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In a democracy, the public defines the value of public services and part of the legitimacy of government rests on how much it adds to the public value. Governments provide public services not only because there is market failure but also to satisfy public preference.
Public value failure occurs when neither the market nor the public sector provides the goods and services required to achieve core public values. Irrespective of who delivers the service, the culture and values of the provider must reflect the public ethos in order to achieve added public value and deliver high quality services.
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