Introduction

Private sector can be defined as “the part of an economy that is owned by individuals and operated for their personal benefit. It is made up of private citizens” Wilson& clark (1997, p.76) though the private sector is not managed by the government and their motive is to make profit and to invest it and help us to make more money if we have talent and education there by equalizing the accountability. Under private sector producer receive a compensation for the full opportunity cost of production, provides benefit only to the individual who consume the goods and to no one else.

Whereas the public sector can be defined as ” the public sector is the part of an economy that is owned by and operated of the whole benefit of economy” Wilson & clark (1997,p.77) in some countries of the developed world and not the developed world of organization such as manufacturing plant is part of the public sector. The public sector has more resources and its disposal and carries out the projects with the public money. For example that is collected from tax. Their main motive is to seek the well being of the country and to help the citizens in the economic development.

As the Bhutanese economy is amongst the worlds smallest and least developed, since it is based on agriculture, fisheries and farming and forestry which provides for the livelihood for more than 60percent of the general populace. Its economy is closely aligned with India’s through strong exports and imports, monetary links and dependence on India’s financial aid as a result the industrial sector is technologically backward with most production of cottage industry type. However hydropower exports to India have boosted Bhutan’s Gross Domestic Product (GDP). Again New hydro power project will be the driving force behinds Bhutan’s ability to create employment and maintain growth in the coming years.

This assignment contains the analysis of the history of private and public sector in Bhutan, its indicator for the economic development, its contribution towards GDP, employment contribution from both the sectors, and difficulties in the development of private and public sector in Bhutan.