Country's Economic Policy Research Articles

Theoretical basis of formation of an integrated management system in agricultural enterprises

Introduction. Today, one of the main goals of any country's economic policy is to improve the technical level and quality of products comprehensively. Globalization and overall competition have brought to life a new consumer-oriented business management model. Determinants are the principles and methods of quality management systems that allow coun-tries to compete with each other in many industries. The purpose of the research is to analyze practical recommendations for improving practical experience and meth-odological recommendations for building an integrated management system, by creating a formalized model of such a sys-tem for agro-industrial enterprises. Results. The authors of the article proved that the most effective way to improve enterprise management today is to implement integrated management systems created in accordance with the requirements of international ISO standards. It is researched that the characteristic feature of the majority of organizations all over the world is their desire to implement at the enterprise at once or in turn several management systems, which in the future function as local systems and are responsible for meeting the needs and requests of different stakeholders. The integrated management system is considered based on the application of system and process approaches to enterprise management, which allow to unite different processes and activi-ties in a single whole. Conclusions. It is proved that the purpose of creating an integrated management system is joint optimal risk man-agement, which allows to reduce the material and organizational resources needed for the enterprise. Integrated management systems are built on the basis of the application of system and process approaches to enterprise management, which allow to unite different processes and activities. The presented criteria and the degree of their functioning clearly show the effective-ness and efficiency of ISM in agro-industrial enterprises. Key words: quality, quality management, management system, integrated management system, management system, enterprise of agrarian sector.

What's next for Cuba? And this issue's contents

In April the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) reported that the Cuban economy was expected to shrink by 3.7 percent in 2020 (which, if reflected on as a comment on the robustness of the Cuban economy to such an external shock, should be considered against the expected 5.3 percent average contraction of the Latin America and the Caribbean region as a whole that the Island is part of). [...]contrary to those who blame every problem Cuba ever faces on 'errors by the government', the data do not support that the serious contraction that Cuba is facing from COVID-19 is the result of, or even has been primarily exacerbated by, the country's economic policies. [...]beyond that, and once again independent of one's views about the desirability of tourism as a human economic activity (which this author has great concerns with, though more with its nature than with its amount), the data do not support that the development of the tourism industry in Cuba over the last quarter century has left its economy 'overdependent' on tourism by any meaningful comparative economic measure. Worldwide, a rounded approximate number for tourism's total contribution to world economic activity (or more correctly, the part of that which standard national accounting keeps track of as GDP) and of world employment is 10 percent of each.

Strukturni problemi finansiranja privrednog rasta Republike Srbije

Changing the model of economic growth, based on the dynamic increase in investments in the export oriented manufacturing sector, imposed a need to re-examine the structure of the sources of financing and the efficiency of the financial system of the Republic of Serbia. In the focus of the country's economic policy, domestic sources of financing for growth and solving structural problems of their functioning must be found. Domestic savings, although small and insufficient, are not used in accordance with development priorities. Foreign direct investments, both by volume and by their structure, have not, in accordance with expectations, provided high and stable growth and change in the structure of commodity exports, towards a higher share of products based on innovation and knowledge.

Održivi rast i regionalna konkurentnost privrede srbije

Backwardness in economic development in comparison with EU and countries from region, expressed especially after big crisis from 2008, demands a change of country's economic policy in order to create assumptions for a long-term sustainable development and competitiveness' increase in regional and world contexts. Having in mind results realized so far, there is a real danger that current economic policy will stabilize country on a low level of GDP, high unemployment rate, with low wages and bad working conditions in a large number of enterprises, in domestic or foreign ownership. Such situation is a result of non-existence of adequate strategy of economic development in transitional period. The goal of paper is to point that new economic policy should be based on support to sectors which most of its added value create through internationalization of business and which have faster growth of revenues on foreign than on domestic markets, such as IT sector, agro-business, medium-tech developed industries.

