Understanding the Private-Public Divide: Markets, Governments, and Time Horizons

Avner Offer provides a new account of the effective temporal limits on private, public, and social activity, explaining the private-public divide, the division of labor, and the harm that follows if boundaries are violated. He shows how finance forces markets to focus on short-term objectives and why business requires special privileges in return for long-term commitment, leading to inequality, insecurity, and corruption. Governments are necessary to manage uncertainty in the long-term interests of society, as shown by the challenge of climate change.

Format: Paperback / softback
Length: 200 pages
Publication date: 07 April 2022
Publisher: Cambridge University Press

Markets are widely accepted as the standard in economics and political and media discourse. However, despite their perceived superiority, the public sector continues to occupy a significant portion of the economy. In his book, "Understanding the Private–Public Divide," Avner Offer presents a fresh perspective on the temporal boundaries of private, public, and social activity. He delves into the reasons behind the division of labor between business and the public sector, its evolution over time, the appropriate boundaries for these sectors, and the consequences of violating them. Offer explains how finance shapes markets to prioritize short-term objectives, leading to a focus on immediate profits rather than long-term sustainability. He also highlights the need for businesses to receive special privileges in exchange for their long-term commitment. Furthermore, he demonstrates how a private sector policy bias contributes to inequality, insecurity, and corruption.

It is important to note that integrity used to be the norm and can be restored. However, only governments possess the ability to manage uncertainty in the long-term interests of society, as exemplified by the ongoing challenge of climate change. By understanding the Private–Public Divide and its implications, we can strive for a more balanced and sustainable economic and social landscape.

Weight: 312g
ISBN-13: 9781108791663