RE: Efficiency of the markets

["Asher, Mukul Govindji" <ecsasher@nus.edu.sg>]

The word LIMITED has no anaytical content. In the Indian case, most would
concurr that the government got involved in(or did not get quickly out of)
certain areas such as hotels, bakeries, etc and those that had some
rationale eg long-distance bus services, mass transport, etc it has not
managed well and has not permitted competetion. At the same time it has not
done an adequate job of basic functions of any state, law and order,
primary
education, basic health care, public sanitation etc.

The main difficulty in laying down any one rule about boundaries between
market and the state is that these boundaries have historically shifted
over
time and will shift again. Moreover, India's very dualistc economy where a
significant but still a minority of the population desires different things
from the state than most at the subsistence level of income who can not
take
much risks.

So even as we strive to increase the role of decentralised decision making
and introduce competition, let us not denigrate the role of the state and
deprive it of good competent professionals to carry out increasing the
complex tasks of governance.

India did err in not using the markets more in the past, but let there be
no
erring in the opposite direction, the current fashion notwithstanding.

Mukul 

> ----------
> From: 	Manoj Padki[SMTP:mpadki@tiac.net]
> Reply To: 	debate@indiapolicy.org
> Sent: 	Tuesday, November 17, 1998 12:31 PM
> To: 	debate@indiapolicy.org
> Subject: 	Re: Efficiency of the markets
> 
> Mukul,
> 
> I agree with you if you recognize that in addition to strong & competent,
> we
> need a LIMITED government, i.e., once rules are drawn up, the economy is
> left essentially alone as long as they are followed.
> 
> >Privatization works best when there is strong and competent government
> and
> >regulary structures. So pre-condition for privatization is institutional
> >and
> >capacity building plus greater resources devoted to the government!!
> >
> >Mukul Asher
> 
> 
> - manoj

> 


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