The sorry state of our public infrastructures (schools, elevators, roads, bridges) which were reported recently indeed embarrasses us.

In my view the problem is not simply because of purely lack of funding. The real problem is the lack of incentive of true owners.

If these infrastructures were privately owned, they won’t be left unattended, uninsured, unrepaired and depleted in time.

If individuals can build, own, insure and maintain their vehicles so well, why can’t they build and own better school buildings, elevators and bridges?

Actually we are building infrastructures every day, under the direction of government, not owning them for profit unfortunately.

We already have the money to build them, we are all capable raising funding and directing resources, if not where did the government get the money and directing the resources to build them in the first place right?

When the government builds and owns the infrastructures for zero profit, once politicians cut ribbons; they will represent pure cost to the government at the expense of taxpayers - potentially making us pay for them twice!

Since they represent cost, then the infrastructures become the liability instead of become valuable capital assets within private ownership which give the owner incentive to keep them in good condition thus profitable in a sustainable way.

For example, let’s consider two scenarios. Both the farmer and the housewife raise chickens. The farmer sells the chicken and paid for it by customers who consume the chicken. The money the farmer used to buy and raise chicken is returned with the addition of a profit.

In the farmer’s context, he has not consumed (replacement) its money but instead he has obtained additional money which available for other purposes probably expanding the chicken flock or more consumption expenditures in future. The farmer’s expenditure is both self-sustaining and able to make next purchases of goods.

The housewife, meanwhile cooks the chicken, serves it and not paid for it. The chicken simply disappears in the physical consumption of my family. Just with that, money to buy an raise chickens is simply used up and gone forever.

If she wants to raise chickens again, she needs fresh money from outside sources which in the context of government, of course, the source is collection of taxes.

Similarly, a laundry bar owner buys and owns washing machines.

For the owner, every time the machine is used, it is paid for this use.

The laundry bar owner then obtains the payment, then uses the money to pay for repairs of the machine, probably buy new machines and expand his business.

Imagine if all laundry bars were owned and run by the government, what would happen in terms of cost to repair, at whose expense and cost to consumers?

Just think how silly it sounds when tomorrow’s newspaper carries the headline ‘183 public washing machines in Sarawak need urgent repair'.

MEDECCI LINEIL is with the Institute for Leadership and Development Studies, a new think-tank established to promote alternative policies and nationhood practice based on the market system.