Sociology of Privatization

Privatization is one of the best known and most debated facets of India's economic reforms agenda. The economic controls were removed in 1991 following the fiscal cum BoP crisis and we began to follow the prescriptions of the mighty global institutions like World Bank and IMF. The goal was to achieve the economic 'nirvana'. Liberalization had already become a cliche in the international economic policy circles and one Indian economist had gone to the extent of calling the so called reforms as 'liberalization dogma.' The country soon began to catch the sight of nirvana with the federal and state governments making privatization/divestment the main plank of their governance/political agendas and the dynamic private sector lapping up the opportunities spawned therefrom. How can we forget the good guys of NDA governments who kept us hooked to the fascinating slide show of disinvestment decisions affecting the sacred cows like Balco, IPCL and Maruti? Was strategic sale not a household word in India? Had privatization not stopped being a bizzare policy concept hurting our Nehruvian and socialistic sensibilities? Things did change. We began to celebrate the economic boom sans bureaucratic and political controls. The private sector players were not bad guys. They had a role to play in nation-building. Barring occassional shouts and murmurs of the Left parties, privatization appeared a smooth ride on the road to success. We were walking on air.

The UPA government did spoil the party but deep down they also remained committed to privatization. The Manmohan Singh team was shackled by the Left allies. The good guys in the government huffed and frowned but could do nothing to take the agenda forward. Politics carried the day, unfortunately.

With this recap of the reforms journey, we may now get down to evaluate the progress made so far. Let us leave the jargon and data to economists and journalists. Everybody may now acknowledge that private sector can also deliver public good. We have begun to entrust our critical installations to private players- airports, refineries, sea ports, roads and telecom. Isn't it a world class experience to roam the premises of Mumbai airport being developed by GVK? Other surprises are already in the offing. Be a little more thoughtful and you may find that we are leaving out something in this racy thriller of making of an advanced India. Like our national freedom movement, I'm afraid, the economic reforms process may soon end up facing a charge of not being sufficiently inclusive. We are modernizing our airports but our bus terminals are frozen in time. Visit Delhi airport being developed by GMR and visit the ISBT to know the chinks in the privatization story. Nirvana is being achieved only by the upwardly mobile and financially strong middle class. The poor and the underprivileged, the common man still stand outside this circle of economic reason. We have not started upgrading our bus terminals and railway stations. Such places still remind us of the India that flounders about in carrying out development. The downside of life appears preponderant and we're faced with the question if the development agenda has been hijacked by the rich and moneyed. I assure you I do not worship Marx and there is no intention to revive the brand whose shelf life is long over. But the issue of social inclusion of economic reforms stares in the policy maker's face. The message rings loud and clear. The agenda is not finished yet. The job is far from over. The road to nirvana runs steeply uphill.
Get a GMR to turnaround ISBT.

-DIPAN ANJARIA