FORUM
FOR POLITICAL UNITY OF INDIA
How to make
Public Sector more responsible and a huge value creator?
First Prime Minister of free
India Sri Jawaharlal Nehru in sharp contrast to his mentor Mahatma Gandhi laid
the foundation of commanding heights of the economy; the other name of Public
Sector enterprises. Many commentators argue in favor of Gandhi’s ‘Village
Swaraj’ economic model than ‘Nehruvian Social economy’ though, goal of both
remained social progress with economic development and growth with equity. But,
approach in two models was starkly different one favored bottom up and other
top down; today, with the benefit and luxury of hindsight; we can safely
conclude that both technique was apt for India then and holds good even now. Coming back to the issue
of making our public sector little more responsible and a value creator of
difference; we should dwell little on the malaise/ weakness of the public
sector before attempting to figure out the remedies.
Public Sector greatest
weakness has been lack of entrepreneurship in its top management though there
are a few organizations that are running better than their Private Sector
peers; one such organization is NTPC and NALCO. The other weakness of ‘PS’
being the bureaucratic interference, HR policy devoid of meritocracy, lack of a
sense of belonging(Sarkari Mal Daria Mein Dal). The state of affairs in Air India is live testimony about destruction of a huge public
institution by administrative lapses and political and bureaucratic
interference. However, Public Sector still holds the “commanding heights” its
diversity, size; talent and assets could put organizations in fortune 500 into
shame. One simple change could make our public sector flourish and support
public exchequer in very good measure. But, it depends if the Political Bosses
of Govt. and Opposition agree on consolidating the ‘PS’ for the benefit of poor
people for whose benefit this was created in the first place.
Business has to be
Businesslike and better managed by Businessmen or Professionals; that is
ordinarily not the cup of tea for both Politicians and Bureaucrats; though,
there are some young Politicians who run very successful business like Naveen
Jindal and Bureaucrats like Mr. Bhargava & Mr. Jadish Khatter who led
private business very successfully, those are only exceptions.
A simple strategy can be put
in place by which all public sectors can be arranged in 3 identical groups:
Manufacturing, Services and Banking and create a group holding company for each
to bring sharper focus on the business apart from stopping direct involvement
and interference of ministry concerned, bureaucrat and politicians on business
policy and its execution though ministry would be represented in the board of
holding company. Govt. should only be concerned with its growth in asset value
and its dividend. We do not have to go too far to see a role model for this
kind of an arrangement as The TATA Group/ TATA SONS LTD the holding company of all organizations in TATA
group follow an identical arrangement in trusteeship to enhance shareholders
value. Our public sector should follow in the foot steps of TATA for larger
public good.
Bikash Choudhury
Convener
E-mail:forum4politicalunity@gmail.com
Twitter: @ideasofhope Blog: www.ideasofhopebikash.blogspot.com
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