Homoeconomicus Issue#1

Black Swan Theory pg. 44

Economics of Self Development pg. 50

HOMOECONOMICUS

An Irrational Quest for Rationality

Pricey

Onionlysis

Jan 2014 Vol 1. Issue No.1

Pg.

Bitcoin Mania 9

Rigged

Reviews Pg.

Econsutras 20

Tattle-Tales Pg.

The Great Indian Bulge 23

Tripping on

Economics Pg. 29

Mean Girls Meet Market

Paper

Mache Pg. 39

Rickshawalas in a Metropolis

In our

Shoes/Chappals Pg. 52

5 Theories of An Intern

Premium Issue

Editors’ Pick Altruistic Economics Beyond Theory and Practice

Pg. 6

Foreword……………………………….4 Note from HOD and Editors’ Desk…..5 Pricey Onionlysis Altruistic Economics - Beyond Theory and Practice………………………………………………………..6 Anirudh Tagat (Guest Writer) India as a Knowledge Economy - The Importance of Education……………………………………………………….8 Ashwini Maslekar Bitcoin Mania…………………………………………...9 Coins, Jazz and Mines BOLLYW(100)D Crores…………………………….10 Devanshi Shah Health Policy in India: Present and Way Forward…………………………………………………….11 Rama Pal (Guest Writer) Lessons from a Neighbour………………………….12 Puja Vijesh Parmar

Rigged Reviews Breaking into Gringotts……………………………...15

Tripping on Economics Mean Girls meets Market for Lemons………..29 Malathi Jogi The Arth of Economics………………………….31

Koustubh Joshi (Guest Writer) The Politics of Economics…………………………….32 Gaurav Khandelwal (Guest Writer) आरोग्याविम्याची अत्यािशकता......................................33 Swati Bhat

Economics of UPSE………………………………...35 Kaustubh Bambarkar Economics as bread & butter…………………...36 Devayani Ganapule (Guest Writer) How to Analyze the Economy of a Country?...37 The Creative Conscientist Gour-Make at home……………………………..38 Sanjukta Nair

Paper Mache Driven by Need- Rickshawalas in a Metropolis…………………………………………………….39 Reshmitha Jose and Koninika Roy Globalization: A Paradoxical Result?.................41 Anupam Ghosh

Saawani Rajyadaksha

Black Swan Theory……………………………….44

Modinomics in 2014?.................................................16

Shivika Basin

Mukesh Kuwad (Guest Writer)

भारतीय अर्थव्यिस्र्ेच्या मोडकळीची कारणे......................48

Wall Street: Money Never Sleeps………………….17

Suneet Sumant Herekar

Amruta Bagwe The Inner - Way to Economic Competence……..18 SamPurnaNand The Rise of the Dove………………………………….20 Sharika Dhar Econsutras……………………………………………...20 Purnima Nair and Vasudha Ramakrishna

Tattle-tales The Great Indian bulge……………………………….23 Oorvi Ranadive Partition of Vidarbha, and how we can prevent it………………………………………………………….25 Raj Kamble Digging Deep into our Pockets……………………..26 Shruti Shirhatti Courtesans for Gods………………………………….27 Anjana Telang

In our Shoes The Economics of (Self)Development………...50 Siddhant Sharma The 5 theories of Intern………………………….52 Deepthi Rajan Bank Nationalization- a Practitioner’s Sights and Insights………………………………………...53 Dilip Prabhakar Joshi (Guest Writer) All Aboard Learn Abroad……………………….55 Adwait Bhaskar Aras See Through the Glass Ceiling To Break through It…………………………………………...56 Divya Venkataraman Moments at King’s………………………………..58 Lady Obsessalot

Editorial (Homoeconomicus is "Inceptioned") …………………………………...60 Melony Snickette and the Editrix Extraordinaire

Credits…………………..62

VOLUME

1

ISSUE

11

PAGE

4

Dr Rupa Rege Nitsure Chief Economist & General Manager Bank of Baroda

I

t is with great pleasure that I present to you the current issue of Homoeconomicus – a cross college magazine initiated by some passionate students of humanities from the renowned colleges of Mumbai. The magazine has a spacious canvas with multidisciplinary flows. Just to make a sense of its reach, it receives entries from round about fifteen colleges, ten disciplines, seven universities, four cities, three languages and varied age groups.

Foreword

While the magazine is entitled as Homoeconomicus – a science about rational persons who pursue wealth for their own self interest, its line of enquiry goes beyond economic rationality, challenging the standard assumptions of economic rationality and unbridled self-interest with more behaviorally realistic alternatives. The primary strength of this magazine is that, it has fostered multidisciplinary academic engagement so as to provide the undergraduate students, a variety of perspectives that go beyond their formal programmes of study.

Inside the issues of Homoeconomicus, you will find discussions on conceptual issues as well as their practical applications; debates on broader policy aspects; reviews of books, movies, personalities & academic courses; interviews with persons working at the grass root level and also selective research papers by guest authors from varied disciplines.

