Prof. Madhukar Shukla of XLRI shows how our governments shield companies from the free play of free markets:
In order to grow (SEZs, Express Highways, Mega-dams, Infrastructure, new ventures, etc.), the ‘free-market’ enterprises need to own land/ private property in convenient locations (the “convenient location” is also the reason why most projects are located on fertile land, while the wasteland remains untouched). However, if the companies have to pay the ‘free-market’ price for others’ ‘private property’/land, their projects will become financially unviable (more so, since market-forces shoot up the land prices, once a project gets announced).
And therein lies the paradox:
In order for the free-market enterprises to grow in the liberalised economy, they need to be shielded from the forces of free market!!!
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