I love this article about how in all areas in India that were traditionally controlled by the government, and now opened to the private sector we see massive improvement. Also, the single area which government should have been playing a good role at, i.e. law, the government has been a dismal failure. He almost says that even law should be privatized, but stops short.
This is the article and some selected quotes fomr the article below:
|
The private sector has done more than expected. India's software industry is world class. Indian manufacturing has finally become competitive: exports have grown by over 30% annually for three years. Indian companies are making foreign acquisitions galore and becoming MNCs - Tata Steel, Bharat Forge, Tata Motors and Ranbaxy are a few examples.
|
|
Power was long a state monopoly, and state electricity boards were bankrupt when reforms began in 1991. They sought refuge in independent power producers like Enron, but these degenerated into a fiasco. How then did India produce enough power for record economic growth? Well, old power stations improved their load factor. But the main reason is that corporations decided they could not rely on government supplies, and set up 20,000 MW of captive power.
|
|
The second green revolution is being energised by the private sector, not the public sector. Reliance has led the charge into rural areas in Punjab with a farm-to-fork operation - managing the chain from seeds and crops to processing and hypermarket sales. ITC is rapidly expanding its e-choupals, computerised kiosks for farm information and for buying produce. The Mahindras, Tatas and Shrirams are setting up rural supermarkets.
|
The government developed the idea of deficiency payments for roads, with the contract going to the bidder requiring the lowest toll subsidy. But now some bidders are willing to pay a fee rather than demand subsidies
|
