Showing posts with label socialism. Show all posts
Showing posts with label socialism. Show all posts

Wednesday, August 01, 2007

How Sarkari "enterprises" destroy value

Air India has bought 2 Boeing 777s that can fly direct to New York.
But the inaugural flight has gone empty.
Even as Union Civil Aviation Minister Praful Patel flagged off Air India’s inaugural non-stop flight to New York amid much fanfare early on Wednesday, the flag carrier’s top brass mulled over the near-empty Boeing 777-200LR that pushed back from Mumbai’s Chhatrapati Shivaji International Airport at 12:45 am.
For onboard the “historic” flight were a meagre 80-odd passengers—including a dozen freeloaders [emphasis added] —as against the 238 seats available. Or a paltry 33 per cent load. What’s worse: things don’t appear much better for the first fortnight either.
In an era of free(er) skies, will anyone really fly Air India? I had the misfortune of flying them once and was appalled, really appalled at the planes and the (total lack of) service.

Despite this,
Air India had opened bookings with fares over 30 per cent higher than the industry average on the sector, which were later brought at par, because of slow bookings.
So, not only does the airline offer pathetic services, it also charges more than its competitors! That's rich!!

Inquiring taxpayers (like myself) want to know where the money goes, and why the all-knowing Government of India continues to squander my taxes on funding this -- and other -- white elephants.

Sunday, May 20, 2007

Medical Education in Maharashtra - 1

Creating a robust Medical Education is a strategic imperative for India – healthcare is a critical sector of the economy in any nation. In a growing nation like India – with an absolute deficit of doctors, -- establishing a robust "pipeline" of medical talent is a critical element of development. After all, you cannot create economic surplus if you're sick.

Stewards of state are therefore expected to create an environment where talent is allowed to nurture and bloom.

Sadly, stewards of state in India -- and in Maharashtra in particular -- have done exceedingly well at destroying talent by establishing a deadening centralised license raj.

This is the story of what has happened in Maharashtra -- and what to expect as a result.

To begin with, starting a medical college in India is tough. You have to jump through multiple governmental hoops to get a green signal: from the number of beds you have/need, to the sizes of lecture rooms... even the fees you can charge!

However, the government worries very little about what quality of doctors you produce (in stark contrast, virtually all nations tightly regulate the quality of doctors produced; important, since a drop in educational standards can directly cost human lives).

As a result, many freshly graduated doctors in India are, to put it midly, incompetent. I had colleagues in my class who could not read a chest X-ray. This in a country where the first, second and third diagnosis for chronic cough is tuberculosis, tuberculosis and tuberculosis.

As a result, even after nearly 6 years of schooling, employment opportunities for a Doctor are slim (in stark contrast to graduates from engineering or management colleges).

No one comes to medical schools in India to recruit the next generation of Naresh Trehans or Nitu Mandkes: the cost associated with separating the wheat from the chaff is just not worth it. The best hospitals, in fact, simply do not entertain candidates until they earn credentials overseas – a simpler way (but more effective, at least from the Hospital’s perspective) of ensuring quality of supply.

Despite these flaws, the system was getting by: many doctors were starting out on their own, others were earning overseas qualifications and either returning or emigrating.

Somewhat predictably, the Maharashtra government began facing a crippling shortage of medical officers -- particularly in her rural areas.

Instead of freeing up the supply of doctors to address this shortage, the Government actually strengthened its stranglehold over supply and brough every aspect of medical education under direct governmental control.

All students were forced into mandatory rural service (girls from my class have served their bonds in Gadchiroli – a naxal infested area). Bonds were signed to make sure no student ‘slipped the dragnet’. Since the government could not "afford" to pay her resident doctors (doctors in teaching hospitals working to earn their MD/MS degrees), salaries were reduced. In fact, several resident doctors working to earn their DNB, do so gratis! Imagine a 27 year, unpaid neurosurgery resident!

Education delivery was next. Medicine programs that had run for perhaps longer than a 100 years at Mumbai and Pune University (among others) were dismantled and centralised to a no-name university operating out of a shed in Nasik. Centralised because the state found it easier to control one puppet university, Nasik because that was the health minister’s constituency.

To complete the picture, private medical schools in Maharasthra were also told by the government whom they must admit and what fees to charge!

As respected programs were demolished and replaced with an unknown and unwanted one, examination standards dropped; the new degree was even invalid internationally for several years. Doctors’ employability levels dropped further.

The result has been predictable. Lines to join medical school have been getting thinner. Growth in seats has stalled -- not one medical seat has been added in Mumbai in the past decade. Those already stuck in the system are leaving: fully half my graduating class has either migrated overseas, moved out of the clinical sciences or both.

Over a short span of ten years, vibrancy in medical education in Maharashtra was decimated, replaced by a deadening License Raj. A Raj of unmet demand, insufficient supply and poor quality.

But the divine law of supply and demand -- hated by the dirigiste state -- has caught up with Maharashtra. Over the next 20 years, Maharashtra will face a catastrophic shortage of medical doctors. This shortage will hit where it hurts most: public healthcare.

This catastrophe will not be easy to fix: it takes years to create a medical college of any standing (infrastructure, teachers, a working hospital) and nearly a decade to make a doctor (longer, if you include complex specialities).

By acting cynically to perpetuate their personal control over the sector, Maharashtra’s political leaders have virtually wiped out an entire generation of physicians, exposing her citizens to medical risk of institutional proportions.

They must be tried for criminal malpractice.

And yet, it is possible for Maharashtra to reverse the decay; i shall cover the topic in a separate post.

Monday, May 14, 2007

First you screw them...

... then you give them sops.
Classic maay-baap sarkar behaviour: choke off all sources of income to reduce to penury.
Then save from penury -- but only just -- by starting a life-support drip.
Control the pace of the drip to ensure that income is never infused fast enough for the patient to recover and walk off.

When will the UPA idiots learn?
The solution to Agriculture, as elsewhere, is simple:

1. Establish a water and electricity policy -- including private transmission and distribution to ensure farmers have the "raw materials" to grow and transport food (a lot of food perishes because our cold chains are poor -- because we dont even have 100% electricity). Buttress with a buildout of roads (remember the NDA's golden quadrilateral?)

2. Get out of the way -- dismantle controlled price regimes and allow farmers to produce what the market needs -- and sell directly to consumers.

Wednesday, March 28, 2007

Careful UPA -- your slip is showing

The UPA claimed to be interested in "development with a human face" in 2004.

Development, yes, but whos? This article points to the answer: Not the Farmer's.

With agribusiness hotting up, private players are establishing their own supply chains and offering higher prices to farmers for their produce.

Anyone with the "farmers' interest" in mind would welcome this development.

Not the Central Government.

The Central Government, clearly, is not concerned about the farmer.

Instead of allowing farmers to get higher returns, MMS and Co. will now force farmers to sell produce to the sarkar at lower prices than the market.

But then, the UPA is then doing only what its (time tested) Nehruvian Stalinist ideology says: rob the citizen and keep him poor, 'fix' him on an IV drip of doles and alms and control that drip!
Rob the farmer of a fair price, drive out competition and leave the poor farmer dependent on a drip of FCI-fixed prices.

Thank you Finance Minister for informing us of your intent to "help agriculture" in your '07 budget. Now we know who you're planning to help.