PUBLIC SECTOR REFORMS

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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