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Re: pre-debate, article, source material


I guess we have more or less summarized the article already in the
preamble. The issue is not to close down govt. (since governance may
require a larger and more powerful government in some cases), but to
ensure that only that sector does the job best which is best suited to it:
it is almost always going to be an issue of imperfect markets vs imperfect
govt. In most usual 'business' activities such as banking, insurance,
producing cloth, steel, ships and planes, etc., the imperfect market does
a superlative job in comparison to the imperfect govt. That is the
empirical evidence. That is precisely what we are trying to record in the
manifesto. Even in these activities, regulation is needed to protect the
consumer. The question is how much: well, as little as is necessary to get
the best results. 

Second, govt. has to become specialized. We cannot have untrained and
unqualified bureaucrats - whether they be engineers, doctors or English
literature students is beyond the point - trying to regulate the market. 
Market regulation is a highly skilled job where you do not want to kill
incentives while ensuring that prices are not distorted by monopolistic or
oligopolistic practices (collusion).  It is vital to get specialists who
have both the theoretical knowledge and the practical experience of
running a government organization. In Singapore and Japan, bureaucrats are
valued more if they have higher qualifications. We need such practices to
be defined clearly in the manifesto.

Clearly in India the govt is doing things which it SHOULD NOT and is NOT
doing things which it should. That is the key problem and we have been
going into the specifics while drafting the manifesto. I do not see much
change coming into our document so far, based on this - generally OK -
article. I will link it up in the reading material section.


On Mon, 15 Jun 1998, Charudatt wrote:

> I've come across an excellent article that cogently discusses the issues
> of markets and their regulation at 
> http://epn.org/prospect/31/31kuttfs.html
> I highly recommend this article.
> -Charu