Wednesday, May 9, 2018

Role of Government and roles of Private Sector : Public Policy Choices.


There are many think that the government must to do everything. Though in democratic context, government is supposed to be that of people, in effect government consist of a bloated and often self-preserving bureaucracy that often is neither responsive nor accountable. Such bureaucratic establishments often lacks the capacity or expertise to do everything. In fact , Government must not do everything. Private sector and corporate sector has a legitimate role in a democratic society. Civil society and civil society organisations too got such an important role in ensuring rights, freedom and justice and making government responsive. Many who think themselves are 'socialists' are still driven by the old discredited model Soviet type 'statism' and they tend to think that anything by government is 'public' by definition, though they are controlled by a political -bureaucratic elites. Government must do its basic functions.
There are some basic functions of the democratic state and governments :
Ensuring physical , social , environmental ,political and economic security and safety of all people in its territory from external , internal factors and natural disasters.;
Ensuring rule of law and law and order.
Ensuring free and fair elections .
Ensuring balance of power between Legislature , Executive and Judiciary . Ensuring basic services like access to affordable education , health , water , sanitation and public roads and transport(including Railways) and communications: ensuring equal access to justice and human rights of all people , particularly the marginalized .
Ensuring the defense of its territory .
Ensuring the protection of environment, natural resources and heritage .
Ensuring fiscal and economic management and creating economic opportunities for decent employment and economic and social well being of all. Ensuing government institutions/systems are inclusive , responsive , capable, transparent and accountable .
Ensuing to be responsible country in international affairs , promoting trade , peace, protection of planet , human rights and supporting a world without poverty and discrimination .
I don't think each and everything needs to be done by the government At a time when private sector did not have capacity , government got in to many areas including manufacturing and enterprise development. However many of these ended up as ineffective and loss making enterprises as they became fiefdoms of ruling political and bureaucratic elites . Government may seek the support of private sector or civil society organisation when it does not have capacity to deliver or when it fails due to the lack of capacity of bureaucracy to be responsive and effective.
Many consider socialism as statisam and statisam as governentalism . Socialism and social democracy for me is ensuing distributive justice resulting in economic and social justice and human rights for all. This is done through progressive taxation, and special social justice policies to protect and support historically, socially ,and economically marginalized groups .
Social Democracy is not about statism and governmentalism of everything controlled by a political -bureaucratic elites , on 'behalf ' of people .
The fact of the matter is that despite an elected political executive , the real operationalized power of government is with a self preserving bureaucracy .And often they are least accountable . Examples are too many .
I don't think private initiative , enterprise or private sector are evil. I don't think private property is a sin. I don't think corporate sector per se are all villains. The development of private sector , healthy competition , robust market , and economy are important for ensuing gainful employment and social and economic well being of a nation .Private initiatives are so important for innovations in research , science and technology .
However the problem is when economic elites and political elites build nexus with media and bureaucratic elites to facilitate crony capitalism that undermine freedom , justice and rights of people leading to social , economic and political inequality . Often such nexus and crony corporatism leads to restriction of freedom , and lead to fascist tendencies. Hence though I fully support healthy private sector and market , I am not for monopoly capitalism and crony capitalism that undermine freedom of people and sustainability of planet .
Many who works even private companies think private sector is evil . I don't think so. Private Sector need too to be accountable , responsible and work within a democratic system
Many who consider anything private as evil are often government parasites( political elites and their cronies) and think government has all answer for all our problem .Many think government should do every thing under the sun. Many think government should be the chief patronizing agent and distributor of all kinds of patronage .
There are things government must do. However , there are areas where government simply can not be effective and efficient largely due to bureaucratic apathy and lack of capacity and innovation . For example ,twenty years ago, our Airports were in a bad condition, not managed well by the tired bureaucratic establishment. Now we have some of the best airports at the international level, managed by private actors . Look at the quality of Kochi Airport .Mumbai ,Delhi ,Bangalore .The quality and performance of private airlines are indeed better . However government also has a role to ensure affordable public transport and railways as it is to ensure that all people have access to safe , effective and affordable transport .
Government must do what they must do as a democratic obligation. And both private sector as well as civil society too got an equally important role to play to ensure a free societies with innovations , creativity and human rights for all.

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