In the past few years, have you heard people saying that,
Is the government selling everything to private players ? Taking a few big businessman names and frequently debating about it.
Instead of criticizing, have you ever thought of why they want to do this ?
Have you heard about minimum government and maximum governance?
The government wants to establish firm boundaries while involving less in the day-to-day activities of the public sector and handing over to private owners. As they were creating a vast number of hindrances and problems. Government involvement is creating delays and obstacles. The decision to hand over many loss-making and low productivity institutions to private entities.
The reasons why governments want privatisation?
The institutions which have low productivity and high cost. Creates imbalance and excessive expenditure rather than profits. Would it become a liability to the government, right ?
* In many areas, there are excessive employees but with low productivity, including pension and other facilities. Can you think the government can pay all of them for 60 years and more ?
* Lack of jobs for young people and the older population working for a long time without proper output ?
* Lack of innovation and adaptable minds regarding the latest technology.
* Less investment, more expenditure and time-consuming
* The government management is a slow and rigid system.
* Bureaucratic hurdles and stagnant growth.
If these institutions are given to private players or business owners.
The government would only take tax, the rest of everything is handled by private players. It would increase the staff, innovative methods, and more funding independently. Quick methods and high productivity as the government is out of the major work process. It helps in less dependency on the government and builds an entrepreneurial culture in young people. The organizations would work on merit-based and performance-based rather than government rule-based. The competitive mindset would increase the speed of economic growth and less burden on the government. The reduction of politics, unions and protests would be reduced. Quick recruitment procedures and more vacancies.
Criticism of the government selling to private players by people.
*People frequently say that privatisation will reduce the caste system and reservation based jobs, and it is a plan to reduce jobs.
*Only a few individuals would earn more money.
*What about the underperforming employees or old employees?
* Even governments have become commercial now.
Overall, privatization will be the future of India. As the government can provide only few jobs with minimum number of vacancies. The entrepreneurship culture and the mindset of jobseeker to job-giver should be the mantra for India.
