Saturday, June 5, 2010

Converting all that is Private into Public

It seems not pro actively but reactively and by chance the governments of different countries are finding the social, political, economic solutions in socialism and Public sector.

Without changing much we can change  lot of private assets or privately run economies into public assets and public economy if required. 

E.g. Using  same  cars and vehicles , public sector  for transportation can be  expanded. This is already happening where in Mumbai most of the cabs are adopting models of Maruti Suzuki, Santro etc. So the auto sales will not go down. There will not be any need to give very cheap auto loans to people who are not rich and still want to spread pollution by taking auto loan.

There can be lot of Private Sector Companies like Meru, in providing public transports. 
The Most Important yardsticks could be
1> more mobility to maximum people at the minimum possible rate 
 2> contribution to the nation, productivity etc per liter of Fuel used.

Similarly there can be public mobile, public broad band and internet, public 3G in all our villages.

Similarly there can be low cost housing , land re-distribution, flat re-distribution by new mechanisms by Government. This is key to change monopolies. This is key to bridge the gap between poor and rich. This is already happening where some builders find market for low cost housing. but where are appropriate government policies and programs.
Average land Area used for residential , commercial , industrial , agricultural purposes should rise in lower strata of public, in those who are below property line.

Even  all that is private security personnels - need to be converted into public security personnel. The number of citizens  served, protected per security person should increase. This will also make the life of security man easy, real, satisfying, proud. The way our police , CRPF , defense are deprived of required extra staff, resources, training shows the mental bankruptcy of politicians who are - "private sector -fundamentalists"and they are "Market Fundamentalists"

There is need to  expand and empower public sector  by using all government  lands, offices,  properties with post offices, stations, municipalities, central and state governments. They can be leased out to private sector also. Public sectors like banks and hospitals are doing great jobs and serving the nation but same are deprived of needed extra number of staff, training, technology etc.

the bottom line is to create fair competition - this will take care of inflation and will serve the common man.

If competition brings the best out of people, no competition- a large
 gap between rich and poor - brings out the worst in the world.

The fruits are  monopolies, corruption, crime,  status quo  and overall ruining  of societies and nations. 

Some of the thumb rules for genuine and ambitious businessman
* Public ( serving large number of people) sells better and profitable than Private ( Premium group)
* Rural sells better and profitable than Rural
* Regional (language , literature , product) sells better and profitable than Global. 
 Hindi  sells better and profitable than English. this is not anti-global; just our rich  have prematurely over globalised so we need to balance.
* Competition and competence are better than monopolies and marketing.
* In short follow the lessons of two movies - "3 idiots" and "Rocket singh" -  "First being competent than doing than having " and "Truly Serving the customer will automatically expand your business with great numbers"

Thursday, June 3, 2010

Should Insurance policies attract tax exemption Under Section 80 C etc ?

Many Ignorant Investors (Rich or middle class)  invest in insurance policies - ULIP etc. -
at the end of Financial Year just to get tax exemptions.

Even educated and highly posted people buy insurance policies without getting properly informed.
For some it is status symbol, for some believe it is security for family.
Most of them are misguided by Insurance  companies and agents ;
by keeping the products not simple and mysterious

On the other hand insurance companies are "considered to be"
vehicle of government to mobilize the part of contributions to infrastructure
projects and hence national growth !!

Should Tax benefits be removed from insurance policies ;
And Government  should force the insurance companies, actuaries to come out with real
good , useful plans for common men ?

  Bankim Shah
Be Yourself and Be with Yourself. Be with Nature - animals and plants.