( In INDIA )

Weakness of Public System

PUBLIC GOODS AND SERVICES

Public Goods By GOI– Roads ,Sidewalks – Parks ,Museums – Water and electricity

Public Services By GOI– Police Protection – Garbage Collection

MARKET FAILURE

1. Imperfect competition

2. Monopoly

3. In public goods

4. And in Economic infrastructure

Communication and IT

The government sector has taken the leap into

adopting IT and made huge investments in it, but

they are still way behind when it comes to

addressing the security concerns, training the staff

and adopting the technological advancement

extensively.

Communication& IT

Coal India’s CoalNet programme meant for data sharing between coal ministry, Coal India Ltd. and its subsidiaries, which cost the company around Rs 40 crore, was not implemented completely in any of the subsidiary companies even after seven years.

In the case of defence ministry’s Bharat Electronics Ltd, the enterprise resource planning (ERP) project was found to be dangerous to unauthorised access to data.

Telecom

BSNL* (Bharat ki sabse Nalayak Line)

(EXAMPLES)

Power

Over 150,000 MW of hydel power is yet to be tapped in India

India requires an additional 100,000 MW of generation capacity by 2012.

A Quote in TOI news paper a year ago was

“NO PROVISIONS FOR POWER CUTS TILL 2013”

Transport

Highways

Annual growth projected at 12-15% for passenger traffic, and 15-18% for cargo traffic

Highways/Expressways constitute about 66,590 kms (2% of all roads) and carry 40% of the road traffic

Roads carry about 61% of the freight and 85% of the passenger traffic.

Contd…

Railways

Ports

Airports

Sports Bodies

Sports Centres/Institutions – Lakshmibai National College of Physical Education (LNCPE), Thiruvananthapuram – Lakshmibai National Institute of Physical Education (LNIPE) – Netaji Subhas National Institute of Sports (NSNIS) – Rajiv Gandhi National Institute of Youth Development (RGNIYD) – Syama Prasad Mookerjee National Institute of Watersports (NIWS)

Others– Directorate of Mountaineering and Allied Sports (DMAS), Himachal Pradesh – Directorate of Sports and Youth Welfare, Madhya Pradesh – Ministry of Youth Affairs and Sports – Sports and Youth Welfare Department, Haryana – Sports Goods Export Promotion Council (SGEPC) – All India Chess Federation – All India Tennis Association (AITA) – Archery Association of India (AAI) – Indian Hockey Federation (IHF) – Indian Olympic Association (IOA) – Maharashtra State Rowing Association (MRA) – Sports Authority of India (SAI) – Sports Development Authority of Tamil Nadu (SDAT)

Reasons

Political and Bureaucratic Interference shifting

the ability to innovate.

Excessive social welfare Expenditure.

Burden of Taken-over private system sick units.

And finally the king of all CORRUPTION .

Recommendations

The area of public should be limited in future

– Essential manufactured Goods. – Exploration and Exploitation of oil and mineral

resources.– Technology development and building of

manufacturing capabilities in areas, which are crucial in long term development of Economy.

– Strategic are – Defense equipment.

By Rajeev Chowksey

Thank You for your kind attention