Monopoly in government due mandated legalities that constrain to compete with the private sector in the production of goods and services is a continuing issue. The issue basically brings a negative understanding for the reason that the economy would be put into substantial disadvantages. This reason could be only one among other negative understanding attributed to the legal constrain of government in delivering the services and competing with the private sector.
In a case study of Dennis A. Rondinelli (2002), the public-private sector partnership was emphasized as integral to the fast-changing economic development in the 21st century. Based on past and present economic situations, government goods and services are hampered to be delivered and utilized by majority of the citizenry, while the private sector effortlessly produce and deliver the same goods and services.
Rondinelli (2002) pointed out that industries of the private sector compete with the government’s servicing, like for transport facilities, telecommunication system, electricity, water distribution and other utilities are among the basic requirements of the citizenry aside from other welfares. Based on the case study of Rondinelli, the urgent circumstance of globalization has extensively impacted the private industries to act at a flexible-phase to be competitive, from which the private sector has invested in key strategic service-industry.
The service-industry has transpired to be more demanding in terms of technological advancement, public conveyance or transportation facilities and telecommunication system (Rondinelli, 2002). In this regard, the case study concluded that the technology adoption, public conveyance facilities and communication are vital for the government to reconsidering a synergy through public-private partnership that would achieve substantial economic benefits. The public-private partnership can be perceived to empower an industry that requires additionally valued services coming from both public and private sector.
Based on the case study, it may be also understood that competition can be endured by the private sector, but the governmental support is needed in terms of establishing a business policy environment that would provide flexibility for the industry to acquire a competitive edge or accessibility in the global market. Another consideration to be addressed in the public-private partnership is the importance of economic sustainability, in which the private sector can have the capability to “pump-prime” the aspect of production by developing a market demand.
This means, propelling the domestic production would provide market opportunities, translating into job generation and increase in gross domestic production (GDP). The structure of the economy which can be created under the public-private partnership would likewise enable revenue generation. In which case, failure to revitalize the country’s revenue or tax base system would mean a decline of services, wherein the government’s budget for such services emanates from the revenue collection.
Moreover, Rondinelli (2002) has firmly expressed the key strategies in “harmonizing the government cum private services”. To cite, the government and private sectors must strategically cooperate on major services which would be required by leading industries, such as on infrastructural support relevant to marketing of commodities, post-harvest facilities to value-add the products, and Build-Operate-Transfer (BOT) scheme that would provide self-sufficiency, displace monopoly and achieve sustainable benefits (Rondinelli, 2002).