Private Sector and Productivity

Abstract

Dr. M. Azizur Rahman explores the pivotal role of the private sector in driving national development and increasing Gross Domestic Product (GDP). The author asserts that private organizations are inherently more productive than government institutions due to strict internal discipline, accountability, and the absence of political interference. Grounded in Adam Smith’s theory of the "invisible hand," the article explains that while individuals act out of self-interest, their risk-taking and hard work ultimately benefit society through industrialization and resource management. The text highlights that private sector success is characterized by professional management, skilled labor, and performance-based incentives such as "Value Added" credits for workers which are often lacking in the public sector. Rahman concludes that the development of a happy and enriched society depends on the initiative of private businesses to increase national income and eliminate poverty.