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Re: privatisation of public sectors

Administrative Note:

Week's Agenda: Economy

On 12oct98 at 02.46, Puneet wrote:

>We have to propose how this will work in monopolistic areas such as railways, 
utilities, city corporation contracts...

IMO we have to distinguish between areas where we can set up competition (e.g. 
utilities and city corporation contracts) and areas where a monopoly is in the 
nature of the enterprise (e.g. railways).  

Has anyone examined the British experiment with privatising railways?  It is a 
bit of a disaster from teh viewpoint of the customer, and an embarrassment for 
the then-government which was accused of selling off the railways cheap and thus
making a few folk rich.  Of course if the then-government had over-priced, the 
sale would not have been possible at all....

My view is that the railways cannot be privatised successfully (I am aware of a 
few LOCAL examples in the world where city-railways have been run successfully 
in commercial mode but most successful national rail systems are subsidised).  

However, there is no reason why the railways cannot have more market-oriented 
principles applied, for example in incentivising the Board, managers, and even 

Professor Prabhu Guptara
Director, Organisational and Executive Development
Wolfsberg Executive Development Centre
(a subsidiary of UBS AG)
CH-8272 Ermatingen
Tel: + 41.71.663.5605
Fax: +41.71.663.5590
e-mail: prabhu.guptara@ubs.com

______________________________ Reply Separator _________________________________
Subject: privatisation of public sectors
Author:  Puneet.Singh (Puneet.Singh@cinenet.net) at nyuxuu
Date:    12.10.98 02:46

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