Saturday, January 13, 2007

Why Private Participation?

Every time I hear words like: "private sector should participate in rural telecom", "infrastructure should be given in the hands of the private sector", etc., I feel sick. Why do people say so? Is it because private sector runs better than public? Is it because private sector is more honest/efficient than government? Or is it because they no longer trust the government officials?

I believe that it is a mixture of all these. Whoever is saying these statements is just being myopic. He simply wants to cure the sector of his choice but does not sees the government as a single body. All those are problems plaguing the whole system. Even if we weed it out from one or two places, it will still continue to affect and disturb our lives. Or does he suggest that the whole government be privatized? While it can be debated what all be the responsibility of government and what all stuff can be left to the markets. But privatization? No way!

There is a very good reason why Government should continue handling critical sectors like infrastructure, power etc: we pay them taxes. They should not shun responsibility in veil of making things efficient. Else, it should reduce taxes ;) and anyways, whoever takes up the task will become corrupt.

What should be the ideal model? In my opinion, government should keep subjects like policy making, law enforcement to itself. Subjects like transportation, infrastructure, power, telecom, education, sports should be left to the private sector to do. And there should be a regulatory body having representation from babus, judiciary and prominent public from that field to overlook the long term working. Government should distance itself from the day-to-day working of most departments.

If we look at places where it has worked, telecom is a classic example. Government just framed the policies and set-up TRAI. Since then, the telecom sector has grown by leaps and bounds! The connectivity in urban areas has become excellent! Until government had monopoly in this field, it was growing at snail's pace.

We have already seen examples of different models and know which one has the best chances to work good. Let us introduce this model in other sectors and try if it helps. I have faith in this arrangement and hope that this model works for the good of India's future and collective good of Indians.

Jai Hind!

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