This refers to TCA Srinivasa-Raghavan’s brilliant analysis “The economics of bottomless pits” (Marginal Utility, December 3). The concept of ‘mixed economy’ was a joke during the Nehru days. I still remember E X Joseph who worked in Bombay AG’s Office during those days (1963), comparing mixed economy to adulteration of chicken meat with meat from dead horses during war days in Britain. The proportion was 1:1, one horse for one chicken! He said in mixed economy capitalism and socialism was having that kind of ‘mixing’. The role of public sector in India continues to be viewed with derisive criticism.
The public sector in India is being criticised for no fault of the sector. The ownership of PSUs including banks is with the government which is owned and operated by back-seat driving by the rich and the powerful in the private sector. The private sector leadership, by manipulating government policy, ensures that the management of PSUs remains inferior to that of private sector organisations. The fall of Unit Trust of India and the present stress faced by PSBs with a banking business share of over 70 per cent are examples. Organisations like ISRO, Railways and LIC have survived such manipulations because of less HR interference from GOI.
M G Warrier, Thiruvananthapuram
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