Comment by sirtaj
20 days ago
It's not surprising. For one, stated vs actual goals always differ and someone needs pockets to reach into. For the other, plenty of countries that listened to orgs like the World Bank saying "privatise everything immediately and reap the benefits!" just ended up handing the assets to cronies. Examples like Russia are of course well-known, but it's obviously happening under BJP in India as well.
It's once again lamentable, but somewhat predictable that even on a post about how privatization fixed, in five years, a problem that persisted for 50, you insist on spreading boogeyman tales about privatization. The Indian government is what American libertarians are afraid of, and in their defense, they should be afraid.
Boogeyman? Is the outcome of the World Bank's insistence on "structural adjustments" somehow in debate now?
I was in Delhi when this started and they began laying out the tamper-proof cable back in the early 2000s. At that time, railway food had been privatised, perhaps you recall. It wasn't better. The problem was not the privatisation or lack thereof, it was the complete lack of accountability.
I'm not referring to the World Bank, but rather the idea that BJP's privatization push is somehow benefiting cronies. This is a widely reported accusation by the INC, but like most of their accusations, it seems to be a matter of slinging mud at the wall and seeing what sticks.
Part of accountability is the possibility for failure and the associated consequences. PSUs have no fear of failure, since they're fundamentally parasitic, living as they are on the tax receipts of the beleaguered middle class. Private industry either increases efficiency to the point of profit, or goes under, simple as. Show me the incentive, and I'll show you the results!
Of course, if there is complete government capture by industry, then there is no more risk of failure, and you have privatized PSUs. But let's say this, from 1947-1991, India traded the British for the IAS. Hardly much of an improvement. The only way to reduce their power is to transfer it to the private sector, outside of areas where the utility of the activity is all externality (e.g. defense, scientific research). We have to move in this direction or risk returning to the License Raj era. Perhaps this will create more problems, but at least our children won't curse us for leaving them with our parents' problems.
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> you insist on spreading boogeyman tales about privatization
Dude, you're the one coming across as a zealot here.