Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Sunday, January 03, 2010

Hope...

First off, a very happy new year to all!

Looks like the year is going to be one for the greedy one in you. The doom sayers have not had much to do since the world economy has shown some recovery steps. And if the below chart is any indication, the US economy (the bellwether) is back to its spending ways.




Here's hoping for a pink-slip-less year ahead for all (can one ask for more than this these days?). :-)

Monday, August 31, 2009

Interesting...

An interesting article...

Why Indians don’t give back to society

Some characteristics unite Indians. The most visible is our opportunism



Why don’t we worship Brahma? We know he’s part of the Hindu trinity as the creator, but we worship Vishnu, manager of the cosmos, and Shiva, its eventual destroyer. The answer lies not in religion, but in culture. But in what way does our religion shape our culture?



Max Weber explained the success of capitalism in the US, Germany and Britain as coming from their populations’ Protestant faith. This ethic, or culture, was missing from the Catholic populations of South America, Italy and Spain. Protestants, Weber said, extended Christianity’s message of doing good deeds, to doing work well. Industry and enterprise had an ultimate motive: public good. That explains the philanthropists of the US, from John D.Rockefeller to Andrew Carnegie to Bill Gates. What explains the behaviour of Indians? What explains the anarchy of our cities? To find out, we must ask how our behaviour is different.Some characteristics unite Indians. The most visible is our opportunism. One good way to judge a society is to see it in motion. On the road, we observe the opportunism in the behaviour of the Indian driver. Where traffic halts on one side of the road in India, motorists will encroach the oncoming side because there is space available there. If that leads to both sides being blocked, that is fine, as long as we maintain our advantage over people behind us or next to us. This is because the other man cannot be trusted to stay in his place.



The Indian’s instinct is to jump the traffic light if he is convinced that the signal is not policed. If he gets flagged down by the police, his instinct is to bolt. In an accident, his instinct is to flee. Fatal motoring cases in India are a grim record of how the driver ran over people and drove away.We show the pattern of what is called a Hobbesian society: one in which there is low trust between people. This instinct of me-versus-the-world leads to irrational behaviour, demonstrated when Indians board flights. We form a mob at the entrance, and as the flight is announced, scramble for the plane even though all tickets are numbered. Airlines modify their boarding announcements for Indians taking international flights.



Our opportunism necessarily means that we do not understand collective good. Indians will litter if they are not policed. Someone else will always pick up the rubbish we throw. Thailand’s toilets are used by as many people as India’s toilets are, but they are likely to be not just clean but spotless. This is because that’s how the users leave them, not the cleaners.



The Indian’s reluctance to embrace collective good hurts his state. A study of income-tax compliance between 1965 and 1993 in India (Elsevier Science Das- Gupta, Lahiri and Mookherjee) concluded that “declining assessment intensity had a significant negative effect” on compliance, while “traditional enforcement tools (searches, penalties and prosecution activity) had only a limited effect” on Indians. The authors puzzled over the fact that “India’s income tax performance (was) below the average of countries with similar GDP per capita”.



We do not think stealing from the state is a bad thing, and our ambiguity extends to corruption, which also we do not view in absolute terms. Political parties in India understand this and corruption is not an issue in Indian politics. Politicians who are demonstrably corrupt, recorded on camera taking a bribe or saying appalling things, or convicted by a court, can hold legitimate hope of a comeback—unthinkable in the West.



The opportunist is necessarily good at adapting, and that explains the success of Indians abroad. We can follow someone else’s rules well, even if we can’t enforce them at home ourselves. The Indian in the US is peerless at the Spelling Bee because the formula of committing things to memory, which in India passes for knowledge, comes naturally to him. But this talent for adapting and memorizing is not the same as a talent for creation.



The question is: Why are we opportunists?

In his great work Crowds and Power, Elias Canetti observed that the rewards religions promised their faithful were all far off, in the afterlife. This is because a short goal would demand demonstration from god and create skeptics instead of believers. There is an exception to this in Hinduism. Hinduism is not about the other world. There is no afterlife in Hinduism and rebirth is always on earth. The goal is to be released entirely and our death rites and beliefs—funeral in Kashi—seek freedom from rebirth. Christianity and Islam are about how to enter heaven; Hinduism is about how not to return to earth, because it’s a rotten place. Naipaul opens his finest novel with the words “The world is what it is”, and Wittgenstein ( “The world is all that is the case”) opens his Tractatus similarly.



Hinduism recognizes that the world is irredeemable: It is what it is. Perhaps this is where the Hindu gets his world view—which is zero-sum—from. We might say that he takes the pessimistic view of society and of his fellow man. But why? The Hindu devotee’s relationship with god is transactional: I give you this, you give me that. God must be petitioned and placated to swing the universe’s blessings towards you. God gives you something not through the miracle, and this is what makes Hinduism different, but by swinging that something away from someone else. This is the primary lesson of the Vedic fire sacrifice. There is no benefit to one without loss to another. Religion is about bending god’s influence towards you through pleas, and appeasement, through offerings.



Society has no role in your advancement and there is no reason to give back to it (in any way, including leaving the toilets clean behind you) because it hasn’t given you anything in the first place. That is why Indian industrialists are not philanthropists. Rockefeller always gave a tenth of his earnings to the Church, and then donated hundreds of millions, fighting hookworm and educating black women. Bill Gates gave $25 billion (around Rs 1.2 trillion), and his cause is fighting malaria, which does not even affect Americans. Warren Buffett gave away $30 billion, almost his entire fortune. Andrew Carnegie built 2,500 libraries. Dhirubhai Ambani International School has annual fees starting at Rs 47,500 (with a Rs 24,000 admission fee) and Mukesh Ambani’s daughter was made head girl. An interesting thing to know is this: Has our culture shaped our faith or has our faith shaped our culture? I cannot say. To return to the question we started with: Why is Brahma not worshipped? The answer is obvious: He has nothing to offer us. What he could do for us, create the universe, he already has. There is no gain in petitioning him now.



