Now, I do think some sectors perform better when not privatized, like trains and other industries or projects which function as public goods. We can lease out train operations and something tells me this will be good, because when not in private hands, they face no direct competition, in the absence of which they have little incentive to perform.
It would be good for sectors to be in private hands because if it isn’t, that’s government overreach.
We then have the interesting case of my nation of citizenship where public sectors don’t function but there’s plenty of overreach anywhere you turn. Now, the Modi administration has been awesome at setting targets to let go of these government chokeholds in every sector but beyond setting of targets there hasn’t been much else done.
The most curious part of the divestment targets set every year is not that they are never reached – which is totally fine. Setting targets challenges oneself so it’s good. However, there’s always an excuse for why they weren’t met. Every time.
The $26 bn target set now is big and there’s been nothing done towards it so far. I was wondering if it would be a good idea to start with manufacturing businesses, factories, and banks that the government runs.
The banking sector is always a few steps from collapse and it’d be a fine idea to let them be in capable, prudent, private hands who will take adequate steps to ensure its survival.
Privatisation is for the brave, there are no two ways about it.