...Disinvestment of India’s Public Sector Units L M Bhole, Department of Humanities & Social Sciences The role of the State vs. Market has been one of the major issues in development economics and policy. In a mixed economy such as India, historically the public sector had been assigned an important role. However, in the year 1991 the national economic policy underwent a radical transformation. The new policy of liberalization, privatization and globalization de-emphasized the role of the public sector in the nation’s economy. The faculty at IIT-Bombay has been studying various aspects of the New Economic Policy such as financial sector reforms, fiscal implications of reforms, and of globalization. To date several arguments have been proffered by the apologists of market-oriented economic structures: ▪ the government must not enter into those areas where the private sector can perform better ▪ market-driven economies are more efficient than the state-planned economies ▪ the role of the state should be as a regulator and not as the producer ▪ government resources locked in commercial activities should be released for their deployment in social activities. It is also contended that the functioning of many public sector units (PSUs) has been characterized by low productivity, unsatisfactory quality of goods, excessive manpower utilization, inadequate human resource development and low rate of return on capital. For instance, between 1980 and 2002, the average...
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...Disinvestment and Privatisation in India Assessment and Options1 R Nagaraj2,3 Ownership reform in public sector enterprises (PSEs) initiated since 1991 has as yet been quantitatively modest. It is perhaps too early to judge the effects of these initiatives on their financial performance. While the slow pace of the reform can be perceived as an opportunity, there is perhaps merit in carefully reviewing the policy in light of economic theory, and comparative experience. As the bulk of the public investments are in industries with economies of scale and scope (with externalities that in principle invite considerable regulation), this study suggests an alternative institutional arrangement for improving PSEs’ financial performance: mutual stock holding among complementary enterprises tied around a public sector bank to minimise problems of soft budget constraint, dysfunctional legislative and bureaucratic interference, and to encourage close interaction between banks and firms to promote long term economic development. Introduction: Employing about 19 million persons, public sector currently contributes about a quarter of India’s measured domestic output. Administrative departments (including defense) account for about 2/5th of it, the rest comes from a few departmental enterprises (like railways and postal services), and a large number of varied non-departmental enterprises producing a range of goods and services. These include, close to 250 public sector enterprises (PSEs) owned...
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...This committee was encouraged to establish plans to rid South Africa of its Apartheid laws and regime. Thereafter, in 1966, the UN General Assembly declared the 21 March to be “International Day for the Elimination of Racial Discrimination.” This was to be in memory of the Sharpeville Massacre. Many policies were then put into place to begin sanctions against South Africa as a means of crippling the country economically in order to bring about reform. By applying economic pressure the UN felt it would then force the Government of South Africa to bring about change with regards to their policies on Apartheid. Many argue that this is the sole reason that Apartheid fell, but one must not forget the struggle of the ANC and Nelson Mandela who also fought to bring about change and reform in the country. As a result of the sanctions,, South Africa became isolated from everyone...
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...Reading Material - AFM Project A Project is a set of inter related activities leading to a complete tangible or intangible product or service. e.g construction of a building / dam / ship, launching of a new product, conducting national elections, state level professional admission process, setting up a new plant A project in business refers to an organized program of activity carried out to meet a definite goal. In business it may be to launch a new product, set up a new plant, increase existing capacities etc. Projects may be ; New projects, Modernisation projects, Expansion projects, Diversification projects, Other miscellaneous projects. Project Appraisal: Project Appraisal is the process by which a financial institution makes an independent and objective assessment of the various aspects of the investment proposition for arriving at a financing decision. There are four broad aspects of appraisal: 1. Technical feasibility – Analysing the technical aspects of the projects like technical process. Design, size, technology used, availability of resources like labour, raw materials, packing materials etc.,availability of utilities like electricity, water, fuel etc, installed fixed assets and their capacities etc. 2. Financial feasibility – Analysing the financial aspects of the projects w.r.t cost of project, sources of finance, evaluation of revenues and returns on investments and their adequacy. 3. Economic feasibility – Analysing whether the resources commited...
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...implementation strategies have been clearly spelled out in the paper. The authors suggest that in order to make privatization efforts a success, an indigenously designed pragmatic policy needs to be undertaken. They warn that the policy prescriptions of external sources including donor agencies, pressure groups and political lobbyists should be handled with great care and caution. 1. Introduction Privatization has been advocated in the development literatures as the gateway of the growth and development of the countries all around the globe. Despite the phenomenal expansion of privatization programs, the results have been different from one country to another. Some could achieve the desired goals and some failed enormously. The reasons of their failure include structural...
