Free market fundamentalists love to deride and denigrate the ‘state’ & the public sector in india. why they are both wrong and dangerous...
This view further adds that India would have grown much faster and eliminated poverty much sooner if the ‘State’ had not been allowed to play such an overwhelming role in shaping the economy. It is almost de rigueur for proponents of this dogma to point out how Japan, South Korea and China have outstripped India by miles by ‘reforming’ their economies much sooner and faster than India.
Business & Economy would like to use this special issue to set the record straight and explode some dangerous myths. Lets start with Japan – the miracle economy till the early 1990s. So stunning was growth in Japan after the Second World War that it is still the second largest economy in the world despite almost two decades of slowdown. But dogmatic opponents of the ‘State’ conveniently forget to mention that Japan created an agency called Ministry of International Trade and Industry (MITI) whose sole role was to promote business houses from Japan to become world beaters. It was the State through MITI that provided the impetus, the import controls, the export subsidies, the massive capital infusion at cheap rates and unwavering support that allowed companies like Sony, Toyota, Mitsubishi, Panasonic et al, to be the global giants they are today. Something similar happened in South Korea after the late 1960s. It was the unflinching and constant State support that allowed companies like LG, Samsung, POSCO and Daewoo to be what they are today. And the success of China is too recent to elaborate how it came about. Quite simply, it was the ‘State’ that ‘planned’ the massive industrialisation and export push that has made China the gl
Business & Economy would like to use this special issue to set the record straight and explode some dangerous myths. Lets start with Japan – the miracle economy till the early 1990s. So stunning was growth in Japan after the Second World War that it is still the second largest economy in the world despite almost two decades of slowdown. But dogmatic opponents of the ‘State’ conveniently forget to mention that Japan created an agency called Ministry of International Trade and Industry (MITI) whose sole role was to promote business houses from Japan to become world beaters. It was the State through MITI that provided the impetus, the import controls, the export subsidies, the massive capital infusion at cheap rates and unwavering support that allowed companies like Sony, Toyota, Mitsubishi, Panasonic et al, to be the global giants they are today. Something similar happened in South Korea after the late 1960s. It was the unflinching and constant State support that allowed companies like LG, Samsung, POSCO and Daewoo to be what they are today. And the success of China is too recent to elaborate how it came about. Quite simply, it was the ‘State’ that ‘planned’ the massive industrialisation and export push that has made China the gl
st add – all three countries had ‘states’ that also invested massive funds in primary education and healthcare – something that the ‘State in India still fails to do.
Equally, important, whatever that ails the public sector in India is not the result of public sector managers and workers; it is the perfidious manner in which politicians and bureaucrats have converted public sector companies into private fiefdoms. Do read on and share the thrills enjoyed by our team of reporters who traveled across the country to revisit Nehru’s modern temples!
Read more......
Equally, important, whatever that ails the public sector in India is not the result of public sector managers and workers; it is the perfidious manner in which politicians and bureaucrats have converted public sector companies into private fiefdoms. Do read on and share the thrills enjoyed by our team of reporters who traveled across the country to revisit Nehru’s modern temples!
Read more......
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
