Wednesday, January 14, 2009

Regulatory Regime and Infrastructure Development

In the Indian context a fad word or phrase has all takers, academicians, politicians, bureaucrats, and the layman in the common mass. In recent times regulatory nuisance has become nonsense..., somebody says scrap it, others say have more and more regulatory frameworks in India because only such frameworks are going to free India from regressive bureaucratic control. One of the recent fad phrases has been "regulation and infrastructure development" and people believe religiously that ideal (debatable) regulatory framework creates infrastructure for the economy. Some available literatures need appreciation on this context:
www.uneca.org/adfiii/docs/ri_infrastructure_dev.pdf
www.adb.org/Media/Articles/2006/10895-Indonesia-infrastructure
www.hindu.com/2007/03/19/stories/2007031900421600.htm
www.cuts-international.org/RptRegFrmwork140105.htm

All said and done; is it correct to say that a regulatory framework per se leads to infrastructure creation and development. Furthermore Mohan Pyare says that this is all a World Bank gimmick, they want to free economies from the governmental control so that global capitalist economy could be established. Seems interesting...but I do not think this is applicable to India...high governmental hand in regulatory system...? Mohan Pyare believes that regulatory framework is just an extended form of executive authority in India.. If this is true then why to burden the governmental coffer by creating a regulatory framework? may not be. But how regulator would create infrastructure? Is regulator going to scout investors? may not be. Then how regulatory framework would create infrastructure? Indeed it will…by creating demand or supply...no way this is not the function of a regulator. I am seeking this answer from Mohan Pyare, hope to get it by next week.

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