PRAGMATIC ROLE OF FINANCIAL MECHANISMS IN THE PARADIGM OF INNOVATIVE DEVELOPMENT: DOMESTIC AND WORLD TRENDS

The pragmatic role of financial mechanisms in the paradigm of innovation development on the basis of fundamental principles of national science and practice is explored. It is proved, that the key parameters of modern innovation development show steady tendencies of decreasing entropy of financial mechanisms of the state. It was clarified that the transfer of emphasis on the use of advanced technologies, the transition to the release of high-tech products, the adoption of progressive organizational and managerial decisions in innovation activities should be based on the principles of innovation imperative and autocratic mechanisms in the country's economic policy. It was stated that the intensification of innovation processes in the state should be based on the principles of interaction between subjects of scientific and technical and entrepreneurial activity, in particular, to minimize the consequences of changes in the structure of economic activities. It has been established that the paradigm of innovation development requires the formation of an effective financial policy of the state, the main tasks of which are activation of innovation activity of economic entities and the creation of a coherent system of their financial support, taking into account an effective financial mechanism. This will be facilitated by systematization of state financing and stimulation of innovative development of the national economy.

Ecuador: Institutional Strengthening and Effective Negotiations in the International Arena

The country's economic policies in commercial matters, according to experts and a part of society, are visualized within the international community with a certain level of distrust and insecurity, due to their normative and organizational changes; this criterion contrasts with the confidence in the Government's firm intention to boost the internal economy through an endogenous model, which also positions a nation with sovereign decisions. In this context arises the importance of institutions that, according to North (1990), constitute the key factor in the country's development. The fissures created in the country's image by this polarity of perception can be effectively overcome by highlighting the institutional value and credibility, which are harmonized with communicative actions as a reference point in effective negotiations within the international framework.

A global bioenergy supply network redesign through integrating transfer pricing under uncertain condition

Biomass, as a renewable material and a clean alternative fuel in generating electricity and heat, is of particular importance in the transportation industry for the production of biofuel instead of fossil fuels. So far, many models have been proposed for the Bioenergy Supply network design, all of which are local and focus on designing new configurations that conform to a specific country's economic policies. But since globalization of the economy and industry is unavoidable today, effort has been made in this paper to propose a global Bioenergy Supply network management model. Contrary to the present literature on the Bioenergy Supply network, the proposed model addresses the redesign of an existing biomass supply network through logistic decisions, financial problems, and related merits. The model objectives can help managers to make decisions using the best transfer prices to maximize the global after tax profit of the biomass company even under uncertain conditions. To validate the model, use has been made of the data of a case study in Iran and Armenia. At last, it is concluded when transfer price is considered at the model, the global after tax profit can increase more than 8% compared with the case of without transfer price.

Integration of Ukraine to the European financial space: prerequisites, problems, prospects

Relevance of the research topic. The strategy of social and economic development of Ukraine declares the European choice of the state. Accordingly, it is relevant to study the processes of Ukraine's integration into the world financial space and its regional subsystems in order to determine the strategic directions of the country's economic policy, taking into account the latest trends in the development of the world market. Formulation of the problem. With the acceleration of financial globalization, its impact on the country's economy and its financial component is substantially changing and intensifying, the processes of integration into the world financial space are becoming irreversible, and their impact on national economies is controversial, which requires further scientific research of the theoretical and applied aspects of integrating the financial system of Ukraine into European financial space. Analysis of recent research and publications. The problem of the influence of globalization on the financial systems of countries, the consequences of integration of the Ukrainian economy and its financial component into the global economic space and its regional subsystems is now quite widespread in scientific research. These are the works of famous scientists: Raghuram G. Rajan, D. Lukianenko, S. Lutsyshyn, A. Mozgovyi, L. Petkova, A. Rogach, K. Rogoff, J. Stolyarchuk, N. Stukalo, and others. Selection of unexplored parts of the general problem. At the same time, these issues are being updated in connection with the acceleration of financial globalization and the European choice of Ukraine, which requires the solution of a number of specific tasks related to the integration of Ukraine into the global financial space. Setting the task, the purpose of the study. The objective of the study is to analyze the latest trends in the development of the world financial system to justify the conditions and the main directions of the country's integration into the European financial space. The purpose of the study is to determine the main directions of Ukraine's financial eurointegration policy. Method or methodology for conducting research. The article uses a set of methods of scientific research: the system approach, statistical analysis, structuring, analysis and synthesis. Presentation of the main material (results of work). The influence of financial globalization on the development of the financial system of Ukraine is determined and the conditions and main directions of the country's integration into the European financial space are justified. The advantages of sectoral integration of Ukraine in the financial sphere are proved. The field of application of results. The results of this study can be applied in the process of forming and implementing the financial Eurointegration policy of Ukraine. Conclusions according to the article. With the acceleration of financial globalization, its impact on the economies of the countries and their financial component is substantially changing and intensifying. Accordingly, it is relevant for Ukraine to monitor the latest trends in the development of the global economy, the world financial system and its regional subsystems to determine the strategic priorities for reforming the financial system of Ukraine and timely and effective adjustment of the state's financial eurointegration policy.

