Two
concepts are there first is that of Adam Smith's, who talked about
laissez-faire and emphasises upon market economy with almost no intervention of
state and second is that of John Maynard Keynes also called Keynesian theory who talked about strong
intervention of state in market economy. Now the importance of raising this
issue today is hidden in the event which the whole world witnessed from 1929 to
1933 that is the period of the great depression. Till then every thing was
quite good, market economy was doing quite well and the concept of
laissez-faire was proving to be a quite handy concept since it was increasing
the competition among the service providers and thus was quite good for
consumers also. But the great depression of 1929-1933 made it wrong. And then came the Keynesian
theory with emphasis on intervention of state in market economy and helped the
world economy to overcome the great depression.
The
same situation seems to be appearing now also. And our government is
disinvesting all the public sector undertakings (PSU) even that also which are
in profit. While we are a welfare state and the fact that private companies
looks for profit only, they don't care about the welfare of the people or about
the social security. Hence it is the first duty of government to ensure social
security and welfare of the people along with facilitating the private sector.
There
is no doubt that liberalisation, privatization and globalisation has helped us
a lot to strengthen our economy but it is also true that we are a developing
country and a large section of society is still below the poverty line. As we
can see the people on road now a days walking thousand of km to reach their
native land. Hence it is true that poverty is there in our country and
everything is not good. Hence the importance of state intervention increases
many fold in our country as compared to others. And for this the importance of
PSU'S is much more for us since it
strengthen the hand of state economically. But unfortunately now a days it has
become the means of making money, the asset which this country has developed is
being sell out at the throw away prices, some of them are profit making
undertakings also. It becomes more doubtful and irreconcilable when you are
selling a profit making undertaking at throw away price and on the other hand
investing in a almost insolvent private banking company like YES Bank. It is
good that you are heading towards New Public Management but not at the cost of
the people of this country. Since we are a welfare state there must be an
alternative source of income, levying different taxes on public and corporates
could not be the only source of income rather there must be some other
sustainable source of income too and public undertaking could be one of them.
As
a welfare state and with an objective of achieving the socialistic pattern of
society through democratic means, disinvestment is not at all in the interest
of the republic ethos of this country. One can not give all the resources of
production in the hand of few capitalists. It is not the matter of which theory
you are adopting, either the theory of laissez faire or Keynesian theory rather
it is about the reaching to the people who are the most marginalized and
derived, the people who are on the road. But the present situation of this
country gives the feeling that the whole resource of this country is being
given to the rich and the deprived and destitute are confined only to
assurances and speeches.
If
it is the new nationalism which this government is talking about then they must
consult some real experts since it has been
neither the objective of the constitution nor the way of heading towards
the inclusive development of this country. It seems like neither we are heading
towards the way of Adam Smith nor Keynesian theory rather toward promoting
crony capitalism or towards parking all the resources of this country in the
hand of few capitalists. Self reliance is very good concept but it is not
possible unless the poor and deprived are not made self reliant first. And it
is only possible when government will take some resources from the rich and
will distribute them in deprived. It would be also the way of heading towards
making a socialistic pattern of society through democratic means. Hence the
whole and sole objective of government should be to strengthen the situation of
poor and deprived and private sector facilitation should be the secondary
objective.
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