The Indian Economy Blog

Archive for December, 2005

More On the Job Reservation Policy Front

Monday, December 19th, 2005

Following-up on Amit’s earlier post, New Economist has linked to a new paper by by Vani K. Borooah, Amaresh Dubey and Sriya Iyer: Has Job Reservation Been Effective? Caste, Religion, and Economic Status in India. You can find more details over at New Economist. Sriya Iyer’s work on fertility and religion is very interesting, and [...]

The Demographic Dividend

Monday, December 19th, 2005

Firstly, a quick hello and thank you to the Indian Economy Blog Team for inviting me to be a guest poster here. In this post I basically want to draw attention to a research article by Deutsch Bank’s Sanjeev Sanyal ( Demographics, Savings and Hyper-Growth). While I was chasing the link however I stumbled across [...]


Monday, December 19th, 2005

In the 1980s, it would take you years to get a telephone in India. Today, it takes anything from a day to a week. Q: What has changed? Ans: Competition. That’s why competition is a good thing, even if the competition keeps messing up. So Tata Indicom may give me sucky service and Reliance may [...]

Good News For China

Monday, December 19th, 2005

The Indian government is planning to further disincentivise Indian industry.

Lee Kuan Yew on India – Part 1

Sunday, December 18th, 2005

Lee Kuan Yew was invited to deliver the 37th Jawaharlal Memorial Lecture on 21st Nov 2005 in New Delhi. He called it “India in an Asian Renaissance.” I am an unabashed admirer of Lee Kuan Yew and I should also add that I am a very severe critic of Jawaharlal Nehru. So I decided to [...]

It’s In Our Hands

Saturday, December 17th, 2005

Tim Harford writes in the New York Times: The Group of 20, composed of developing countries like Argentina, Brazil, China and India, has been pushing hardest of all for an end to rich countries’ agricultural subsidies and tariffs. Paradoxically, some of the most vocal members of the group impose regulatory barriers that are just as [...]

Gold Over PPF

Friday, December 16th, 2005

Gautam Chikermane writes in the Indian Express: The villager in Nu, about 100 km off Delhi, is unconcerned with anything beyond his crop and capital. As and when he generates a surplus, if it is large enough, he buys land; if it is smaller, gold. Now, there are more than 150,000 post offices, four out [...]

Tilling Fields

Wednesday, December 14th, 2005

Speaking about FDI in retail, the Indian Express writes: Plenty has been said—and an awful lot written—about mom and pop shops shutting down and taking with them the friendly, smiling, simple shop assistants who apparently define a part of our culture. That’s what, with different details, America’s “liberal” and anti-free trade conservatives say about outsourcing [...]

Running Out Of Knowledge Workers

Tuesday, December 13th, 2005

The Hindustan Times reports: India contributes 28 per cent to the total talent pool of knowledge workers in the world. This has helped it corner 65 per cent of the information technology business and 46 per cent of the ITES market. But the greatest challenge staring the software services exports in the face is skill [...]

Business Is Not The Government’s Business

Tuesday, December 13th, 2005

What are the perils of the government being in business? When the state is in the business of running businesses, perverse incentives take hold. That is the question that Rahul Gaitonde asks and responds that India’s biggest problem today is an interventionist state. He studies the role of the government in the telecommunications sector and [...]

Prosperity And The Sex Ratio

Monday, December 12th, 2005

Jayesh Lalwani points me to an interview of Ashish Bose, a demographer, in which Bose talks about why “[s]tates such as Punjab, Haryana, Himachal Pradesh, Chandigarh and Delhi now have fewer than 900 girls per 1,000 boys.” He explains: The phenomenon of declining sex ratio that showed up in Census 2001 is worst in Punjab, [...]

Wars, Opium, Powerful Governments and Weak Nations

Saturday, December 10th, 2005

“It is the opium of the people.” Marx was referring to religion and why it was necessary. Opium is a powerful narcotic and painkiller. According to him – and I agree with his analysis – religion to the vast majority of the people is a comforting illusion made a necessity by their real miseries. He [...]

India vs China, (over)simplified

Friday, December 9th, 2005

Can China build proficiency in English faster than India can build infrastructure?

Standing At The Door

Friday, December 9th, 2005

Sonia Faleiro writes in her superb article on Vidarbha’s farmers of something an activist there said to her: Women tell me that each evening, they stand at the door terrified that their husband may not return. Read the full thing. Would any of the readers or fellow contributors of this blog like to offer a [...]

Accountability And Incentives

Thursday, December 8th, 2005

Johan Norberg, in a follow up to the post I discussed here, writes: On the Indian highways we made 40 kilometers/hour when we were lucky. In China that is called a traffic jam. Now they are investing more in this [infrastructure], but it´s not about money as such, the problem is the lack of accountability [...]

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