Privatising Public Enterprises
Evaluation Essential

By Khilendra Basnyat

THE concept of public enterprises (PEs) emerged many years ago when it was realised that PEs were essential to meet the increasing needs of the people. Since the private sector had not developed at that time, government management and ownership of enterprises was indispensable.

In fact, PEs have their special importance In delivering goods and services to the people of a country. Such enterprises have been playing a significant role in developing countries where the per capita income is very low.

In the past few decades, in our country, the level of private sector’s participation to produce goods and to provide services was negligible. What is more, the inability of the private sector to meet the goal of industrial growth adequately led to the emergence of PEs in our country.

In Nepal, most of the PEs were established in the 1960s and early seventies.

Between 1956 and 1985 the number of PEs increased from just one before 1956 to fifty-five in 1985. Of these, twenty-eight were manufacturing businesses set up between 1964 and 1985. One of the oldest public sector industrial enterprises is Raghupati Jute Mill Limited which was established in 1946.

In recent times, our policy-makers have realised that the PEs, which were meant to help the people of our country, are becoming an economic burden due to political interferences. Such an unfavourable trend persists in several state-owned PEs even now although they have not been able to render as much services to the people as expected.

Over the years, adequate investments have been made in PEs. However, it is disappointing to note that most of them are languishing due to lack of efficient management, overstaffing and the lack of appropriate plan in order to make their services competitive. To make matters worse, these PEs have been turned into recruiting centres for the workers of different political parties that came to power at different times.

Frequent changes in leadership of these enterprises contributed to add confusion, thereby adversely affecting their output. With their earnings decreasing every year, the government is facing a dilemma whether to continue their operation or to close them down as soon as possible.

In reality, PEs, if their management is efficient as well as effective, can play a vital role for the overall development of our country. However, unfortunately, they have not been able to play such a role. Consequently, some PEs have already collapsed and most of the remaining ones are not in a good shape.

The PEs, established a few decades ago to work for the welfare of the people and make the country self-reliant in certain sectors, have not been able to live up to the expectation. Actually, efficient and effective management of PEs is the need of time, but the situation is quite disappointing.

The conditions of the government owned enterprises are worsening day by day because of political interference, weak management and rampant corruption. In order to correct these shortcomings, it is essential to appoint people in the management who are qualified as well as experienced. By doing so, the existing PEs can not only serve the people at large in the manner they should but also become profitable ventures for their sustainability.

One of the hallmarks of this tend was the initiation of the privatisation of state owned enterprises although this change in the outlook of economic policy has much to say against the liberal economic policy.

After the restoration of the multi-party democracy in Nepal in 1990, privatisation has been given importance as a part of economic liberalisation.

In fact, privatisation is inevitable in order to expedite economic growth in our country. Actually, one cannot always expect government’s involvement in running factories, business houses and financial institutions. There are several important areas such as education and health where the government should place high priority for the overall development of the nation.

No doubt, the role of public enterprises as an engine of development has gained credibility in many countries. However, recognition of this will take time in our country.

In order to speed up privatisation in our country, the government set up a privatisation policy unit under the Ministry of Finance and formulated privatisation policy a few years ago. Likewise, the privatisation act was enforced in 2050 B.S. to reinvigorate the privatisation process. Consequently, sixteen PEs have so far been privatised.

Although the present Ninth Plan has a target of privatising thirty PEs, the process is very slow. This fiscal year’s budget has provided the opportunity to privatise those PEs that do not need government’s involvement and that may attract private sector’s investment.

Despite the fact that the government has a policy of privatising the state owned enterprises, it has been establishing various kinds of funds such as poverty alleviation fund town development fund and now an electricity development fund. Actually, such government funds are not needed if the existing finance companies of our country are given the chance to finance various development activities in the entire Kingdom.

Regarding the privatisation of PEs, there are some contradictions in the government’s plans and programmes. In order to amend them, such contradictions should be avoided at the earliest convenience.

Although in other countries PEs have been contributing to their economies, they have not been able to do so in our country. It is because most of our PEs have run into the quagmire of debt.

No doubt, the privatisation of our PEs will help reduce the economic burden of the government to some extent. However, it is essential to evaluate the performance of these enterprises before they are privatised. Otherwise the privatisation of PEs will affect our economy in the long run.

Shivaratri: An Auspicious Day For Hindus

SHIVARATRI the night of Lord Shiva, is one of the most popular festivals of Hindu community which falls in the lunar month of Falgun. This is the day on which thousands of Hindus from India throng Pashupatinath beside Bagmati river. Before walking up to the temple, pilgrims first walk down to the river for a holy bath, no matter how cold it is and then proceed towards the temple for offering and praying to Lord Shiva.

There are many mythological stories that explain the importance of this festival.

One dark evening, a hunter called Chanda could not find any animal. He was very tired and planned to spend the night on a tree. He had to keep himself awake all night on the tree for the fear of falling from that tree. In the course of time he got so restless that he could not help tearing out leaves from the twig and let them fall down. All the leaves he tore out by chance- fell straight on a lingam which was installed exactly under the same tree. He did not notice it at all. In addition to this, that particular night, happened to be Shivaratri day and that tree to be the most liked tree of Lord Shiva. Soon after day break, he got down and hurried back home where his wife was waiting for him all night, without any sleep. Thus their keeping awake all night and fasting, unknowingly of course, in the sacred night of Lord Shiva brought them home the blessing of god and they became happy forever.

On this particular night, all are advised to stay wide awake because those who keep themselves awake during the night gain happiness and grace of god with the washing away of all the sinful activities. There is one popular saying that even, the intelligent dogs would not sleep on the auspicious night. Some also say that those who spent the night in praying to lord Shiva can control their mind and gain spiritual power.

According to the Puranas, it is on this sacred night that lord Shiva assumed the form lingum(phallic symbol) to save the universe from a big threat of destruction. The story goes like this. When he swallowed the Halahala poison that emanated from the intensive churning of the mythical milky ocean, the heat of this poison proved so unbearable that he could not wait for a nice and cool Himalayan shower. It is said that it was the time the Ganges rushed to him to pour all the waters she had and continued to do so forever. This story also explains the significance of the ritualistic offering of the holy water through jalahari-a kind of copper cup that hangs right above the Shiva Lingam and the water drips down from this cup almost continuously. This was of course a big relief for him, yet Lord Shiva was expecting some thing even more cooler. It is said that Shiva became happy only when the whole of the moon was tucked in the matted lock of his heat-striken head. Then Shiva overwhlemed with joy danced a Tandawa Nritya-wild dance of ecstacy. As mentioned in the Puranas, it was on this day, Shiva danced this dance. Something highly symbolical about this story is Lord Shiva’s assuming the form of matter(Linga), whereas he was so strongly believed to be the god of formlessness(cosmic power).

We always see a large bull near the entrance of the Pashupatinath. Shiva is very fond of the Nandi bull. Nandi is considered to be the symbol of the entire bovine race for whom Lord Shiva always had sympathy and love. Hence Shiva’s another popular name is Pashupatinath meaning the lord of all animals.

The main message of Shivaratri for all Hindus is that one should gradually learn to control the mind and finally stay away from it because the mind is the root cause of the entire woes and agonies. The restless nature of our mind is nothing but an illusion that has nothing special of spiritual value to offer to us. So it deserves our good care. A great saint rightly says: " On Shiva Ratri day our mind should not be allowed to run on any thing but into Shiva Lingam which is the perfect point to realise oneself with god."