Abstract

According to the most widespread definition, public services serve public interests and are provided by the government. The state is often held accountable for these services. However, not all public sector services will be considered here. Some services, such as the police, the legal system, crisis management, etc. are not discussed by this study. These services are traditionally associated with the executive power of the state in Europe, although the American practice has successfully privatized some of them. Public services can be classified as infrastructure and welfare services. The provision of welfare services is based on solidarity. In other words, the state balances the unequal effects of the market and ensures basic goods and services for those in need. Infrastructure services, such as telecommunications, railways, etc. often have great capital intensity and low profitability, and several other services, e.g. the maintenance of public places, roads, etc. are not lucrative either. Given the lack of private capital, the state began to provide them in response to the pressures of necessity. Public services are provided by local governments, provided that seems more rational than provision at the central level. Public services, such as the postal service, telecommunications, gas, electricity, railways, airways, and highways, are traditionally provided by central government authorities. These central public services are regarded as state monopolies closely connected with the service functions of the state.

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