Deregulation Before Privatisation: Fixing Pakistan’s Power Market

Good news!

A famous question regarding privatization of state owned enterprises: What comes first, privatization or market deregularization/liberalization? Most agree both are necessary for more free markets.

"The Government of Pakistan has begun the phased privatisation of three state-owned power distribution companies to minimise sector losses and address recurring debt.

Privatisation can certainly enhance efficiency when firms operate in a competitive and well-functioning market. However, Pakistan’s energy sector continues to be operated in a single-buyer structure, with strict administrative controls over pricing, market access, and electricity transactions.

This raises a critical question about the order of reform: should the power sector move towards privatising distribution companies before creating the conditions necessary for competition? PRIME’s (2024) report “Breaking Monopolies Deregulation Before Privatisation” argues that deregulation should proceed [precede?] privatisation.

Without market liberalisation and required market reforms, privatisation risks replacing public monopolies with private ones, leaving consumers with limited choices and weak competitive pressures. ..."

Deregulation Before Privatisation: Fixing Pakistan’s Power Market

How India Is Defeating SpaceX | India Makes History With Skyroot Aerospace

Very recommendable! How to balance the private and public sector/national security?

(1) How India Is Defeating SpaceX | India Makes History With Skyroot Aerospace | The Blueprint - YouTube

Surprising Capitalist Makeover Is Under Way in Sweden

Recommendable! To quote Ronald Reagan: "Government is not the solution to our problem government is the problem"

"Sweden, long treated as a model of democratic socialism, has spent the past three decades moving toward freer markets. Following a period of economic stagnation and a financial crisis in the early 1990s, the country cut taxes, restrained public spending, opened parts of education and healthcare to private providers, and generally liberalized the economy. ..."

"“For decades, Sweden was shorthand for the brand of high-tax, high-spend government that managed people’s lives from cradle to grave through state-run hospitals, schools and care homes.

No longer. With little fanfare, this Nordic country of 11 million has embraced capitalism. 

Today, nearly half of primary healthcare clinics are privately owned, many by private-equity firms. One in three public high schools is privately run, up from 20% in 2011. School operators are listed on the stock exchange.

Sweden’s experience has lessons—good and bad—for other rich countries ...

The capitalist makeover has allowed Sweden to do what few industrialized countries have managed in recent years: shrink the size of the state. That has enabled the government to sharply lower taxes and, economists say, sparked a surge in entrepreneurship and economic growth.

Its total public social spending bill—which includes healthcare, education and all welfare payments—has fallen to 24% of gross domestic product, similar to the U.S. and well below the over 30% for nations like France and Italy.

Sweden’s economy is expected to grow by around 2% a year through 2030, roughly the same pace as the U.S. and double the growth rates of France and Germany, according to an April forecast by the International Monetary Fund.”"

Doomslayer: Progress Roundup

Surprising Capitalist Makeover Is Under Way in Sweden - Human Progress

The World’s Most Surprising Capitalist Makeover Is Under Way in Sweden "The shake-up of cradle-to-grave care is lowering government spending, spurring innovation and stirring fears about those left behind"

Fixing the roads: How tolls saved Britain from pothole hell in the Industrial Revolution

Food for thought! How about going back to private roads and tolls?

"The ‘turnpike’ toll road system deserves far more credit for improving roads in eighteenth-century England and Wales, a new study argues. Analysis of nearly 100 travellers’ diaries reveals that turnpiking improved comfort and reduced danger on the roads, as well as speeding up wheeled vehicle journeys. ..."

Fixing the roads "How tolls saved Britain from pothole hell in the Industrial Revolution"

India Opens Nuclear Power to Private Firms, Changes Liability Rules with Palki Sharma

Good news! Bravo! The new liability rules for operators and suppliers of nuclear power plants in India are interesting and could be a major improvement.

India to open nuclear power industry to private sector

Good news!

"India's parliament on Thursday passed a bill intended to open up the country's closely controlled nuclear energy sector to private companies over strong protests from opposition party members. ..."

India to open nuclear power industry to private sector - Nikkei Asia "Nuclear energy currently meets just over 3% of electricity needs"

Amtrak CEO forced to resign by Trump administration amid talks of privatization

Yes, the privatization of Amtrak is decades overdue!

Trump admin seeking to sell nearly 450 vacant, underused federal spaces

Good news!

NOAA’s vast public weather data powers the local forecasts on your phone and TV – a private company alone couldn’t match it. Really!

Only a fool would believe that!

With private companies in charge perhaps we would have finally more accurate current local weather forecasts and beyond 48 hours!

NOAA’s vast public weather data powers the local forecasts on your phone and TV – a private company alone couldn’t match it

Will Trump Privatize the US Postal Service?

Good question! Hopefully, President Trump will do it!

"“President-elect Donald Trump has expressed a keen interest in privatizing the US Postal Service [USPS] in recent weeks,” reports the Washington Post. The article discusses Trump’s long-standing complaints about the postal agency and possible reforms in the spirit of his Department of Government Efficiency (DOGE).

The article mentions hurdles to privatization, but ongoing declines in letter volume mean that the status quo is not an option. First-class mail has plunged from 104 billion pieces in 2000 to 46 billion by 2023. On a per-capita basis, 2023’s mail volume was just 37 percent of 2000’s. Congress provides the USPS with a legal monopoly over mail, but mail is a dying industry. ..."

Will Trump Privatize the USPS? | Cato at Liberty Blog

Tokyo Metro Unveils Range for Japan’s Biggest IPO Since 2018 or how to privatize local public commuter traffic transportation

Good news! Privatization is one good option to achieve smaller and more limited government!

Tokyo Metro Unveils Range for Japan’s Biggest IPO Since 2018 - Bloomberg

Credits: Den Nahverkehr privatisieren? Was in Europa kaum noch jemand wagt, ist in Japan ein Erfolgsrezept "Tokyo Metro, Japans grösster U-Bahn-Betreiber, soll an die Börse. Vieles deutet darauf hin, dass das für alle ein Gewinn sein wird."

China to allow wholly foreign-owned hospitals to lure investment

That is an interesting move for a communist party! Piece-meal capitalism?

"China's Ministry of Commerce announced Sunday that wholly foreign-owned hospitals will be allowed in selected major cities, as the government steps up efforts to stop a slide in foreign direct investment.

Under an expanded pilot program to promote market liberalization in the health care sector, the ministry identified target locations including Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou and Shenzhen. Another is Hainan, where the government aims to develop the southern island province into a "high-level" free-trade zone by 2035."

China to allow wholly foreign-owned hospitals to lure investment - Nikkei Asia "Beijing, Shanghai, Nanjing, Hainan among major locations identified for initiative"

Pakistan moves to sell national airline in test case for privatization drive

Good news!

"Pakistan International Airlines has been thrust into the spotlight as a test case for the government's ambitious plan to sell off state-owned enterprises as Pakistan seeks a multibillion-dollar package from the IMF to bail out the economy.

 

The national airline, which has lost over $3.6 billion in the past 20 years, is one of more than 80 state-owned companies on the auction block -- ranging from power plants and utilities to a women-focused bank and a hotel in New York."

Is Pakistan's national airline ready to go private?