Public capital refers to the physical and intangible assets owned and managed by the government for the benefit of society. These assets can include infrastructure such as roads, bridges, and public buildings, as well as natural resources such as parks and forests. Public capital also includes intangible assets such as the legal and regulatory framework, as well as the knowledge and expertise of public sector employees.
Public capital plays a vital role in supporting economic growth and development, as it provides the infrastructure and resources necessary for businesses and individuals to thrive. It can also contribute to social and environmental outcomes, such as improving access to education and healthcare, and protecting natural resources.
However, the level and quality of public capital can vary significantly across countries and regions. Governments must carefully balance the need to invest in public capital with the need to maintain fiscal sustainability. This can be challenging, as the benefits of public capital may not always be immediate or easily quantifiable, and there may be competing priorities for public resources.
In summary, public capital is an important component of a country’s overall capital stock, and plays a vital role in supporting economic growth and development, as well as social and environmental outcomes. Governments must carefully consider the investments needed to maintain and enhance public capital, in order to support the long-term well-being of their citizens and societies. The following are common types of public capital with examples of each.
Infrastructure for moving people and goods.
- Train Stations
It is very common for developed countries to provide universal public healthcare for free such that governments commonly own most of their healthcare system.
- Clinical Lab
- Long-Term Care Facility
Institutions that provide education, often for free or low cost.
- K-12 Schools
- Training Programs
The criminal justice system.
- Rehabilitation Programs
Hard and soft infrastructure that improves public safety.
- Consumer Safety
- Transportation Safety
Public space is mostly natural capital such as land but includes services and land improvements that are public capital.
- City Parks
- National Parks
Utilities are basic services that are critical to quality of life. These are often owned by a government or heavily regulated to prevent monopolies from undermining the competitiveness and quality of life of a nation.
- Internet Access
Arts & Culture
Arts and culture programs and facilities.
- Artifacts of Heritage
- Historical Buildings
- Performance Venues
Sports & Recreation
Places for international, national or community sports and recreation.
- Ice Rinks
- Sports Infrastructure
Research and development facilities and programs.
- Science Infrastructure
- Science Programs
- Space Programs
Any capital used by a government to provide its services is public capital. For example:
- Energy Infrastructure
- Government Buildings
- IT Infrastructure
- Waste Management Facilities