Privatization in the Land of Believers: The political economy of privatization in Pakistan

AbstractDespite theoretical justifications and empirical evidence that state-owned enterprises have played an important role in late development, as well as over three decades of evidence that privatization programmes since the 1980s have had mixed results at best, international financial institutions continue prescribing privatization as a panacea for developing countries. Pakistan is an interesting case to understand why privatization is still considered desirable, because it is one of a set of developing countries that have whole-heartedly implemented Washington Consensus policies. In this context, we analyse privatization in two key economic sectors in Pakistan: energy and banking. Using qualitative and quantitative data, we describe the motivations behind these privatizations, the process by which they were carried out, and analyse the post-privatization performance of these organizations and sectors. We find that in both cases (a) the privatizations failed not only with respect to their stated aims, leading to a decline in national productive capabilities, but also had adverse distributional consequences, shifting the rewards to the buyers while the risks and costs remained with the public sector, and (b) the suboptimal outcomes of the privatizations went largely unchallenged aided by a prevalent neoliberal view amongst the country's economic policy makers and intelligentsia. Our analysis sheds new light on the process by which privatization in the absence of a state with the capacity to discipline business interests has enabled these interests to obtain state-sponsored rents without bringing any of the associated benefits for economic development.

PROBLEMS OF ENVIRONMENTAL SAFETY OF RUSSIA IN THE LIGHT OF THE “GREEN” GROWTH CONCEPT

A number of key aspects of environmental safety of Russia and some other countries have been considered in the paper. It is shown that the reasons of many environmental issues to a significant degree had an anthropogenic origin. Taking into account environmental situation in the Russian Federation ecological safety becomes the most significant component of the national security in connection with the necessity of ensuring human health and well-being, as well as accounting of environmental aspects in the country's economic policy when economic development and environmental issues can no longer be considered separately. A special importance for providing ecological safety of the country gains necessity to consider the ongoing climate change along with full value accounting of natural capital in the system of Russia's national accounts. The article also touches upon the main aspects of "green economy" and "green growth" concepts that represent a fundamental idea of modern sustainable development, as well as a set of measures proposed within the "green" growth strategy that might be adjusted to the national context of the Russian Federation. Wide application of environmentally safe and resource-efficient technologies, low-waste and wasteless production, re-use and recycling of wastes and materials as a source of raw materials in the economy are terms of ecological security of Russia. The authors have also analyzed the experience of ensuring environmental safety of some member-countries of Organization for Economic Cooperation and Development in the light of "green economy" concept and considered possibilities for applying that experience for ensuring environmental safety of Russia on the basis of comprehensive integration of environmental observations in to the economic policy of the country. The article also contains recommendations on the alignment of legislative base of the country with "green" economy requirements.

РОЛЬ ИНВЕСТИЦИОННОЙ ДЕЯТЕЛЬНОСТИ ЦЕНТРАЛЬНЫХ БАНКОВ В НАЦИОНАЛЬНОЙ ЭКОНОМИКЕ

Subject. The article is devoted to the implementation of investment activities of central banks. Goal and objectives. The article reveals the content and gives a comparative analysis of the investment activity of central banks in the different countries of the world. It defines the role of the central bank and its status in the country's financial and economic policy. Methodology. The methodological basis of the research is the general scientific method of cognition, as well as comparative, systemic and logical-structural analysis. Results. The analysis allowed the authors to structure the investment activity of central banks and to explain its individual components. The article gives a detailed analysis of motives for conducting currency intervention, instruments of investing in the foreign exchange market, as well as the role of the central bank as a lender of last resort and the crisis state of the economy as an impetus to the development of refinancing of credit institutions. It reviews various methods of refinancing and the effectiveness of their application in various economic conditions. Conclusions and significance. The research has allowed the authors to identify new tendencies, features and some contradictions of investment activity of central banks in the national economy.

