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Wednesday, February 19, 2020

Effects of Privatization or Privatisation

I have been asked to answer a question in Quora on my opinion about selling Air India to the private players. I wrote the below article as my reply for the question.

Question: Is the BJP government's decision to sell Air India correct?

Before answering this question directly, we need to understand the impact of privatization of the public sector organization. Few are thinking that, the organization will give better service to the people if it is private organization than being a public sector organization. This may be partially correct. We may get a better service from the private owners during the initial days. But what will happen after that few days is the big question mark.
Telcome Industy would be the best example for this. Instead of promoting and saving BSNL, government of India promoted private players. During the initial days, private players gave lot of offers to the people and attracted more customers to them. But what happened after the honeymoon period was different. Cost of the services got doubled and affordability was missing for few section of people. More than affordability, these private players will show their real face during the emergency. During the Chennai flood, only BSNL was active and all other network was down. BSNL proved that, they have moral responsibility to serve the citizens than the private players who’s only motive is profit. And what is happening to the BSNL is pathetic. More than 70k employees were given VRS.


Moreover, our founding fathers kick started India’s economy as the mixed economy. We neither followed capitalism nor communism. We followed the concept of socialism. In socialism, it would be the combination of both government and private. So we cannot avoid private players coming inside the market. But it’s the responsibility of the government to safeguard the public sector organization. But what the government of India is doing something opposite. They terribly fail to protect the public sector organization. Instead they are promoting private players. This is not just capitalism. This is crony capitalism.

In a nut shell, what will happen if the public sector organisation is diminished and private players take the opportunity
  1. Affordability will be missing
  2. 100% accessibility will be missing
  3. Profit > Service
So, if the BJP government sell Air India, it would be one of the biggest mistake. People will suffer because of this. The three points which I have said above will be the major problem for the people. And anything that went to the private owners will not come back to government. Government should think from the people’s service perspective and understand that all public sector organization are not meant to earn profit. It was formed to serve people. BJP should understand that, what they run is government elected by the people and not a private organization.

Note: During the corona virus crisis, When all the private players cancelled their service to china, Air India took the responsibility and rescued the people from China.

It’s all because, Air India is under the control of government of India. If it was in the hands of private players, they might have let the people to die in China itself.
By the way, BJP is giving back to the people who have voted for the 2nd term with absolute majority. It’s all because of the people who voted for BJP, people who didn’t vote are going to suffer.

Regards
Praveen
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Item Reviewed: Effects of Privatization or Privatisation Rating: 5 Reviewed By: Praveen Kumar Rajendran