Explain how public sector conributes to the economic development of a nation
Answers
If the public sector is distant from a nation (socially) then there will be very less new entrepreneurs and hence very less new businesses. Also there will be a decrease in the no. of workers in factories
It contributes in the following ways
1. It promotes rapid economic development through creation and expansion of infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It is ensuring equality of income, wealth and thus, a balanced regional development.
5. It encourages development of small, medium and cottage industries .as ancillaries.
6. It ensures easy availability of goods at moderate rates.
7. It contributes to community development i.e., to the Human Development Index (HDI) via health and educational services.