What the Left needs to learn from their Chinese Comrades?

It's a common fear among all the sections particularly in the urban & business community that the LEFT will put breaks to the continuing economic reforms. The big debates raised by the LEFT is not selling of PSUs that too profit making PSUs to the private companies. I hope this article will give them some real meaning into why the government should not be manning enterprises.

Excerpts from that article:

"Take Dongfeng Motor Corp., a company comparable with India's Maruti Udyog. The company has just created China's biggest automobile joint venture by becoming an equal partner with Japan's Nissan Motors in a $2-billion project that will produce 620,000 vehicles - 320,000 Dongfeng-branded commercial vehicles and 300,000 Nissan-branded passenger vehicles."

"Shortly after Li announced the widening of China's privatisation and disinvestment, Zhang Silin, minister of labour and social security, said over 20% (9 million) of China's remaining 42 million SOE workers would probably lose their jobs by 2006, when the restructuring of China's public sector is expected to be completed. Zhang said that by 2006 the government would also close its re-employment service agencies, which were introduced in 1998 as an interim measure to help laid-off workers and which claims to have placed about five million people so far."

"Kodak has now signed a $100-million, 20-year co-operative deal with Lucky Film under which Kodak will contribute $45 million in cash and provide an emulsion-making line for colour products to Lucky in exchange for a 20% stake in the company.

It's a win-win situation - Kodak gets into the Chinese market, Lucky gets funds and technology, and consumers get better services. Some jobs may be lost in the short term, but Kodak's investment will secure Lucky's future. It will be guarded from turning sick and either shedding all its jobs or swallowing up millions in public money in a bid to stay afloat."

Why Privatising matters? 2 simple realities will give the answer. The telecom was privatised and now the no. of cellphones both GSM & CDMA will overtake the total no. of landlines in 2005... which means, what the government was not able to do in last 45 years was done by the private players in just 10 years...

Banking was considered only for rich & bankers behaved like PMs of their branches. Once private banking came in and technology influenced banking started rolling, all the PSBs are following the same road. With retail banking in its peak, in 5 years from now, India will outsmart US for the no. of bank accounts and the amount of daily transactions.

Will the left think right in this issue....budget will let us know

For the full article Click here