Privatization no panacea for economic ills

It has become second nature for many an economist, expert and commentator in China to see privatization as a panacea for all the ills plaguing many a business and service.

The recent power shortages in some areas were blamed on the "monopoly" of the State power generators. The contention was that they didn't lack the capacity to generate more power but "decided" not to produce more for fear of increasing their losses.

These economists and experts say commodity prices are rising because the market is devoid of fair competition, or laissez faire. If some farmers do not get a fair price for their products, it is because market forces do not run the show.