Remedial Strategy

The future of a company or a corporation depends upon its profitability. If it has to depend on state subsidisation, its future is bleak. Firstly, the unit should yield a surplus and profit.

Secondly, the unit should build such a surplus from one year to another. A viable public sector unit should generate a wholesale net annual or periodical surplus to be ploughed partly back towards expansion, modernisation, and development.

The public sector has come to such a sorry pass due to the spread of the unfortunate civil service culture. In such a culture, routine, red tape, and financial indiscipline rule at the cost of professionalism and profitability. In the opinion of experts:

(i) There should be freedom from red tapism, and financial and administrative recklessness.

(ii) Such freedom and decision-making levels can be useful and pragmatic only where it is matched by appropriate accountability in terms of productivity and pro fitability and does not proliferate a civil service culture.

(iii) Bureaucratic inroads into professionalism should be curbed and the reins of public sector should be entrusted to the hands of technologists, economists, and specialists. These experts can improve the viability and profitability of the unit.

(iv) The principle of autonomy with accountability is to be followed strictly.