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floatrockyesterday at 4:06 PM1 replyview on HN

You misunderstand me... I'm not saying the privatization is a bad thing, handwaving it away, or saying lets throw government at it. I'm merely pointing out that in a 4,000 word essay trying to explain all the factors that let Japan have such a good railway system, there's a huge amount of emphasis on the privatization part, and zero mention of all the public sector subsidies that enable the entire system.

It's fine to talk about the efficiency of the private operators. No problem there. The dishonesty is in omitting any discussion of how the tracks that the whole system depends are built with heavy government support. Without that, one could be forgiven for reading that article and thinking "oh, just privatize it and you'll be as successful as Japan."

I think the take-away here should be more along the lines of what a working public-private partnership can look like and what roles each can play. I'd love to see a 4,000-word article that compares this model to the regional transit authority models we have in the US.


Replies

quadrifoliateyesterday at 5:29 PM

Did you miss this paragraph? They do talk about the subsidies from the national and prefectural governments.

> Carefully designed public subsidies also play a useful role. Although Japanese railways do not receive subsidies for day-to-day operations, they do receive government loans and grants for capital investments. These are typically tied to public priorities, such as disability access or earthquake-proofing, or to projects that have large spillovers that the railway company would be unable to internalize, like removing level crossings, or elevating at-grade railways or trams in order to reduce road congestion and accident risk. Generally, the local prefectural government will match the contribution of the national government. Larger new build projects are subject to lease back or debt-payment conditions that fare revenue is expected to pay back.

Unless this was added after the fact, I think this is mostly an issue of careful reading. To me, the article absolutely says that it's a hybridized system like you mention.