Nationalization vs Privatization..

In most cases, Nationalization of a complex corporation is always a bad idea because politicians and their 'lobbyist friends' get their hands on the controls.
Politicians are not business managers and should never be in charge of a corporation.
Privatization is also be a bad idea..
National Assets are (were) our childrens heritage, we had no right to sell them for short term gain. The argument that the private sector makes a better manager than politicians is true but that doesn't justify selling those assets.
There is a better model than privatization..
Any corporation, including a nationalized one, should be managed by the highest qualified person you can afford. The Air Force is a Nationalized corporation. We don't need to privatize it to ensure it is well managed! It is already managed by world-class experts.

We will declare an end to the 'Fire Sale' or Privatization of National Assets and will attempt to redeem some vital national assets that have previously been sold off.

We will re-write the concept of "Nationalization".

We are proposing a P.O.E.M model for any Nationalization.
POEM stands for Public Owned, Expert Managed. It is a similar model to that of the Army, NASA or Police - These entities are Public Owned and Managed by world-class experts. No individual Senator can interfere in Navy decisions or appoint his Nephews to senior positions.
Most areas of enterprise are best left to the private entrepreneur. That's what they are good at. Even though the entrepreneur will try to exploit the public to the full extent of the law, the public is still better off with 'private enterprise' than under a Socialist regime that wants to Nationalize everything.

There are several exceptions where the private entrepreneur is not the best alternative..
•  When an enterprise has become too big to fail - Where its failure would seriously damage the nation. (a Systemic Risk) These enterprises must not be left in private hands. They should be publicly owned but managed by world class experts (POEMd)
•  Any enterprise that is vital to the nation (Eg. Fire services, Ports and major Railroads) must never be sold into private hands.
•  When the economic foundation for a critical enterprise has deteriorated. Eg. The Insurance industry is facing enormous costs of future natural disasters. We could see a Katrina every two years. The Insurance industry might never be profitable again and so private investors will abandon the industry - leaving the POEM model as the only alternative.
•  In a time of high unemployment and massive debt, the people simply cannot afford the prices charged by some monopoly protected companies. If those high prices cannot be brought under control quickly, a POEM'd company will be set up to compete directly with those companies and so force the prices down. (Monopolies and Patents are privileges granted by the State (the people) and can be legally revoked by the people if ever that privilege ceases to benefit the people.)

As a POEM'd example, our Peoples Bank will be managed by a tenured tribunal of international banking experts who are paid a salary befitting their world-class skills. Government approval or oversight would only be needed for major investment decisions or if they needed temporary public funding.
The aim is to place most of our National Assets and vital utilities under POEM corporations.
This will include Energy Utilities, a Peoples Bank, a national chain of Medical clinics, Ports, a Grocery supermarket chain, a Medical Insurance and General Insurance company. (see proposed list below)
In fact, any entity that is "too big to fail" is a potential "Systemic Risk" and should NOT be in private hands - it should be POEM'd.

There is a wealth of expertise & wisdom in our retired business leaders.. Many have been top of their field and now have spare time. Unlike our current leaders, they have seen all the pitfalls, they have seen a thousand "bright ideas" come and go! They know what works and what doesn't. We will be calling on this massive resource to manage these POEM corporations and to assist as advisers in all areas of government.

Most entities run under the POEM model will be open to private investment. Nothing succeeds quickly without leverage, without private investment. The pricing of Poem services will be regulated to provide a healthy government guaranteed return to investors.
Where the Poem entity competes for market share, the pricing will be regulated to maintain a reasonable share. In the Services sector, POEM pricing will always be lower because the service will be more basic. E.g. Patients attending a National Medical Center will usually have to attend twice for the three step process - 1. Information gathering, 2. Overnight analysis by top experts assisted by the new Central Medical Database and its 'Google Like' diagnostic search engine. 3. The consultation with a GP.

Proposed list of POEM candidates..
•  Utilities, Energy providers, Ports, Telco's, Railways, Health/Medical Insurance.
Many of the following services will be housed in government complexes called "VS Centers" (see below) These centers will be in every suburb.
•  A Peoples Bank, (Mortgage, Investment, Business & Personal)
•  A National 'Half Price' Medical & Dental Services chain, These clinics will be in every suburb and will absorb many existing medical centers. Many of the nations current medical GPs will become salaried trainers in these centers, each with two graduate understudies. Within a few years, we intend to double the number of GPs. The extreme competition of these centers will see the price of the average visit to any GP cut by 50%..
•  A Drug Research Laboratory.. This corporation would coordinate the many University Research Units and provide funding, patent and marketing services for those centers.
•  A Grocery supermarket chain with Internet ordering options and home delivery.
•  An Insurance company and Legal Services Chain.
•  A National Real Estate Agency within these "VS Centers" [read More]
•  A National non-profit corporation responsible for Housing Estate development. (Private Developers are too expensive and cannot provide housing land fast enough.)


Last Updated (Monday, 03 January 2011 21:37)