The public sector includes those services that are considered to be essential and hence made available to all citizens of a country by its government. Typically, services are provided free or at greatly subsidised prices, with the costs being made up by money from taxes.

The earliest recorded instance of such a system was during the eleventh century, when Wang Anshi pioneered state-funded pensions and unemployment benefits. Nonetheless, the idea has always had its opponents and has stopped and started through the ages; the current system of public services in the UK did not assume anything like its current form until the twentieth century, under David Lloyd George. Additionally, the government's remit and the range of services provided or funded by the state has been in a state of near-constant flux and compromise since that time.

Many people feel strongly about the importance of guaranteed, free, high-quality public services to fulfil fundamental needs such as basic housing, healthcare, education and policing as well as a clean, safe environment. There are reactionary and libertarian arguments against these projects, as well as financial benefits which come from being controlled by the government and funded by taxpayers. Essentially the system is a form of organised altruism, and its social benefits are generally acknowledged when quantified by studies and statistics.

The question of nationalisation or privatisation - of who, precisely, should provide essential services, and how, is a controversial one and is frequently debated. Some argue that public services should always be publicly owned, as this allows for greater stability, accountability and for the majority to have some control over the way in which they are handled through political means such as lobbying and elections. Public ownership may make services more financially stable as they are not threatened by the fluctuations of the free market. It also means that private companies can't profit financially from the provision of basic necessities, or use them to further ulterior motives which may not be in the best interests of users - for example, many people are concerned about the possible suppression of science teaching in schools sponsored by evangelical Christians.

On the other hand, it has been argued that government ownership can be inefficient, expensive and unprofitable and that management within the public sector lacks thoroughness and understanding which may be gained from working in competitive industries. The accountability and regulation of government bodies has been called into question, with critics claiming that the government may deliberately over-staff the public sector in order to reduce national unemployment figures and boost its political standing.

Proponents of public services outsourcing propose that the expertise and best-practice knowledge of managers and logistics professionals from the competitive world of private business can be successfully transferred to the public sector in order to improve the quality and efficiency of public services. This gives rise to ‘public-private partnerships' which aim to be more accountable and flexible than pure privatisation; and although very much a fledgling sector, early successes have already been realised.

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