Public sector plays a vital role in the development of any economy. Public sector being the monopoly in the hands of government is considered to be very important organization. Below are consequences on the economy without its existence:

• Slow Economic Development: Economic development mainly depends upon industrial development. Huge capital is required for establishment of such heavy & basic industries. This capital required for these industries is easily & readily made available by public sector but it is practically not possible for a private sector to run these industries.
• Lack of Regional Development: Private sector usually neglect backward area. But public sector organizations set up their units in economically backward areas. By this public sector removes regional imbalance & brings regional development.
• High Unemployment: Various public sector organisations operating in Ghana needs lot of manpower & this provide employment to unlimited individuals according to their education, experience & abilities. Without this there will be high unemployment.
• Bad Service Motive: Public sector organizations are working with the only motive of providing public utility services to society at large irrespective of profit.
• Lack of Infrastructure: Rapid industrial growth in a country needs sound infrastructure. Infrastructural industries require huge capital for construction of Roads, Railways, Electricity & many such industries. Private sector is unable to have such huge capital & that also without any high return but public sector can easily afford to provide all infrastructural facilities.
• No Protection to Sick Industries: Public sector, to prevent sick unit closing down, takes over their responsibility & prevent many people from getting unemployed not only this but it prevents unnecessary locking of capital, land, building, machinery, etc.

(Any 4 points for 4 marks)