Essay · Reading time: 2 minutes

Privatization : Solution or Short-Sightedness

Privatization : Solution or Short-Sightedness
I was once reading an article on nationalization of Banks and a very interesting thing I observed in that article. The article said that when Mrs. Indira Gandhi the then Prime Minister of India decided to nationalize the Banks, the decision was opposed by rich and elite class and people who were with capitalistic mindset whereas the decision was welcomed by the masses. This was because Nationalization of Banks would bring the financial institutions closer to common people and their basic financials needs would be addressed.
The purpose of nationalization of banks was to cater the needs of have-nots. Nationalized banks understood their role and since then they have provided services to people in the lower strata of society be it through agriculture loans to farmers or government sponsored credit facilities.
Now the government has decided to give banks in the hands of private players. This will hamper the interest of lower section of societies. Private banks will have separate treatment to its customers based on there deposits and net worth. People with no deposits will be treated as aliens and will be ignored and neglected.
It is not only with Banks, Government’s decision to go for strategic sale in other PSU’s is also not in the interest of common people for which government pretends to do everything for. Post Privatization, institutions will definitely provide better service than the present ones and they will charge for it similarly as well. So, it will be about affording. Those who will be able to afford will have better services and everything and a large section of our society which finds difficult even to make ends meet will be left to handle their affairs their own ways.
If Privatization would have been the way out for all financial Problems One would never need a financial expert or an economic master as everybody would know if the organization is not performing then Privatize it and it will start performing. It takes a lot of effort to make an organization. The way the decision to sell these organizations are being taken by government shows their short sightedness.

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