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Thiruvananthapuram : UN Assistant Secretary General for Economic Development Jomo Kwame Sundaram today said mass privatisation destroys firms, creating a vicious circle resulting in ''patrimonial capitalism.''
Delivering the inaugural address at the International conference on 'Resurgence of State Owned Enterprises : The Role of Ownership Policy and Governance Systems,' organised by the Department of Industries and Commerce, Kerala, he said ''many developing countries were forced to privatise by World Bank loan conditions.'' ''Privatisation burdens public when user charges are raised for privatised services and subsidies. Private firms are only interested in profitable activities. ''But government firms are left with unprofitable activities.'' ''Privatisation will worsen overall public sector performance,'' he claimed.
''Privatisation enriches a few sections of politically connected groups while public interest was increasingly sacrificed for private profits,'' he pointed out.
Arguements for privatisation were to promote competition, increase productivity, improve efficiency, stimulate private enterpreneurship, investment and reduce public sector monopoloy, he said.
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Delivering the inaugural address at the International conference on 'Resurgence of State Owned Enterprises : The Role of Ownership Policy and Governance Systems,' organised by the Department of Industries and Commerce, Kerala, he said ''many developing countries were forced to privatise by World Bank loan conditions.'' ''Privatisation burdens public when user charges are raised for privatised services and subsidies. Private firms are only interested in profitable activities. ''But government firms are left with unprofitable activities.'' ''Privatisation will worsen overall public sector performance,'' he claimed.
''Privatisation enriches a few sections of politically connected groups while public interest was increasingly sacrificed for private profits,'' he pointed out.
Arguements for privatisation were to promote competition, increase productivity, improve efficiency, stimulate private enterpreneurship, investment and reduce public sector monopoloy, he said.
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