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...organization is needed. But the service organization should not be public rather private. Because we all know about the poor service quality and negative profit of the public service organizations of Bangladesh. So the privatization of service sector is one of our desired initiatives. It is one of the leading aspects with a very bright potential to boost-up the economy of this third-world poor country. Prepared by: Md. Abdul Hai – 07882860 Essence of Privatization Despite a significant degree of public ownership in health, education, communication, utilities and energy sectors in the pre-independence period, Bangladesh inherited basically a private sector dominated economy at the time of independence in 1971. A set of three inter-related reasons are put forward as rationale for privatization in Bangladesh. These are: • Improvement of the governments’ fiscal situation; • Improvement in enterprise efficiency following privatization; and • Mobilization of greater domestic as well as foreign investments for higher growth in the medium-term. Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the public sector (the state or government) to the private sector (businesses...
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...works planning resulted in a virtual transformation of New York City’s landscape. Some of his accomplishments include 35 highways, 12 bridges, numerous parks, Lincoln Center for the performing arts, Shea Stadium, many housing projects, two hydroelectric dams and the 1964 New York World’s Fair. His projects greatly influenced large scale planning in other cities in the United States. He was also contributory in bringing the UN to Manhattans East River waterfront. Moses studied political science at Yale, Oxford and Columbia universities. His long career of public service began in 1913 for the state and especially the city of New York, when he joined the city’s bureau of municipal research. (Britannica Biographies 1). It is with reason to believe that mosses educational background and early careers contributed to his many success and accomplishments in his development to New York City. A good example of this includes because of his work in the bureau of municipal research lead to his appointment as chief of staff of New York state reconstruction by Gov. Alfred E. Smith. Such as the Triborough Bridge, Queens Midtown Tunnel, Bronx Whitestone Bridge, the Henry Hudson Bridge, the Brooklyn battery tunnel, the Throg’s Neck Bridge, the Verrazano Narrows Bridge. It can be seen how Moses is often compared to Barron Haussmann of The Second Empire Paris. However in the "The Power Broker" for starting large projects well beyond funding approved by the New York State legislature with...
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...Germany Ulf Andresen* Regulations Provide Further Guidance on the Application of the Authorized OECD Approach to the Attribution of Profit to Permanent Establishments The author considers the recently issued Regulations on the application of the authorized OECD approach under existing German tax treaties, specifically for the allocation of profit to permanent establishments. 1. Permanent Establishment Profit Attribution Regulations Issued On 13 October 2014, the Upper House (Bundesrat) adopted the “Regulations on the Application of the Arm’ s Length Principle on Permanent Establishments in accordance with section 1(5) of the Foreign Tax Act (Aussensteuergesetz)” (Permanent Establishment (PE) Profit Attribution Regulations) (the Regulations).1 These Regulations were drafted by the Ministry of Finance and were adopted by the Upper House based on the delegated power in section 1(6) of the Foreign Tax Act granted by the parliament (Bundestag). The Regulations have the quality of law and, thus, are binding on taxpayers, the tax administration and the tax courts in Germany. They provide the long-awaited guidance for taxpayers on how they should apply, in practice, the authorized OECD approach under section 1(5) of the Foreign Tax Act, which is effective in Germany for all financial years commencing after 31 December 2012. The rules in the Regulations are effective for financial years starting after 31 December 2014. For taxpayers, this means that they...
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...may not only look at the historical financial performance of a business but will generally consider the forecast financial performance also The objective is to ensure that prospective investors make an informed investment decision Its a fact gathering exercise with a focused analysis of information. The main sources of information for a FDD review include: Historical financial data including statutory accounts, g y , management accounts and reports and income tax returns Current financial data such as year-to-date management accounts Minutes of Directors’ Meetings and Management Meetings Directors FDD is about: Evaluation, Interpretation and Communication detailed FDD – When Needed ? Mostly sought for the following transactions: Disinvestments Strategic investments or a PE investment Acquisition of an undertaking / business Inbound and overseas investments Listing of securities in Indian or overseas market st g o secu t es d a o o e seas a et Types of Due Diligence Due Diligence Dili Nature of Client Nature of Work Se S de Sell-Side (Vendor) Buy-Side Buy Side Financial Tax Legal Commercial Purpose of FDD Identify potential risks for the buyer in its investment decision Evaluate quality of reported earnings and identify value drivers critical to the transaction Corroborate buyer assertions regarding target’s financial position target s Identify issues to be addressed in purchase agreements Assess strengths of financial personnel and systems...
