Wednesday, June 17, 2009

Markets are unsympathetic and unforgiving

It doesn’t mean The State or government is sympathetic and forgiving when you don’t pay your tax. 

This country is full of crooks and bad babus in all kinds of regulatory system which attempts maximum to help people die.  Recently I met a person whose job is a rescuing snakes and snakes bights. He told me no modern medicines are available in India if anyone gets snakes bights that have higher venom. More importantly he shared one of his experiences with Doctors in government Hospital and government officials. He said even for a fever one should not go to government hospitals. Of course it’s true but the poor people don’t have any other option because since independence our bureaucratic ruined all other option to give good healthcare to our people. 

Ramesh Ramanathan has worst experience with a person who had bad experience with government hospitals. I friend of mine told me a similar experience with his father critical operation in the government hospitals. 

Similarly, the ruining is happing in the retail sector in the country just see for example: 

A guy writes

  • "A Parliamentary Standing Committee on Commerce has actually recommended a blanket ban not only on FDI in organised retail, but also on domestic corporate heavyweights entering the sector. Already, several large domestic companies are into organised retail covering food, textiles, electronics, furniture and household items. 
  • ….it would be unfair to throw small retail among wolves, as it were, because markets are unsympathetic and unforgiving.
  • On the other hand, looking at the economic situation in the country (with over 200 million below the poverty line and many hundreds of millions barely managing to make ends meet) there is absolutely no urgency to open up FDI in retail.
  • The country can do without it for some time. But it is important that the process of capacity building among unorganised retail commences soon.
  • Another issue is regulation. A strong regulatory oversight may help bring some discipline.

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