Nor does the budget tackle the thorny issue of privatization, as you claim. The fact is that the BJP, now a caretaker government until fresh elections are held in the autumn, was simply unable to pursue tough reforms. Policymaking consistently was held hostage by the interests of coalition partners. Each time the government tried to cut subsidies, a member of its coalition threatened to topple the government. India will continue to suffer policy gridlock until voters elect a stable, majority government in New Delhi.
Many corporations run by bumiputra entrepreneurs fail precisely because they are state-sponsored.
Similar companies in China and elsewhere have suffered the same fate. In the 1980s, one particular corporate failure raised similar ugly racial innuendoes as the principals were Chinese. The failure of Malaysia's state-linked companies is no more a reflection of bumiputra aptitude for and competence in commerce than that earlier problem was a reflection of Chinese business ethics. Review Publishing Company Limited, Hong Kong. All rights reserved.