Is Privatization Panacea For All Ills?

Is Privatization Panacea For All Ills?

The underlying factor is the frustration that user’s experience given the awful quality of the services. One feels helpless and unable to do anything about the same. There is a general belief that privatization may be the answer. This is the tragedy of the Indian intelligentsia that engages in juvenile debates about the same. A brief history is required and it would become amply clear that privatization is another name for imperialism and how harmful it is for the country.

It all started back around 15th century when the Europeans wanted a share of the wealth that passed through Africa and Asia. Since Spaniards had a formidable navy, they were the first ones to “explore the world”. It was Gold and Glory that got them to conquer the foreign lands. They destroyed the local economies and gave a second-class status to the natives. It is futile to prolong the narrative, which is out of scope here. Fast forward to British rule in India and contemporary historians describe it as the dark period in the history of nation that was described as the “Golden kingdom”.

After the World War II, there was a realignment of the former colonies under their rule. It was not that Indians had so far discovered the “moral strength” to overcome British. The fact was that there was widespread mutiny in Indian army; hence, the British were forced to leave. As I mentioned, they set up institutions like World Bank and International Monetary Fund (IMF), which remains a front for these neoliberals.

With this brief history in mind, it is important enough to discuss the various factors behind the reason for “globalization”. It has brought in hordes of Multinational Corporations (MNC), which seek to invest in the “foreign countries”. These MNC remain a front for these Governments who dictate the foreign policy by proxy. Since they control the media on a widespread scale, it is obvious that they carry out their propaganda through the same. Therefore, these debates that globalization is bringing about “Social and cultural revolution” is all crap. Fact is the South Asian meltdown amply proved the fragility of the World Bank and IMF dictated policies. Why this didn’t happen in India at that time? This was because India was isolated far more than it is today. In other words, institutions like World Trade Organization remain another front for extension of their hegemony. Routinely we are lectured on the benefits of increased FDI in the India industrial sector. To propagate these myths, industry has formed an association, which remains pro government irrespective of the government at the centre. I mean, haven’t you noticed after the budget presentation as to how these heads keep on gushing about the “dynamic budget”? The reality on the ground is vastly different from the statistics. Inflation may be around 5% but then, there are different ways to calculate the same. Irrespective of the same, anyone would testify that prices are increasing.

Is this sufficient enough for our country? I have my doubts and apprehensions because one needs to learn from History. If we fail in that, there is no unfortunate nation.

Without going in further details, the hike in the Foreign Direct Investment is an ill planned step, which is retrogressive in nature. It is like giving away the family silver in times of happiness.

The primary complaints have been with the quality of services. No one in this country wants to complain for shoddy services. BSNL and MTNL have got away with almost everything when they were in a monopoly. Everything changed AFTER they were forced to show results. The customer care centers sprung up in every city. The roll out of the mobile services. I mean look at the amazing progress that they have made. Yet, it is difficult to shake of the lethargy of 50+ years, which has percolated down to their genes.

The fact is that I strongly favor the control of our assets in our own hands. I do not need anyone with dubious record lecturing me to open up my resources in the name of increased profits. How the money is repatriated out of this country is well known. Would these people pay at par with the developed countries? There have been reports of discrimination on the same.

What is the argument that increased privatization leads to better quality of services? For example, Sify is a NASDAQ listed company with wide ranging interests. Yet, there are confirmed Sify haters on line given the increased number of complaints against them. It is a different matter altogether that they refuse to heed to complaints or act on them to improve on the same.

Isn’t that surprising that MTNL’s CDMA services got thumbs up from satisfied customers? What happened to the biggies? Arguably, the quality survey may be flawed in its assumptions, yet it is a pointer towards the fact that there is a lot that needs to be done.

This is a worrying trend; all the talk about BSNL and MTNL merger. Make it slow step, as the governments are loath to do. Increasingly there is a talk in the media about synergisms between these two companies for “operational reasons”. Whatever the heck they do, it is clearly a step closer towards integrating both the companies and finally selling them off en bloc. If private sectors is so good and are like angels with wings, why doesn’t VSNL deal with Airtel to open up their local loop for competition? Why is that BSNL is being pointed at? Let Airtel take the lead and invite competition on its own networks. I would appreciate it more then. Yet, all in the name of 128 kbps or less that is marketed as “broadband”.

In the foregoing account, I believe that national security remains paramount. Any debate needs to be structured and based on facts. It is easy to dismiss the idea that privatization would in any way affect India. Yet, I strongly feel that those people need to woken up from their slumber. The nation’s assets should remain in the hands of Indians.

I had earlier argued that privatization has only benefited the foreign companies. If they wanted, these companies could have invested in building up Research and Development in India. It has not happened and one of the biggest tragedies of Indian Telecom. The fact remains that it points towards the myopic ideas of the decision-making bodies in the governance who have not weighed in national interests before formulating those policies.

Hope. This “four letter word” is what I am live on!

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This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.