Pro-industrial policies promote industry, pro-health policy promote health, pro-education policies promote education. So it is natural that India’s pro-poor policies — and let’s be very clear that every single one of India’s economic policies have been pro-poor — work and promote poverty and the number of poor keeps on going up. The absolute number keeps growing. What about the percentage? It does keep improving.
So what’s the latest on poverty in India from the World Bank? It is reported that the WB released some study which talks about the changes in …

There can be no doubt that Australia is looming larger and larger on the Indian horizon. Speaking personally, thanks to my participation with the LAFIA2008 — Leading Australia’s Future in Asia-Pacific — delegation in July, I have gained an increased appreciation of the issues that will draw Australia and India into a deeper strategic and economic relationship.

Markets Work, Incentives Matter
The two broadest generalizations one arrives at from a study of economics are that markets work and that incentives matter. People respond to incentives because that is at the core of what it means to be rational. To the extent that humans are rational, their behavior is predictably in the direction that existing incentives point to. Trade between humans is rational because both parties in any voluntary trade benefit. The abstract mechanism which enables trade is called the market. Markets work in the sense that they maximize …

The following is an article by me that appeared in ISB’s in-house magazine insight June 2008 issue.
There is a definite positive relationship between the size of the habitation and the productivity of the population.”
The full article is below.

Anyone familiar with the disastrous state of India should not be overly surprised to learn that the Indian parliament has an overwhelmingly greater percentage of criminals than the general population. How effectively a nation functions and how successful it is depends on its leaders who make public policy and thus critically determine the outcome. India’s failure to develop and achieve its potential is proof positive that its leadership is lacking.
Underdevelopment, poverty, and all other ills that plague India are an unavoidable consequence of poor public policies and choices.

I have argued in the past that India is poor by choice — not by necessity, nor by a heavenly compulsion, or a divine thrusting upon, or an enforced obedience of planetary influences [1].
“Of course, that does not mean that every poor Indian has chosen to be poor. Someone else in a position of power made choices whose consequences are evident. India’s leaders – past and present – have consistently made choices that have had, and are having, a disastrous effect on the lives of hundreds of millions of …

This is a follow up to the previous post, “Begging for a World Class University.” In this I will address two responses to the post: one, the comment left by Aditya, and two, a post by Pramode titled “A Question (or two) for Atanu“.

Consider this scenario. Someone you know imprisons his grown up children and does not allow them to go out and do jobs that they are fully capable of doing. He also locks up his productive assets and prevents his children from using them. Then he goes around begging his neighbors for help with feeding his family as he does not have any income. The words that spring to mind upon considering this man’s behavior are words like contemptible, immoral, stupid, pathetic, pitiable, and sad.

From the Chicago Graduate School of Business magazine a brief talk with Gary Becker, “one of the first economists to study topics traditionally considered the purview of sociologists including racial discrimination, crime, family organization, and drug addiction. His work on those subjects earned him the Nobel Prize in economic sciences in 1992.”
Becker is big on human capital. He talks about the importance of human capital in organizations. Economists consider human capital to be critical to development of economies. Education is therefore directly implicated in development. Here are a few quotes …

A magazine article in the New York Times of April 13th has the rather mistaken and misleading title “Can the Cell Phone End Global Poverty?” (Hat tip: Abhishek Sarda). The article title is misleading because it doesn’t even remotely attempt to answer that question. It is instead about what is called a “human-behavior researcher” or “user anthropologist,” in this case someone who works for Nokia and essentially tries to figure out how people actually use their phones and thus how phone companies should design phones for greater usability.

The other I sat down to have a conversation with the spirit of Dr Adam Smith (1723-1790), professor of moral philosophy at the University of Glasgow and Fellow of the Royal Society of London and Edinburgh. A stellar observer of the human condition, his book, “An Inquiry into the Nature and Causes of the Wealth of Nations,” was published in the same year, 1776, as the Declaration of Independence of the United States. Opinion is divided on which of the two events is of greater importance for the subsequent evolution …

That’s what a report in the Hindustan Times claims: US $13 billion each year. Figures such as these are unbelievable but I suppose someone must have done the numbers. In any case, I had estimated that number to be around $10 billion a few years ago.
Let’s pause for a moment and figure. $13 billion every year. Or in the last 10 years, about $100 billion. Imagine what you could buy for that money. How about 100 colleges with first class infrastructure with housing, classrooms, labs? Each year India could …

This is a follow up to the post “Suicide! Suicide!”
Of shoes and ships . . .

Let me tell you a story. This happened many years ago on a train journey. A couple of children were running around the compartment playing. The father of one of the kids, busy talking to a fellow traveler, would every now and then stop his son and tie the kid’s shoelaces. He repeatedly retied the laces but in a few minutes they would mysteriously come untied. I watched with growing frustration and anger at the …

I have it on good authority that Satyameva Jayate is India’s national motto. The English translation of the Sanskrit is “Truth Alone Prevails.” Is that claim itself true? Can it really prevail in a land where some people are afraid to speak what they perceive to be the truth because some others confront that expression with violence?
Thomas Jefferson claimed over 200 years ago that “it is error alone that needs the support of government. Truth can stand by itself.” I agree only partly. I don’t think that without courageous people …

A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury.
– Alexander Tytler
Some numbers are well beyond human comprehension. We can talk glibly about millions and billions of this or that but we cannot intuitive grasp what they actually mean. Evolution has equipped us with fine brains but those brains never needed to deal with thousands — leave alone millions — of anything. So we have to do some mental …

Information, Not Plastics
The world has come a long way since the 1960s when the future was defined by one word – “plastics” – as Mr McGuire advised the young graduate Ben. Now the future is defined by another word and the word is “information.” Plastics was a wonder product of the world of industrial technology which fundamentally transformed the world of objects. Information is the new thing, the product of information technology, which is going to transform the world of ideas. Actually, information is not a “thing” in the usual …

There appears to be a thriving cottage industry which is primarily engaged in churning out shallow pieces of journalistic garbage. The pieces detail a particular person’s or family’s struggles and then juxtapose it in some dramatic way with perceived overall prosperity. The implicit argument is that there is an immense injustice being perpetrated against the poor, that it is all the fault of those who are not poor, and that the poor have absolutely no responsibility for the miserable state of affairs. These articles reveal a lot without intending to. …

Don’t read Tavleen Singh’s column “Educating the Education Minister” in the Indian Express today if you wish to continue being puzzled by the question why India is poor.
Basic decency and propriety prevents me from suggesting what should be done to the Indian minister she writes about. Shame on you, Dr Manmohan Singh. Please, in the name of everything decent and human, resign.

Over four years ago I had written a post titled “Choosing between WCs and PCs” — it is one of my favorite posts and features my friend CJ. Put that on your reading list. I am reminded of that post by an Economist article of last week titled “Limits of Leapfrogging.” The article concludes with this:

Enclaves of Private Luxury
Just off the expressway from Mumbai, on the road leading into Pune, you see huge billboards advertising new housing developments with fancy names like “Whispering Pines” and “Orchard View” crowding each other, promising idyllic lifestyles of lavish comfort. They convey very urgently a palpable sense of how rapidly the market for private luxury dwelling is blossoming thanks to increased salaries and easy housing loans.
These billboards reflect the increased aspirations of the growing upper middle-class in India. Curiously, one set spoke to a deeper and disturbing reality. …