The strategy in Russian macroeconomics in the period of adverse economic conditions

The article deals with the existing features of the development of macroeconomics in the Russian Federation in the period of adverse economic conditions. Presents the most pressing issues of concern facing currently before the country's economic policy, as well as suggest possible solutions of these issues in the future.

The sustainability of budget deficits

The aim of this research is to analyze the budget deficit sustainability and by doing so determine whether the government can use it to reduce the negative consequences without compromising the overall balance. In the recent decades, some developed countries have been facing extremely high budget deficits, which attracts great attention of economists. The risk of default is hanging like the Sword of Damocles above the heads of some EU members and everyone agrees that the increase in public debt is unsustainable. State budgets begin to resemble a Ponzi scheme - let usjust mention the US federal deficit. This is also a central issue for the EMU, because debt cannot continue to grow faster than the national income. Over time, an increasing part of the budget has been dedicated to debt servicing, until finally its amount does not force the authorities to finance debt either by printing money or by defaulting. This paper points out that solutions are possible if the executive state authorities abandon the unreasonable spending and the neo-liberal concept of managing the economy. But without compelling changes of the country's economic policy, the risk will reach the point where the adverse effects become inevitable.

Faktori promena na tržištu radne snage Srbije

The labor market shows marked fluctuations between supply and demand, which basically reflects the economic environment of the Serbian economy. These changes in the labor market are the result of the country's economic policy, business conditions, legal regulations, social shocks, gray economy flows and other economic, social, legal and political factors. Employment growth in the workforce creates conditions for a higher level of employment of all economic resources, which will in the long run enable the growth of gross domestic product and a better position of all economic entities in the country. The state must develop instruments to develop a private initiative and create new jobs. It is necessary to create an environment that will stimulate investments and more employment of the economy, which will result in higher employment.

The Rise and Fall of Virata's Network: Technocracy and the Politics of Economic Decision Making in the Philippines

An important network that has emerged the Philippines is that of technocracy. It was seen the 1960s during the pre-martial law period (1960-72), but its significance rose rapidly during the martial law period (1972-86), when technocracy was thrust into the forefront of the country's economic policy making. In general, the attraction of technocracy to government leaders generally emanates from the system the latter represent, in which technically trained experts rule by virtue of their specialized knowledge and position dominant political and economic institutions (Glassman et al. 1993). This paper argues that the politico-economic clout of the technocracy is based also on the strength of its network(s) connecting with the important centers of power society. I use Albert-Laszlo Barabasi's (2002) definition of network:not just a simple interconnection between two objects, but one which comprises of a complex series of links, nodes, hubs, and clusters, all varying configurations and density, and differing strength terms of their linkages with each other or within themselves.My article will look into how Barabasi's concept has been appliedto the study of . . . and how these concepts help us understand the dynamics of coalition, compromise or contention among and between actors, parties, movements, and institutions. (Abinales and Onimaru 2010, 1)I will apply the concept of networks looking at factors that have strengthened as well as hindered a particular technocracy network the Philippines, i.e., the network of Cesar E. A. Virata, who during the martial law period was viewed as the chief technocrat. He was President Ferdinand Marcos's minister of finance, and later on prime minister. The paper aims to trace the evolution of the political and economic clout of Virata's technocracy network as well as the factors that caused the collapse of the network. In particular, it will highlight how Virata's technocracy network was thrust into power by a threedimensional politico-economic relationship among the following networks: Virata's relationship with the leadership, i.e., Ferdinand Marcos; his relationship with the International Monetary Fund and World Bank; and Marcos's relationship with the United States. These relationships intertwined with each other and highlighted the success as well as the collapse of the Virata technocracy network.This paper hopes to contribute to the writings on Philippine technocracy as well as the networks approach Philippine politics. As I write this article, I have not come across any writings on the Philippine technocracy using the political networks approach. This may be understandable, as writings on Philippine technocracy have been sparse and have generally used the political economy framework1) or the social/cultural approach.2) This article, therefore, seeks to contribute to the literature on the networks approach the following manner: (1) it applies this approach to the study of technocracy; (2) it uses political network analysis as opposed to the general trend of major analytical studies the fields of sociology, anthropology, and communications; (3) it seeks to introduce a Philippine perspective particular, and a Southeast Asian perspective general, to the study of network analysis vis-a-vis the more dominant Western-oriented approach; and (4) the article's study of network analysis is applied also to stable situations, i.e., normal politics under the authoritarian Marcos regime from a technocrat network perspective.I Defining the Technocracy and Their Network(s)Technocrats are situated a crucial network society, which is the class. The is also referred to as the intermediate class the development process and politics. This network is crucial the Third World because middle personnel occupy the niches of the state apparatus (Johnson 1985, 15). …

