Wednesday, December 23, 2009

Public-Private entente

I studied Economics in College & University...not that I understand the mechanisms of the economy very well. While studying the role of Public Sector, I learnt that Private Players in any area – Infrastructure, Agriculture operate on the basis of market forces – Demand & Supply. The role of the Government comes in with a more egalitarian & samaritan flavour. Today, if I set myself in a venture, I would price my commodity or service with two simple objectives – Maximization of Profit and Minimization of Costs. As a private player, I am justified in doing so probably a shed more justified than the Government doing the same thing. But Honestly, I wouldn’t really mind if the Government too works on the same principle, because as an Economy matures, that should be the practice. The people should be that well-off to afford the goods & services at market price, and gradually putting an end to subsidized regime. But my problem is something entirely different...The Government is closing down its profitable concerns because private players are bribing them to do so! This is absolutely not acceptable....the private players want to have a greater market share, & they bribe the Government...who suffers....? Who else, but we!!

I’ll quote a personal example – There used to be quite a few state-run buses plying between Salt Lake & various parts of the City. For the benefit of those who have not been to Calcutta, these buses are fast, big, and provide the commuters far greater comfort than those belonging to the private players. The recently deceased Transport minister Subhas Chakraborty (God, rest his soul in peace!) shut them down gradually, and in turn made loads of money which I believe his family is enjoying presently. The kind of transport left has added to the woe, leads to increases misdeeds (the shuttle accident & molestation I am referring to).

Something needs to be done...and it’s we consumers who can do it. We can’t let these buggers get away with this!

2 comments:

  1. could be true for the case in point above, but govt. also does stop/modify certain services to let consumers get better quality and break monopoly of their own units.

    Consider the indian telecom industry some 10 years back,ppl use to live on the mercy of bsnl engineers to get a new connection,bribe them, wait for ages to get a snag rectified.
    Now, post opening the telecom sector, we have better quality, better service and competitive pricings !!

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  2. Dude, you are right when it is about telecom though BSNL has evolved for the better (if u check out their website), provided services in areas of India where no private player would go in....Besides what I said is true about many manufacturing units as well.

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