East Asia, benchmark for reforms

The Survey has called for a quantum change in the way public services are priced. Targeting subsidies at the very poor is, of course, a must. But what is of interest is the suggestion that the rest pay at least the operational cost of public services. This means that sweeping reforms are likely in thepricing of services like health, higher education, sanitation and water supply.

The Survey admits, for the first time, that revenue streams of most infrastructural projects are incapable of supporting exchange risk. Therefore, private financing of such projects would require a major domestic focus. Candid admission indeed. What is more, NBFCs are back in favour as is evident from the observation that "since timely availability of credit is as important as cost, financial intermediation by NBFCs is of importance". If banks and institutions have failed to rise to the occasion, equipment/leasing/hire purchase and loan/investment companies can bridge the gap.