One of the most popular and least imaginative criticisms of the public sector is that it is less efficient than the private sector. Since the late 1980s, the fetishisation of private sector practices has eroded public sector outcomes and value in the name of KPIs, specialisation and short-termism.
This is a shame and a mistake.
Over next few weeks, I will use Wednesday Wisdom to bust a few myths about the public sector. If you're in the public sector, this might help you feel better. If you're in the private sector, it might be interesting or enlightening.
(If you're in the third sector you have all of our love and support because you're serving two masters and pleasing neither of them, similar to a working parent who tries to do their job as though they have no kids and parent as if they have no job and that sh*t is hard.)
Myth 1: The private sector would do government projects faster or cheaper, so we should outsource or privatise
The public sector is often criticised for being slow and underperforming compared to the private sector, but the evidence doesn’t support this argument. According to an international literature review, there’s no proof that the private sector is any more efficient than the public sector. When tackling problems like health and social care, electricity, water, transport, waste management, or telecommunications, the public and private sectors produce similar results.
Addressing important social issues is more difficult and demanding than providing consumer goods and services. Professor Simon Collinson, creator of the Global Simplicity Index, discovered in 2012 that UK public sector organisations are 30% more complex than some of the world’s largest companies.
This complexity is not due to inept bureaucrats but rather the nature of the work, the challenges to be resolved, and the demands of democracy. While operational decisions might be complicated, strategic decisions are often complex, with many moving parts and technical considerations. The public sector isn’t slow; it’s tricky.
Stay tuned for next week, when we'll talk about how capitalism has fooled us all into thinking that maximising profits for some faceless rich dude is the ultimate measure of success.
Til next week,
AM
Alicia McKay