13th May 2011 is going to be an important date in the history of global Marxism for it marked the burial of the longest surviving democratically elected communist government in the world.The failure of socialist system and its susceptibility to human greed is much more visible today than it was a century ago.When Karl Marx envisaged to create a class less society by imposing a state owned discipline on masses and industry,he forgot the most basic premise that human soul is corruptible and absolute power corrupts absolutely.With the relative success of United States and other Free market economies of the world (despite small hiccups like those in 2008)..perhaps we can move on with the bold question...do we really require existence of state in modern free markets? Hasn't the concept of nation and government outlived its utility?The recent 2G,commonwealth and other scams unearthed at national and state level clearly point out to the failure of bureaucratic machinery to implement social projects.On the other hand free markets have proved their success even in social projects by implementing sustainable social business solutions.So be it the profitable micro financing schemes in Bangladesh or the impending infrastructure growth funded by private sector in India..or the growth of telecom sector in a country where getting even a fixed line connection meant requirng connection with top netas ..the difference is for everybody to see.
Therefore it seems that the best way for the growth of society in modern times is not by implementing more social welfare projects or by pouring more money and implementing new taxes for bringing equality but by continued liberalization of all sectors-industrial or social.The role of government should be limited to that of a regulator and a facilitator of growth by bringing together new ideas and people.The free markets so created with the aid of an effective regulator would ensure continued social and economic growth of the country.
Today,the government of India is a huge mammoth present in almost every thinkable social and industrial sector.If real growth is required ,what we require is strategic exit of government from a large no.of sectors.The only areas today perhaps which cannot be entirely be privatized are the defence and judicial services.The government should continue to exit its operational activities from other area and structure itself as a regulator.
To begin with ,the government can completely exit from health and educational sectors.The schools can be auctioned off and institutes of higher learning be corparatized.Instead of subsiding these schools ,the government should distribute educational coupons to parents who can then redeem them for a fixed value at any school.This would ensure generation of a wider market base for private schools to be profitable .The government can instead act as a regulator ,encouraging private investments and making new ideas fathomable in educational world.It can act as an arbitrator and ombudsman in case of conflicts.
Similarly the government can exit from railways ,as has been done successfully in many western nations.Also many civil services can be exited like revenue and tax collection,police services and traffic regulation.In 2005 US government created history when it outsourced its internal revenue services to private parties on profit sharing basis.The result was increase in overall tax collection and lower default
The government should focus on creating a more responsible and faster judicial system,for fear of punishment is necessary for the growth of free markets and prevention of exploitation.In fact in truer sense of word ,the most important reason for existence of any state is the prevention of exploitation of its citizens.It would be good if GoI exits its non core activities to instead focus on the basic reason for its existence.No nation state has existed for prepetuality in history and as things seem to be India as a state is coming nearer to brink of faliure everyday...and the only thing that can prevent this failure would be a HeadLess ,Leaderless India that derives its leadership not from a single person or party but from each of its masses who contribute in their own way for growth of both the country and themselves
