When Government Falls Short: How the Private Sector Steps In

Private Sector Efficiency

Why Services Matter

Healthcare, education, transportation, communication—our daily lives depend on reliable services. Yet when government systems falter, citizens face gaps that can disrupt entire communities. In these moments, the private sector often steps in, offering solutions that can be faster, more efficient, and more innovative.

As a former mayor of a border city in Arizona, later Director of the Arizona Department of Commerce, and Chief of Staff at U.S. Customs and Border Protection, I’ve seen firsthand how both sectors shape lives.

Today, as CEO of Intermestic Partners—an international business advisory firm founded in 2011 that specializes in cross-border trade and development—I continue to study where government and business intersect.

Government vs. Private: The Dynamics

• Public sector: delivers universal access, but often burdened by bureaucracy.

• Private sector: profit-driven, competitive, and innovative, but can leave vulnerable populations behind.

The challenge is balance: ensuring efficiency doesn’t come at the expense of equity.

Case Studies: Filling the Void

• Service suspension: A government service shuts down; a private company steps in, streamlining access and delivery.

• Utilities takeover: Where public utilities faltered, private firms improved reliability and customer satisfaction.

• Tech innovation: Technology companies often refine or replace outdated government systems, improving user experience.

Did you know that in 2018, private firms provided internet access to over 80% of rural U.S. communities—far outpacing government efforts? A reminder that innovation often arises where public systems lag.

The Drivers of Success

Private-sector efficiency stems from:

• Profit incentives

• Competition and innovation

• Streamlined decision-making

These forces explain why businesses often outpace government when agility is needed.

The Criticisms

However, private solutions raise concerns:

• Affordability: Market-driven pricing can exclude lower-income groups.

• Inequality: Services may favor wealthier regions.

• Accountability: Companies face less direct public scrutiny than government.

Striking the Balance

The answer isn’t choosing one over the other—it’s cooperation. Governments must set policies that:

• Ensure fair access to services

• Encourage healthy competition

• Monitor quality and transparency

This balance ensures efficiency doesn’t undermine equity.

Conclusion & Call to Action

The private sector’s efficiency can be a powerful complement to public services, but unchecked profit motives risk deepening inequality. We must build partnerships that combine government reach with business innovation.

At Intermestic Partners, we’ve spent over a decade advising top national and international companies on navigating these dynamics across borders. If you’re seeking ways to align business strategy with public good—let’s collaborate. Together, we can design solutions that are both effective and equitable.