India has its own form of state-backed capitalism too

State owned enterprises such as BHEL have been competing successfully on their own in India and elsewhere. These are different from the monopolistic energy companies. Private management is of little use when the structural aspects of a competitive market are still stage-managed and manipulated by the govt. - eg telecom sector in the initial years, energy sector (prices are de facto determined by govt though claimed as market linked), and power supply (pointed out in this article). PPPs in monopolistic business e g airports, will necessarily be subject to controlled pricing and the limited returns entailed (they also receive protection from competition as part of the deal). The key issue is to provide management freedom to operate and introduce private players. Outfits such as State Bank of India have excellent human resources, many of whom have formed the backbone of private sector banking and profitability in India.