The role of private sector companies in the primary services sector

Partnership between the public and private sectors is one of the main ways to fund public services that otherwise present a considerable burden on the national budget.

Over the past few years, Egypt’s former regime leaned towards privatisation policies and laissez-faire market practices, where few select public services were provided by private sector companies. However, the state still remained in charge of providing basic services such as water, health, and education.

There has been more vocal support of privatisation of public sectors, such as the water sector, with the argument that the state is unable to afford its costs alone, which have led it to recession.

However, opponents believe that public and primary services such as water, health, and education are obligations that lie on the state alone. Private sector companies mainly aim for profit without paying heed to the social dimension. Hence, they argue that expanding the private sector’s role could put workers’ and citizens’ rights at risk, making them vulnerable to exploitation by business owners.

 


Retrieved 16 August 2011, "Privatisation of the water sector" written by Saheb El-Rab'ee