Privatisation

A high rise architecturally genius building holding offices; the executives running from pillar to post, day in and out 24/7 in order to maximise their earnings…

Another official looking building; a few people can be seen working, some are lazing around and some are simply missing…

It is anybody’s guess what the two situations are… first is how any privately owned firm works, and the other is how our responsible government and its employees utilize our money for their own good.

The lack of motivation and purpose is the basic difference between private and government functioning. In private firms, people are driven by profit making, which is distributed among the employees on the basis of their performance. So people have an incentive to work for. Whereas in government organisations, the purpose is public good, no direct profits and employees are entitled to claim a fixed salary, whether they work for it or not. Without any scope of an increase in the income, people accept bribes. And none is unaware of how this has led to furthering of the now deeply rooted corruption in our government and bureaucracy.

In spite of this, our country still has a few ‘Navratanas’: the few lucrative government establishments or Public Sector Undertakings (PSUs) like ONGC, SBI, BHEL, Air India, etc. In the recent past, the government has been on a disinvestments spree as well… selling its loss incurring companies to individuals or other organisations (the controversy regarding sales such as that of Centaur Hotel being a different issue).

Many a times, the government finds itself in a tight spot, unable to deliver on its promises. To find a way out of such situations, it treads on the path of privatisation. The only assumption made is: by mere handing over of control to someone else, the situation will resolve itself. The analysis of how the private sector will revitalise the sick unit is not made. The capital inflow in the unit due to privatisation is a huge factor, but funds can be arranged otherwise as well.

In the capital, electricity has been privatised. What benefits have the citizens received…? None. No change in the power crisis till date. No new sources of power generation, frequent and long power cuts still happen, electricity theft is still an issue, and to top it all, the prices have been increased. This is a perfect example to prove the assumption false.

Presently, privatisation of the water supply is under consideration. The government needs to be mindful of the fact that the only governing factors in the private sector are profits and competition. Handing over a basic amenity like water is not in the best of interests of the public. Under private operators, the prices are bound to rise in such a monopolised segment, resulting in further deprivation for the poor. To cut down on costs, water treatment for contamination might be compromised, resulting in wide spread epidemic due to water-born diseases. Instead, the government should concentrate its sources in making the distribution network leak-proof, the main culprit of water shortage in most areas.

Privatisation can prove to be beneficial in any competitive sector. The previously owned government telecom company, BSNL, is now a part of the TATA enterprise; the Japanese automobile giant, Suzuki Motor Corporation, now owns 51% stake in Maruti Udyog Limited. These are the success stories of privatisation. They bring with them hard-working staff, structured management, and above all the instinct or drive to turn things in their favour.

Our country is diverse in many aspects. Capitalism alone can’t work here and Socialism is required for the welfare of all the communities, with special attention being given to the poor.