Comparative Analysis Between The Public Sector And The Private Sector In Romania

The public sector is put in competitive relationship with the private sector. The borders between the public and the private sector, although not always well delimited, are in motion, their variation being decided by the society itself, as a result of the victory in elections of the different political currents. It goes without saying that the increase of the public sector implies the increase of the volume of public expenditures and, through this, an increase of the state's involvement in the economic and social life. The problem of expanding the public sector in relation to the private one is still kept on a field of disputes with a strong ideological load. The classical liberals support the expansion of the private sector and the drastic restriction of the public sector in order to ensure individual freedom and economic efficiency, and the traditionalist socialists claim the generalization of the public sector in order to ensure equity. The scientific analysis of the problems regarding the public sector in relation to the private one is important and current for at least four reasons: to explain the main causes of the expansion of the public sector in the market economies, to dimension the public sector based on objective, scientific criteria. to define the structure and functioning mechanisms of the public sector, to discover and reveal the negative effects and failures of the public sector.