Sustainable development through innovation (the example of JSC «Concern» Constellation»)

In the article the «economic growth» theoretical approaches to the terms and «sustainable development». It is indicated that «sustainable development» is related to the introduction of new technologies and innovations, as well as the mechanisms of perfection economic activity. The concept of «sustainable development» includes the principles of sustainability and balanced-ness, while economic growth is associated with the dominant country economic policy objectives), including innovative factors), with the well-being of its population level: the development of the social structure, from the labor market level and other factors. Prospects of development of the country based on the justification of the socio-economic model of its translational movement in the world civilization. Excessive political risks and economic sanctions have shown that Russia should not rely on foreign imports of high-tech, and the need to develop import substitution. Change the vector of development of the Russian economy made their adjustments to the development of the Voronezh region economy slowed down the speed of displacements, of capital, the regional financial centers develop poorly, due to lack of investment has slowed the growth of innovational and information development. There is a growing dependence of the region on the processes taking place at the international and national levels. In the example of the Voronezh area are considered factors of sustainable development such as the coordination of organizational efforts and financial resources in order to achieve a new quality of the region's population lives, and necessity of formation of a new development paradigm of management in the region, based on the modernization of diversified bath economy and the introduction of mechanisms to ensure the implementation of sustainable development. In view of the innovative-investment activity of JSC «Concern» Constellation «steady growth, coupled with an increase in the Russian Federation and the regional economy.

THE INTEGRITY BALANCED THEORETICAL AND ACTUAL CAPABILITIES OF THE MODEL UNIVERSAL MACROECONOMIC SYSTEM

Numerical indicators of the level and pace of economic and social development are essential to evaluate the effectiveness of the country's economic policy, its subsequent changes, management of public development generally. The most common model among economists P.Samuelsona conclusions dit alleged direct link between large amounts of savings and the corresponding consumption level, the economic law of increasing additional cost, decreasing the efficiency and performance / yields, savings in oil headquarters, etc. The development of modern developing and developed economies often contradict this model of economic choice. The author's model, which is close to the interpretation of econophysical direction leniyu in modern economic theory (the Carnot cycle in the thermodynamic) resulting economic system specific amount of public expenditure and investments always result in the ideal case (zero-loss maximum mally possible social efficiency of public spending and investments) to the maximum possible rate of economic growth. The result of the model developed by the author of a balanced open economy is to overcome the barrier of the alleged lack of economic system of quantitative constants, so it is very different from the physical systems (with full awareness of the limitations of its author: irreducibility public the progress of human development to increase income or augmenting material wealth, economic growth). Holistic macroeconomic model proposed above, following the introduction of her in the preparation, negotiation, approval and implementation of the budget analysis relevant government authorities allow, in our opinion sighted, and not blindly justify the scientific and strictly control the effectiveness of direction tions of macroeconomic development, their deviation from ideal.

Timor Lorosae. Timor-Leste: The history and development of Asia's newest nation By Abraham Joseph and Takako Hamaguchi; Foreword by José Ramos-Horta Lanham, MD: Lexington Books. 2014. Pp. xxii + 189. Map, Photographs, Index.

