Different sectors of the economy play a vital role in the enlargement of any economy. Bhutanese economy is facilitated with two such sectors namely private and private sectors. The state sectors are public-owned sectors dealing with production and allocation. The private sectors are profit-oriented sectors owned by an individual and private enterprises.

Public sector is relatively in its underdeveloped stage till date with public sector being the main driver of development. For instance the electricity sector generates income that has transformed the economy over the century. On the other hand, the private sectors were initiated after 1960 with then existed in the field of agriculture and training activities. The tourism sector, the hard currency generator, was privatized only in 1991. Developments of an economy through various sectors are facilitated mainly by the nine indicators of progress influencing over the years. The contribution of the private and public sector towards the economy is facilitated by the Gross Domestic Capital Formation in the current year 2009) with more contribution from the private sectors over the years (2005-2009). In the industrial sector, the manufacturing companies are classified under private and public enterprises and their share of GDP contribution have been discussed in their sales ranging from 1992 to 1996. There are more private enterprises with more sales contributing towards GDP of the economy.

The employment data are composed of industrial sectors with more labor participation from the private firms. Apart from this, the lists of top ten private businesses are shown with their contribution to GDP through their revenue. Jigme mining Company has the highest contribution to GDP followed by the SD Eastern Bhutan Coal Ltd. Although efficient, private and public sectors have a long way to go especially with their shortcomings. For such problems recommendations have been suggested for further enhancing the productivity.

Introduction

The investors’ word (2011) defines public sector as the part of the economy that is concerned with providing basic government services and its composition varies by countries, generally including services such as police, military, public roads, public transit, primary education and healthcare for the poor. For instance Royston (1984) has conferred some of the important public sectors in England such as health, social security, transport, excise, agriculture, employment and environment sector. Apart from this Bhutan has construction, culture, ICT (information and communication technology) and tourism as various other public sectors as affirmed by the Gross National Happiness Commission (GNHC, 2010).

The Answers Corporation (2010) also refers public sector as the state sector that deals with production, delivery and allocation of goods and services by and for the government or its citizen. By the end of the 10th Five Year Plan (FYP) Bhutan aims to generate substantial portion of employment target around 75,000 jobs in crucial sectors such as tourism, cultural industry, ICT and agriculture. (GNHC, 2010)

Private sector on the other hand is the part of the economy that is run by individuals and companies for the profit (Answers Corporation, 2011). Similarly the dictionary of Business (2009) delineates it as the “part of the national economy made up of, and resources owned by private enterprises” which includes personal (households) as well as the corporate sector (firms). However, this definition is not acquired to its subjective meaning alone. For instance, the administrator of the UNDP, Mark Malloch Brown has anticipated the private sector’s focus on confronting problems of poverty reduction and human development, jobs and opportunity and growth which ‘belong there not in the gift of government’. (Organization for Economic Co-operation and Development (OECD), 2002, P.4)