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...success or otherwise of urban regeneration schemes in combating the causes and consequences of urban decline (40) Urban decline is defined as the deterioration of the inner city. It is normally caused by a lack of investment and maintenance as well as social reasons and government policy and these declining areas are characterised by the low economic status, social and environmental decline and problems. Even with this decline, there are ways of regenerating the inner city, such as Urban Development Corporations and City Partnerships. The de-industrialisation of UK inner cities led to unemployment in the area, meaning there was a lack of disposable income and therefore and therefore a lack of expenditure in the local economy. This decreased income and expenditure means that rent prices would be lowered in the area and therefore landlords would not be motivated to carry out repairs and refurbishments, leading to a decline in the standard of living as well. The lack of expenditure meant that mass disinvestment from local businesses occurred as they decided to move to more prosperous areas to further their business ventures. This in turn creates more unemployment and a further lack in expenditure and more disinvestment; and the cycle continues. The local government collect less tax, while in turn having to shell out more in unemployment benefits, leading to further economic decline in the area, as well as a physical decline. This pushes out the more affluent population, causing...
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...International Journal of Advanced System and Social Engineering Research ISSN 2278-6031, Vol 3, Issue 1, 2013, pp18-22 http://www.bipublication.com ADVANTAGES AND DISADVANTAGES OF PRIVATISATION IN INDIA Anant Kousadikar and Trivender Kumar Singh* *Jatan Swaroop PostGraduate College, Kayasthwada,Sikandrabad(U.P.), Distt: Bulandshar [Received-05/12/2012, Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation...
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...International Journal of Advanced System and Social Engineering Research ISSN 2278-6031, Vol 3, Issue 1, 2013, pp18-22 http://www.bipublication.com ADVANTAGES AND DISADVANTAGES OF PRIVATISATION IN INDIA Anant Kousadikar and Trivender Kumar Singh* *Jatan Swaroop PostGraduate College, Kayasthwada,Sikandrabad(U.P.), Distt: Bulandshar [Received-05/12/2012, Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation...
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...Trend Paper Barbara Greenwood, Jamie Leon, Jessi Moore BSHS/305 July 28, 2014 Elaine McCullough Political and Economic Trends in Human Service Delivery Economic and political events relate to current trends in the human service field with the intentions of meeting the growing needs of people everywhere. High-financing requirements provide clients with services in various areas, which are critical to their well-being. Unfortunately, this task is becoming harder by the day to contend with, and the client suffers when quality care is unavailable. According to “Human Services in a Time of Economic Crisis” (2009) “adding to the human services funding deficit, and constituting a second form of disinvestment, are a number of direct cuts made to these programs over the past several years.” The political relationship links governmental policies as well as funding together. “Governmental policies determine who clients are, ways that clients may be serviced; funding influences the resources we have to help the increasing number of those in need.” (Woodside & McClam, 2011, p. 92). Trends will involve a variety of situations that will need the assistance of human services professionals. No matter what the trend is, the time, or the individual who it applies to, the ultimate goal is to meet the needs of the clients. Today economics and political events rule the types of trend(s) regulated into today’s society and how it affects human services...
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...Theories of Poverty and Community Development Jozette M. Broughton Introduction to Sociology Prof. Jeremy Bennett December 09, 2012 Abstract In this paper I will explore how two competing theories of poverty shape anti-poverty strategies. Since most rural community development efforts aim to relieve causes or symptoms of poverty, it makes a difference which theory of poverty is believed to be responsible for the problem being addressed. In this paper three theories of poverty are discussed from research in different news articles. It will be shown that two theories of poverty, not that these are the only two, place its origin from 1) individual deficiencies and 2) cumulative and circumstantial origins. Then, I show how each theory of poverty finds expression in common policy discussion and community development programs aimed to address the causes of poverty. Building a full understanding of each of these competing theories of poverty shows how they shape different community development approaches. While no one theory explains all instances of poverty, this paper aims to show how community development practices that address the complex and issues of poverty more effectively by reducing poverty compared to programs that address a single theory. Theories of Poverty and Community Development Community development has a variety of strategies available to meet the needs of those persons and groups who are less advantaged...
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...CASE STUDY TITLE: MARUTI UDYOG LIMITED – Managing competition successfully [pic] MARUTI UDYOG LIMITED – Managing competition successfully Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile...
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