time for a bit more privatization

Posted: September 23, 2010 in social
Tags: , , , , ,
Store closing: half-off

time to move on

one of the most significant changes introduced to the the Indian economy was the policy of privatization. privatization means the process of transfer of ownership of a firm from public sector to private sector. the economy has benefited a lot from this. but there were still a few industries were the private sector was not allowed to enter. these industries are considered to be of great strategic importance. one of the major consequences of the policy was that the performance of the industries falling under it increased significantly.

but in the present India there is a need for the private sector to enter into few more public sector industries so that the people could benefit from it. the public utility services are suffering from poor customer satisfaction. say the electricity department or the telecom services or the security issues.

there is very famous saying – ” in our country, you can guarantee pizza in 30 mins but not police, ambulance or firemen.”  moreover the term “sarkari naukri” ( government job) has become more like a criticism rather than a credit. most of the people in govt sector are negligent towards their duties. the job security is a major factor for this kind of a behavior. the govt employees know that their jobs are secured and thus they do not take it seriously. in fact today many youngsters aim for a govt job so they don’t have to work hard at work.

last night, there was a power cut in my locality. so i went to the electricity board office of my area to file a complaint. surprisingly there was not a single person in the office. the working hour as clearly mentioned on the notice board was till midnight it was just 6:30 p.m.

same is the case with police. the common characteristics of the police are that they are always late and corrupt. the newspapers are full of such examples. during the Mumbai attacks, most of the police involved were carrying .303s or self-loading rifles like those adopted by the British Army in the 1950s.

the question that arises is that why is the government not allowing the private sector to enter into these fields. the purpose of maintaining control to promote public welfare has already failed. instead if they are privatized then it will ensure better services along with consumer satisfaction. these inefficient sectors are only causing losses and huge government expenditures and the return is hardly noticeable. and we cannot affor to compromise when it comes to basic needs and our security.

i think that we can look at the situation differently. seeing the circumstances, this can be regarded as  a possible business opportunity. if these few inefficient sectors are opened for privatization, then they can be very profitable indeed. these fields will be new and very fresh for the entrepreneurs and they can fully exploit the scene( i mean in a positive way).

but the biggest benefiter will be the people. private sectors ensure better utilization of resources and efficiency and effectiveness in operations. they have a good and well qualified management board.

mind you guys that i am not suggesting 100% privatization of these sectors. no, that might not be a very good idea at this point. initially a little bit govt shares are require for issuing proper guidelines and regulations of the new investors. this would also help in protecting the security of the people from falling into wrong hands or emergence of a monopoly of a private firm in a crucial industry.

if the govt thinks about this idea and takes the necessary steps, then this would definitely be a good deal for the country.

  1. akanksha says:

    privatization in d defense sector is not a very good idea.. itz d govt who shud change n make their rules n policies strict…business firms will do nothing but business.. but no social welfare..
    though i would want d privatization of a less developed state.. like bihar..!!
    it can do wonders!!!!!!!!!!

    • shubho1308 says:

      by privatization i don’t mean 100% privatization. the govt can sell up to 49% of the shares and thus maintain full control to ensure social welfare. and anyways how much welfare are we seeing now. i agree private sectors would look for profits only, but remember that to earn profits they will have to satisfy their consumers. this rule may not be applicable to govt sectors as they carry on for years even after suffering huge losses repeatedly.

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