Bangladesh.

Clear delineation of roles - Efficiency is one of the strongest attributes of the private sector and could be its most important contribution. Metrics such as business process optimisation, risk analysis, accountability management and KPI measurement are some key areas the private sector can help in. The public sector, for its part, must ensure that the delivery optimisation of services by the private sector is taking place in a way that is equitable and everyone is being benefitted. In other words, if the private and public sectors are to combine successfully, then each must be assigned the specific roles in which they are the best.

Alignment of goals - For a partnership between the private and public sectors to succeed, the end goals and outcomes must be consistent and acceptable for both. The private sector must be able to gain from the exchange, whether by positive publicity or gaining business benefits (e.g., skilled workforce, better infrastructure, improved public health, meaningful incentives, and increased buying capabilities/demand). Similarly, the public sector must also achieve gains by being viewed more favourably by the nation's citizens due to the nationally beneficial results it achieves.

Building trust - It is important that both sectors gain the confidence and support of the people in carrying out their functions and achieving their objectives. Unless people can be made to trust that the public-private collaboration is for their benefit, they will reject it. Therefore, meaningful results need to be achieved quickly which will convince the average person of the need for such ventures. This means planning for the short and the long term with clear deliverables that are not abstract, and the layperson can appreciate.

Public-private partnership

The public-private partnership is a long-term effort and there are certain areas that acutely require such a partnership and some of these are discussed further from a Bangladesh perspective.  

Nationwide economic development - Areas outside of Dhaka and a few other major cities remain largely underdeveloped and this represents a major lost opportunity. If the private sector is incentivised to invest in these areas, it would be a great prospect to build a market and a presence in these places while also helping the government develop these areas. The major cities of Bangladesh are getting saturated and in order to increase consumer demand and business growth, there is a need for developing markets across Bangladesh and beyond the major cities. Such a unification would be an alignment of goals for both sectors.

Education - Although the government has made massive strides in providing education in remote areas, the quality of public education is still considered to be inadequate. The private education sector currently does not fully focus on areas outside of Dhaka and Chattogram due to the difficulty of turning a profit in areas where people would not be able to afford the higher tuition costs. Therefore, the public sector needs to encourage and motivate the private sector to operate schools outside of the major cities by providing operational and financial incentives such as tax breaks and the availability of better educational infrastructure. While the models may be decided later, the immediate idea and focus is for the two to play to their strengths.

Healthcare - Like education, the quality of healthcare and the availability of medical resources and technology outside of the major cities in Bangladesh are not nearly where they should be. Too many patients need to travel long distances to the major cities, especially Dhaka to avail the proper care needed. This again leads to lost opportunities for the private sector to serve and earn across the country and for the public sector, it is an increase of the burden of overall economic inefficiency, which hampers its development objectives. A public-private combination to increase the availability of proper healthcare nationwide would benefit both parties.

Rising above past views

The private sector is often guilty of viewing public officials as largely inefficient people who cannot get the job done without indulging in time-wasting bureaucratic procedures. Inversely, the private sector is perceived as a breeding ground for greedy executives who cannot see past their bottom line and cannot envision how their responsibilities could range beyond maximising profit.

To bridge this gap and overcome past views, Bangladesh needs positive examples of business leaders who do not just care about the bottom line but rather about their people and the impact that they are having on the environment. Bangladesh also needs examples of government officials who are spearheading initiatives that are changing the nation and overcoming roadblocks posed by ancient bureaucracies. There should be no place within the public sector for obstructionist officials who constantly resist change and innovation.

The primary aim must be to unite towards the achievement of the goals of both the private and public sectors. If the public sector wants better economic and social development beyond the major cities, then they must help create the conditions where the private sector can flourish and would want to invest. Similarly, the private sector must accept that they cannot work without the government's support and hence, be willing to align and work together.

The author is an economic analyst