Another government and a renewed attempt at divestment in PSUs. The issue has never been addressed with the pragmatism it deserves
Command economies of the socialist variety have held on to state run enterprises. ,far beyond limits of business prudence.Every nation has made efforts to take up privatisation of PSUs and the success thereof has been proportional to political will .Russia bungled and handed over vital units to powerful oligarchs .China did slightly better and yet it's top 100 enterprises are still public owned.Britain under Thatcher went on a ideological spree in the 1980s and sold off major state run businesses .In the process her critics accuse her of wiping out 15% of the British industrial base.We have gone about divestment in fits and starts.Most of our sick units are insolvent but yet liquid.These can still be sold off without much damage to all stakeholders, as they need fresh management and technical upgrade.The political will is all that is needed.As regards PSUs that are doing well, private shareholder participation will give them the requisite edge to be competitive and commercially evolve into business majors.Let us not sell family silver only to pay back debt and recover from deficits.We must do it because it would make business sense.Divestment
Command economies of the socialist variety have held on to state run enterprises. ,far beyond limits of business prudence.Every nation has made efforts to take up privatisation of PSUs and the success thereof has been proportional to political will .Russia bungled and handed over vital units to powerful oligarchs .China did slightly better and yet it's top 100 enterprises are still public owned.Britain under Thatcher went on a ideological spree in the 1980s and sold off major state run businesses .In the process her critics accuse her of wiping out 15% of the British industrial base.We have gone about divestment in fits and starts.Most of our sick units are insolvent but yet liquid.These can still be sold off without much damage to all stakeholders, as they need fresh management and technical upgrade.The political will is all that is needed.As regards PSUs that are doing well, private shareholder participation will give them the requisite edge to be competitive and commercially evolve into business majors.Let us not sell family silver only to pay back debt and recover from deficits.We must do it because it would make business sense.Divestment
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