Timor-Leste: The history and development of Asia's newest nation By ABRAHAM JOSEPH and TAKAKO HAMAGUCHIJ Foreword by JOSfi RAMOS-HORTA Lanham, MD: Lexington Books. 2014. Pp. xxii-i-189. Map, Photographs, Index. This work focuses on developments in the economy and foreign policy of Timor-Leste since its independence. The authors provide an overview of the country's national economic policies and initiatives and their outcomes while valorising its partnerships with the United Nations and key donor nations. The title of the book might be misleading, however, since the analysis lacks context, particularly on the dynamic nature of internal relations and their impact on the economic development and foreign policies of Timor-Leste. Furthermore, the country's relations with 'donor nations' and the UN are not critically assessed, but instead rather lauded. Yet, although these inherently asymmetric power relations between Timor Leste and its 'well-meaning big brothers' have received more critical analysis in recent writings (e.g. Caroline Hughes, Dependent communities: Aid and politics in Cambodia and East Timor, 2009; and my Timor Leste: Politics, history, and culture, 2010) one of the author's arguments seems to imply that the successes of Southeast Asia's newest nation are the result of foreign engineering and 'tutorship'; and thus to minimise the achievements of the people of Timor-Leste themselves. The book also does not make any mention of the numerous civil society and local NGO initiatives that are not only impacting but in some cases driving rural development. Even the challenges faced by Timor-Leste are presented in a muted manner; again lacking a nuanced analysis and thus predicting a rosy picture for the immediate future. To be fair, the authors' arguments are in line with the main goal of the book, which is to showcase Timor-Leste as an exemplary success story to other small nations. The people of Timor-Leste should be proud of all their achievements in developing and transforming their nation through their commitment to a peaceful postconflict reconstruction. These successes were not entirely achieved through the direction of their foreign advisers, donor nations, and the United Nations, but through their own sacrifices, hard work and commitment. Here again, the book does not seem to give enough credit to the Timorese. The book is divided into an introduction and nine main chapters. The chapters address key issues through the dominant discourses of the United Nations. Such UN discourses are thus transplanted into Timor-Leste and national policies seem to coalesce around these. The introductory chapter provides a summary of the economic developments and foreign policies of Timor-Leste since its independence up to 2012. The subsequent chapters provide an elaboration of this overview. Chapter 1 examines the economic history of the country, providing narrative explanations of the statistical data compiled by the UN showing a steady post-independence growth and developments in a number of economic sectors. The second chapter addresses Timor-Leste's framework for development and the ways it is in line with the UN's Millennial Development Goals (MDG). Through an examination of national policies for sustained economic growth, the authors highlight the establishment of the Petroleum Fund, and policies concerning land reform and capital development, as well as initiatives on business reforms and export promotions. Timor-Leste's policies on food security, anti-corruption, and the protection of vulnerable populations have made great strides towards the MDG. After a brief overview of the history of oil and gas exploration and related treaties, the following chapter is devoted to the consideration of the Natural Resources Endowment and the ways in which Timor-Leste has utilised the receipts from its oil and gas resources towards economic development. …

Study of the Development of Institutionalism in Electric-Power Industry

Object of research - the institutional environment of power industry. The article considers the institutional aspects of the development of the electric power industry. The undertaken large-scale transformations in the Russian electric power industry are not perfect yet. There should be conducted a tedious research and practical work on the creation of an effective institutional structure. The creation of electric power industry based on a new institutional structure will allow smoothing unstable condition of the national economy. Research methods: system and institutional approach, analysis and comparison of these various researches, use of empirical materials. The results show that, now in world economy it is necessary to pay attention to creation of the effective institutional environment of power. Institutional environment energy sphere is an integrated system of institutional support activities, development of human and social capital, industrial and economic growth. Reliability, quality, convenience, efficiency and availability of energy products and services, fast and cheap connection to power grids, the establishment of the institutional framework for consumers should be an important priority in the country's economic policy. DOI: 10.5901/mjss.2015.v6n4s2p562

Econometric Estimation of the Relationship between Unemployment Rate and Economic Growth of FYR of Macedonia

This study aims to estimate empirically the relationship between economic growth and unemployment rate in FYR of Macedonia applying the Okun's Law. For analyzing the Okun's coefficient are used four types of models such that, the difference model, the dynamic model, ECM, and VAR estimation approach, in order to consider both, the short term and the long term possible relationship. The analysis consists on quarterly data covering the period 2000-2012. The empirical results from all models do not indicate robust evidence and do not confirm an inverse linkage between unemployment rate and economic growth, as the Okun's Law suggests. Based on the VAR methodology and Engel-Granger cointegration test, it doesn’t exist a causal relationship between these two variables and a change in the growth rate of real GDP doesn’t cause a change in the rate of unemployment and vice-versa. The main reasons that go far to explain the regression outputs are: first, the large informal employment that accounts at about one fourth of total employment and second the structural unemployment. The study also highlights that the country's economic policies have not been suitable for fostering development and reducing unemployment, as the primary source of employment is the public sector rather than the private sector.