PRIVATISATION -- A NECESSITY – ECONOMIC OR POLITICAL?

Economic development is or at least should be the primary objective of any government in power. Now, in the words of  President Abraham Lincoln ‘Government of the people, by the people for the people. As such the question is whether it is possible to make economic development of any country without the proportionate economic development of its citizens. The answer could be really surprising and shocking!!!

We perhaps know the economic failure of the greatest socialist nations of the world viz. Soviet Union, Romania, East Germany. We all know how Communist China has risen to the economic curve by massive industrialisation and privatisation of their economy.

Ø Government of a nation  is expected to  supervise and not to do business of their own, as profit and loss are the two sides of the coin of business and when its a turn of ‘loss’ then in government sector, it is the loss of the citizens;

Ø In today’s world of consumerism, people are conscious about their rights and ‘value for money’. They don’t mind paying off an extra 'shilling' from their pocket if the service or goods are better in quality;

Ø First let us delve into the health sector on India. We all know that treatment in Govt. hospitals (specially in block and/or municipal level) is cheaper but the life of your beloved is never cheap. So you want result, you don’t want to take any chance and if you can afford you go to the best hospital. You don’t mind, if it is a private one. Correct?

Ø Second, the aviation sector. Indian Airlines/ Air India has been given a fair chance to compete with private airliners operating in India for quite a long time. In fact ‘Spicejet” and Indigo’, the two private sector giants in the field of aviation started operation in India way back in 2005/2006.  But, the fact is well known to everybody, that Air India is running under such a loss that the recent attempt to sell it out has also fallen flat. It is not a fact that Air India has been the only looser. Kingfisher, Jet Airways also have suffered losses. So, its a competitive market and the fittest survives. Now the question remains, whether Govt. of India will carry through ‘Air India’, even after such losses, then the loss will be burdened upon the shoulder of poor Indians only;

Ø Third is the telecommunication sector. Here also the story has been the same more or less. BSNL could not survive  the competition against the private sector. Why is it so? That is a different topic that could be discussed on any other day. But, at the end of the day, the question remains the same. Whether loss making BSNL will survive only at the cost of public exchequer?

Ø Fourth, is the Indian Railway. Time has come whether it should also be put to test vis-a-vis private sector operators breaking its monopoly and below average service condition  both is passenger and freight sectors;

Ø Fifth, comes the insurance sector. After being put to the acid test with the private sector, only two public sector insurance company, namely National Insurance and New India Insurance could show a little bit of profit;

Ø Sixth is the power sector. We all know that metro cities of India  largely depend upon the private sector power generators compared to the public sectors and in semi rural and rural areas  where peoples paying power is less, they are just compromising with the service condition;

Ø The last but not the least is the education sector. In India the current scenario is that any educated Indian having an average monetary affordability thinks thrice before admitting his/her ward into a Govt. school. Why is it so? The answer is same. The quality matters. 

H  However, petroleum sector is amongst a very few commercial sectors in India, where state owned companies are giving a matching fight to the private sector companies. 

The gist of the entire discussion is that people are concerned about quality of life rather than quantity and as such for developing the economy of any nation, its govt. needs to shred some loss making burdens be it in employment sector, aviation sector, health sector or education sector.

Loss of a penny is the loss of a poor citizen. Govt. cannot afford to run in loss, otherwise the entire economy will be trapped under the burden of loan and its repayment. Growth will be retarded and day will come soon when we will find ourselves on the seats of Soviet Union or East Germany or Romania.

This is very harsh but this is the bitter truth. Privatisation of loss making sector is a sine qua non. Whichever party remains in opposition irrespective of the period, they will shout nevertheless, but Indian political history is the prime witness of the golden truth that from Indian National Congress to Janata Dal,  from coalition Govt. to Modi Govt. no party could deny this reality.

======================================== 

Photo- https://pixabay.com/photos/the-dollar-america-currency-finance-3125419/