Aakar Patel is a director of Hill Road Media. Write to Aakar at

replytoall@livemint.com

Wednesday, February 04, 2009

Idea Sirji!

Last weekend, I was watching a football match and also a cricket match and voila, I get another pointless idea and I am bored enough right now to think its important enough. :-)

So, here goes... We have electronic boundary boards showing Ads during football. This means, its not a stagnant single company Ad made of paper and stuck on some cardboard. This is an LED (similar?) board which can show any Ad at runtime. Cricket hasn't gotten that sophisticated yet, but it will get there sooner rather than later. Lets take the case of football first. A live English Premier League game is watched in so many countries. Now, lets take a site like 888. They are a big deal sponsor in EPL and pay quite a bit to get onto these electronic boards. This site is not well known in India and the EPL folks are not going to get as much money(or viewership attention) showing this Ad while telecasting in India when compared to Airtel or similar. Likewise, the India vs SL series is mainly sponsored by IDBI Fortis, a new investment wing of IDBI bank. I am quite sure they have next to no presence in SL and hence this is meant mainly for the indian TV audiences. So, what about the Srilankans ? Wouldn't they be relate more to say, Dilmah Tea ?

In case you haven't got what I am getting at, my idea is that all the boundary boards be made green in colour, so as to make it easily graphicable, for lack of a better word. So, just like in the movies, with the help of Computer Graphics, the green coloured boards can house country specific Ads, hence increasing the sponsorship worth of events and hence more money flowing and more glamourous and all that good stuff.

There is this one glitch of the actual money paying viewers at the ground seeing just green boards. But I am sure there is some technology that can come to help in this case too.

How does it sound ? Can this fund my EMIs while the recession eats aways more jobs (me next?) ? :-)

Wednesday, November 12, 2008

Bad to Worse

My second favourite gadget stop is teethering! How many more pins to fall ? :-((

Tuesday, October 07, 2008

Sub-prime prequel

Here is a real nice article on the reasons for what transpired on wall street over the last month or so. [Thanks to Patel]



Don't miss the last line of the article. The guy still wants us to keep putting money in. :-D

Tuesday, October 23, 2007

Closing loopholes

The finance ministry in India has notified the guidelines for ESOPs given by a company and the tax implications of the same. It apparently does not cover the situation regarding a company not listed in India giving stock options to its employees working in India. A friend of mine found this doc which helps understand this more.

Lemme ask for more official help and figure this out...

Sunday, August 12, 2007

Rich get richer...

... and its cliche to say the poor get poorer. In a fast growing economy like India, the economic disparity is evidently visible. Every big-building dotted skyline is greeted with a slum next to it. This being said, the current economic drive does touch the lower strata of the working class, even if its only the tip of the iceberg.

There is this barber who set shop some three years ago close to where I stay. He had four chairs in his shop, but he was the only one working. He kept the place clean and would wait for customers to come in from 7AM to 9PM everyday. He would have been happy if one person had walked in once an hour, and even that was too big an ask. I have seen him actually give free haircuts to people on "credit". He was sure he would never get paid, and was never happy giving the credit. But none the less, growing the business was important and he did what he had to do. I talked to him in detail every time I went over for a haircut and he would say about how difficult life was and continues to be. He talks about the money he has taken from a money lender and the interest he has to pay. But no matter what, he always kept the place very clean and kept biding time, and waiting...

Now, three years later, his business is well set. He has people who work for him doing duty at all the four chairs. All the chairs for waiting customers are occupied and he stands outside (no place inside the shop) greeting customers and overseeing the work being done. He has increased the amount he charges by 20% and has added some value adds to his business proposition now. He has bought new equipment (trimmers and electric shavers), has a person dedicated to do massages and almost no sharing of gear among his workers, which is rare in this business. His patience and his hard work are finally paying, and he sure deserves it.

Though there is a possibility that this is an isolated case, I would like to believe that the effect of the growing economy has reached the people whose economic development will push India into the developed countries list. Three cheers to our protagonist and lots of wishes to every other hardworking dreamer waiting for his crack at this economy.

Monday, August 06, 2007

Insurance vs Investment

I am gonna delve into a topic I know very little about(not that I only write about what I know. :-)), money. I have been a speculator during my last few years of investment in the equity or secondary markets and only recently have started paying a little more attention towards valid reasoning before investing. So, with this as a backdrop, please take everything I write on this topic with a pinch of salt. :-)

I have been wanting to take a good life insurance cover for a couple of years now. In the process of deciding which one to go with, I was talking to friends and family and I was in for some informative surprises. ULIPs (Unit Linked Insurance Plan) have been very popular off late because they provide you with insurance cover and also invest in the hot Indian equity market. Seems like the best of both worlds? Not quite! A couple of friends at office, nsd and patel, gave me some gyan on this and after some reading of my own am convinced that ULIPs are the worst of both worlds. They don't give you inadequate life cover and they also perform worse than many mutual funds in terms of returns.

Follow this link (thanks to patel) for those interested in understanding this better.

Monday, July 16, 2007

More or Less

While watching CNBC today, I noticed a news ticker which read, Indian economy growth rate expected to be 9% while the inflation is going to be pegged at 4%. How do I interpret this ? Good or bad? Does this mean, if we don't invest in the market/economy, are we losing out on 5%? Does this mean, employers should give an extra 5% hike to folks to maintain parity? :-) or should folks be encouraged by the company to use online trading floors during office hours to make this extra money?

Damn... need to go sleep. :-)