ABSTRACT

Any strategy which focuses on developing the productive forces of a national economy and is at the same time geared to the world market as its frame of reference requires a far-reaching and thorough redefinition of the relationship between the public and private sectors. This requires the initiation of a process that strengthens market forces and increases the latitudes available to develop private initiative. This process above all entails examining the role of the public sector as a supplier of goods and services. This is true for the supply of private goods in competitive markets, the supply of public goods, and industries in which competition is restricted by a natural monopoly.