Why can’t the private sector be an economic alternative in undeveloped societies?

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Why can’t the private sector be an economic alternative in undeveloped societies?
One of the most critical obstacles against the development of the private sector in the Third World countries is the lack of decentralization. Economic and political decentralization are both essential to the enhancement of the private sector.
Decentralization of the economy allows the private sector to be actual competitor with the sector and even with the government. The outcome of such competition includes jobs creation and democracy.