Anupam- The Dreamer

And do they share any commonalities?

This is an issue of debate in our country and in abroad since last few decades. In the domain of public administration, this issue of government vs. private sector OR government and private sector has gained prominence in the academic domain. But, here I will discuss from my own experience in the private sector vis-à-vis government sector. So, let’s begin….

The first and foremost thing for the existence of any organization is its vision/mission/goals. Here lies the single largest difference. The private sector has only one primary goal- TO MAKE PROFITS! And more profits! It is the sole factor that determines whether a private company will exist for long or would be wound up in the next few years! You may say that it is not the only goal of a company, as they also focus on generation of employment, some CSR initiatives (although let’s be candid that most corporates don’t do CSR on their own, unless they are arm-twisted by the CSR law to spend 2% of their average annual profits of the last 3 years on social welfare initiatives), infrastructure creation etc. Yet, one thing cannot be denied that all of this flows from “profits” only!!! If the company does not make profits, it will not survive in the first place, and if it does not survive, then how will it spend on other things to meet other goals?

Now, take the case of the government sector. The government has umpteen goals, which are difficult to be counted even. Some of them are- welfare of citizens, provision of goods and services to every citizen at affordable prices (like PDS shops, trains, subsidies to poor), infrastructure creation, providing employment to every section of the society (unlike private sector which harps only on employing talented and skilled people), social welfare measures for weaker sections of the society, wealth creation, internal and external security of the nation, ensuring financial stability in the nation, maintaining good relations with other countries for national interest, protecting the scarce resources like water, preservation of forests and wildlife, ensuring sustainable development etc. etc. The profits are not the only criteria here! Whether the govt exchequer makes money from its enterprises or not, the government cannot abdicate its responsibility towards its citizens. This makes the task of the government and the government officials more complex, more impactful and at the same time more accountable to the citizens. Even if the government is not earning surplus revenue, it cannot leave its employees, or the common people on their own mercy. The government has to provide for the every stakeholder to the best of its capacity.

The next difference that is easily noticeable is the functions and processes. In the private sector, the hierarchies are relatively less, the work processes are relatively simpler, and stakeholders involved are less, accountability is primarily only towards the business owners, shareholders and the governing body. Therefore, the decision-making is faster, as you have to take into account a limited number of factors for the decision-making process.

In contrast, the government involves big hierarchies, the work processes are relatively complex due to multiplicity of laws, rules, circulars, notifications, other laws that have implication on a particular law, multiple stakeholders like citizens, private sector, media, NGOs. Further, a government official is accountable to a lot of people- to the Constitution of India, to the legislature (Parliament), to the government itself, to the people of this country, to the judiciary (courts), to a number of Constitutional bodies etc. Any action done by a government official at one point of time, can have multiplying implication, way into the future e.g. One policy decision made or one policy implemented now, can show a large impact even after tens of years on the people. And whatever decision or action that one commits/omits today, can come to hound the executing official till his/her grave. So, the stakes of taking a decision are much higher in the government. One can say, that it is also high in the private sector, but it is not actually so. Let me demonstrate by a simple example. Suppose, somebody takes a wrong financial decision in a private sector that results into revenue loss to the company, what worst could happen to him/her? He will be reprimanded by seniors, or has to forgo promotion, or no bonus, or at the most- job loss! Now, take this situation in government sector. The erring official will not only be reprimanded, but also can be transferred, or disciplinary proceedings be initiated against him/her like suspension etc., promotions halted for life, proceedings under Prevention of Corruption Act, BNS, CBI case, etc. The ease with which a private employee can leave the organization is not available to the government official. Infact, you would not be allowed to leave, if you commit some error in judgement. And in a way, it is justified as the stakes and the responsibility that a government official deals with is much much higher than a private company employee.

The next difference is in the composition of the workforce. The private sector employees only talented and skilled people in the organization. You have to be efficient, effective and economical. Otherwise, there is no place for you in the company. But, the government sector has a social obligation to provide employment to all the sections of the society irrespective of gender, caste, religion, region, race etc., whether or not you are talented and skilled. The policy of reservation is a method to provide social inclusion to the citizens. Further, the government has a number of policies to provide employment to many sections on compassionate grounds. It is an endeavour of the government that no person should be left behind while the nation marches in the journey of economic prosperity.

Another difference is in the work processes in the organization. In the private company, almost majority of the work processes are in English, the work classification clearly defined and delineated, the documents available at one place easily, the people working at the same place for many years without transfer, etc. All this makes the work more efficient and easier. Now, take the government sector- the work has to be done in English and Hindi at many places, even in regional languages in many states, which makes the coordination between different departments and people difficult; the work is at times not clearly defined as there are a low of grey areas in the laws, rules etc. which creates difficulty in execution; documents may not be available at one place easily (especially in soft copies as in private sector); the people getting constantly transferred from one place/position to another which hinders institutional memory. All this makes the work much more challenging and demanding. The government officials have to constantly navigate all these challenges amidst several pulls and pressures, and find out innovative solutions if they want to excel in their task.

There are many other differences, but I will restrict my discussion now to be continued later. This is not to say that the people in private sector are not doing a great job, infact in many new technological areas like Artificial Intelligence, renewable energy innovations, software services etc., they are doing much greater things than the people in the government sector. But, still it cannot be denied that the complexity of things in the government sector is much higher in most of the areas as compared to the private companies.

Finally, both are working for the progress and prosperity of the nation in their own ways. They are both complementary to each other and in no way contradictory to each other. Infact, the best practices of the private sector are being employed in the government sector and vice-versa. The private sector is also shouldering the responsibility well beyond its goal of making profit- through initiatives like development of schools, hospitals, green belts, rural infrastructure etc. So, as I see it, there is a need to constantly evolve both of them for betterment in their respective domains. And as we march confidently into the future, we need a strong government and a strong private sector to walk hand-in-hand for making India a developed nation soon.