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In many underdeveloped countries, most economic activities are controlled by the public sector. In fact, so many activities are being performed by the public sector that the performance of the private sector is inherently dependent on the performance of the public sector. As a result, the operations cost of the private sector is determined by the public sector. In addition, the large superstructure of the public sector takes away the resources which might have gone to the private sector. This not only increases the cost of operations for businesses but also limits the economic growth.

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