Public Sector Incompetence and Private Sector Vitality

“The confusion and disorganization of the city’s response to an invasion by as few as ten terrorists was a sharp reminder that India’s public sector has little of the entrepreneurial vitality of the newly liberated private sector” – Jonathan Foreman, deputy editor of standpoint from his article “India’s time of reckoning” [Sorry unfortunately I could not find a free copy of the article online]

 

My parent’s generation and their elders used to view the Indian Government as a place where very smart intellectuals and high achievers would go to become powerful and successful.  The Indian Administrative Services attracted the most talented people in the country, as determined by extremely intensive exams.  I don’t know numbers but I’m sure that just like the IIT/IIM system you get a less then 1% ratio of people who take the exams to people who get a spot in the IAS. 

 

Since the “Independence” generation there has been a definite change in the perception of the Public Sector.  In fact, my generation would much rather choose a career in the Private Sector not only due to money but also because the perception of impact that you can make on the sections of the Public that could use help.  In fact, most of my friends who want to do Public Sector work in India would do it through an NGO instead of direct Government service work. 

 

My generation perceives the government as a barrier to growth, as a hindrance to progress.  It is slow, it is annoying and it is ugly.  Politicians are perceived to be sleazy.  Remember, though, that there is a difference between a politician and a bureaucrat – I think that there the perception of politicians spills over to the bureaucratic side of government.  Regardless, bureaucrats are not known for their efficiency, flexibility or forward thought.  This perception is unfortunate for obvious reasons.  In India it is tough to find smart young bureaucrats or politicians – it is just not an appealing enough sector to attract young and dynamic personalities. 

 

The idea of hierarchy and age-based promotion has been vanishing from the private sector.  The focus on merit based earnings and achievement has really helped drive the “entrepreneurial vitality” that Jonathan Foreman mentions above.  What the Indian Government needs to do is revive this spirit and renew the ranks of the bureaucracy with young, smart and motivated individuals.  How?  I have no idea but certainly it can’t be a monetary based motivation – the private sector, for the time being, will pay significant amounts more for talent. 

 

But wait – The Economist says that maybe its because “many young people prefer pleasure-seeking to politics” – well, it does make a good read . . . .

 

On a personal note – I am afraid of dealing with government officials in India because I do not understand how to deal with the bureaucracy in an efficient manner.  As I go through the process of starting a new company I will likely have to hire “agents” and use friends to navigate my way through certain regulatory hurdles, etc.