@KYli bro privatization especially of public utilities stiffen innovation, become less competitive and destroy the quality of life. During 1990's it had been the mantra of IMF and WB, selling these public utilities for a song to private company with a promise of efficient services and lowered rates, well look what happen the opposite occurred instead of good service frequent disruption become a norm and was being used as blackmail for rates increase. those company had become rent seekers pocketing profits instead of investing and the necessary maintenance of their equipment and assets. That is the reason why the Chinese economy especially its industry is so competitive and strong vis-a-vis other country economy. Its industrial input is cheap. State control of strategic public assets that were providing efficient and affordable services is another form of state subsidies, its better and had a broader tangible result instead of providing specific financial outlay.
And for the West privatization of public sector utilities is a way of controlling resources, most of those who participate are mostly western financial institution, doubling their dollar for every investment they make especially in the developing world. the Debt Trap accusation of China is a Misnomer those words perfectly describe their action and their policy, it should be apply to them.
Privatization should be mandatory for mostly everything in the economy, except for those items that require state support or dependent on state support, for one reason or another.
Otherwise, everything else should be privatized.
Now the list of industries that should have state support, is kind of long.
- mining
- eduction
- petroluem
- telecommunications
- utilites
- transportation rail airlines
- infrastructure
- health care
- banking
- defense armnaments
Man, I already got to 10 and I am a rightist, lol.
In most countries in the world, these industries on the list, are all associated with the state, whether the state owns the land with the mine or giving out the rights, to extract resources or the radio waves licenses, etc.
Of that list, I think what is truly unique for China is the banking. The four big banks are state owned and among the biggest banks in the world. They were run well I guess.
There are grey areas, whether there should be a state role.
Steel production is from the SOE is kind of controversial. There could be overproduction, but that steel is needed in the large infrastructure projects, and the government needs that supply.
That's China I feel. Does not matter if one supports privatization or not, once we get to China, it gets complicated quickly.
Who knows!
