New Delhi, Mar 17 (KNN) The Government should not get involved in providing actual services and rather should leave it to third party agencies working in a corporatised manner under the supervision of an independent regulator.

This comment was made by the World Bank Country Director  in India, to a news agency recently, on the management of  public services like water supply.

In fact the situation is same almost in every areas of providing public utilities; in Railways, Power,  where the Government is the monopoly supplier and at the same time the regulator and the policy maker.

Even in public transport, there is  predominance of  Government in almost in all states.

While these were normal during the era of socialistic administration, they are clearly anachronism, when the avowed policy of the Government is liberalisation and further liberalisation.

While the economists will talk about inefficiencies of such systems the common man  is more concerned about the poor value for money  and absence of any independent grievance redressal  under such a system.

Not only services, even in  core commodities, the omnipresence of Government is clearly visible. In foodgrains, Iron &Steel, Aluminium and many other commodities Government is the dominant supplier and make the rules of the market themselves. So  the Government changes the rules to make the  consumers  pay higher prices  for Iron and Steel so that the inefficient Government producers  do not become bankrupt.

Besides the consumers such  approaches also affecting the growth  and competitiveness of  MSME sector.

Being largely dependent on Government orders, Indian MSMEs  cannot venture for higher technology  and  cost effective items as they will not be acceptable to Government buyers, who set their own standards and procurement systems  by whims  or as some people allege, by design.

The situation is vividly described by Dinesh Singhal, a leading MSME supplier of  power sub stations  and Chairman  of  subject  committee on public procurement at FISME, the leading federation of MSMEs..

"Today why public works and public goods are of poor quality ?  Because the Government neither promoted quality suppliers nor  weeded out the unscrupulous 'Government Suppliers'" commented  Singhal.

He also wondered why not a single MSME  supplier  dedicated to Government orders could not grow to a reputed brand, while in auto sector  a number of  MSME vendors have grown to become  global suppliers.

The crucial factor behind such a situation is the Government being the policy makers, the regulator and  also the monopoly buyer / supplier, Singhal opined, where do one can complain  and expect impartial judgement.

As the World Bank Head in India recently quipped ' In effect the Judge and the Jury is same'. (KNN/DB)