Personally, I see a great educative value in the efforts like Homoeconomicus. Generally, during the undergraduate years, students are advised to read books and acquire knowledge from the works of great authors or by listening to their teachers. But merely by reading books or listening to teachers, one does not get sufficiently educated. Our students need a platform to write and express their own ideas in a good form and in whatever language they are comfortable with.

I think, Homoeconomicus has filled the void

HOMOECONOMICUS

and provided a mature platform to those, who wish to grow beyond the set syllabus and challenge the established ideas. At the same time, it is encouraging a wider community of students to think and develop their writing skills. It is extremely important for the students of social sciences, in general and that of Economics, in particular to develop their own power of thinking and strengthen the imagination. By contributing to a cross college magazine like this, the students are not just adding to their pool of knowledge but also learning the value of cooperation and healthy competition.

I see Homoeconomicus as a powerful source of self-help and self-confidence to the students of humanities.

To conclude, generally people associate writing with English department, and only to a lesser extent, with the subjects like Economics. Although we may think of Economics as the subject involving problem sets or mathematical equations, the fact remains that the results of Economic research are “written up”. As was said by Richard Schmalensee, an economist at MIT, “In talking about the economists’ craft, it is almost impossible to overstate the importance of clear and persuasive writing”.

I salute the team of Homoeconomicus for realizing this “need” at an early stage and making a positive difference to the undergraduate student community.

Thank you.

PAGE

5

T

1. Apply theory in real life circumstances and subsequently substantiate/ denounce the same 2. Discuss (perhaps rant) out loud their apprehensions and thoughts about policy and socio-economic issues 3. Review Books/Movies/Personalities/ Academic courses 4. Talk about Personal Experiences at the Grassroots 5. Publish Brief Research Papers Over and above this, the magazine intends to continuously study itself and economics students, with academic interest. This year’s issue features a small study of 100 and odd participants with the theme, “Everything Economics students want to know about other Economics students”. Keep an eye out for the results of the same, which are strewn all over the magazine1.

We would also like to take this opportunity to thank the entire Team for their immeasurable efforts and enthusiasm. Editors; Mallika, Manasi, Purnima, Shruti, Swati, Vandana and Vasudha. Coordinators; Apoorva, Joshika, Priya and Neha. Administrator: Kanchan and Creative designers; Anurag and Shashank.

Kanchan, Shashank and Ruia seniors must also be credited for having been those who on the onset, envisioned the magazine and launched the efforts to materialize the idea. We would especially like to thank Anirudh Tagat for sharing his content expertise and overall guidance. We would also like to express gratitude to all the faculty members of our department; namely, Prof. Devayani, Prof. Varsha and Prof.

Kaustubh. We hope you enjoy reading this premiere edition (as much as we enjoyed putting it together for you) and come to the same realization as us that; “Economics is inextricably linked to everything important!”

Happy Reading, Aditi Abhyankar, HOD Economics, Ramnarain Ruia College, Editors-in-chief Sneha Menon and Akhil Oka.

HOD’s Note & From the Editor’s Desk

he active and dynamic Economics Department of Ruia College has been a model and microcosm of a well functioning economy. Events take place throughout the year and bring its denizens together to discuss, debate, learn and collaborate. The only aspect missing so far was the press, the fourth pillar of democracy; a forum for ideas to flow from one corner of the economy to another. Presenting to you Homoeconomicus, a first of its kind crosscollegiate, cross-university economics magazine that features work from students and guest writers from multiple disciplines and schools of thought. The objective of this magazine is to allow the youth to;

PAGE

6

Altruistic Economics

R

ecent research in economics has unravelled a mountain of scientific evidence that has previously remained unexplored. Indeed, the field of economics is seeing sweeping changes to the way in which research is carried out, as well as the topics that economists are increasingly dealing with. Take for example, the recent book ‘Indianomix: Making Sense of Modern India’( Dehejia and Subramanya, 2012) which best represents how economics is borrowing from fields like psychology, anthropology, political science, and evolutionary theory (to name a few) to understand society’s problems. The book deals with problems as diverse as hailing a taxi in Mumbai to the role of culture and religion in our lives. More than anything, it accurately reflects recent shifts in economic thinking: something that we often overlook when immersed in a full-time formal degree in economics. It is important to understand how going beyond our current economic perspective is only beneficial for achieving a better picture of everything that is economics and this article aims to aid in this understanding.

Firstly, it must be said that intertwining fields such as psychology and political science with economics is not exceptionally novel, i.e. it has been an active means of economic analysis under the aegis of behavioural economics and political economy. In fact, areas like mathematics (e.g. game theory) and statistics (e.g. econo-

HOMOECONOMICUS

metrics) have contributed much more to our understanding of economic issues than others, so clearly economics as a social science has largely borrowed from other sciences. With that said, behavioural economics offers a view of economic decisions (such as spending time reading this magazine) that test how psychological phenomena affect such decisions.

For anyone who is thoroughly

economics1. Recent studies in behavioural economics include studying the role of moral/religious codes in dishonest behaviour, such as cheating on a test (Ariely, 2013), ‘nudging’ people to make choices that are optimal in their own right (Thaler and Sunstein, 2008), and how social norms and social preferences drive our selfish (and often altruistic) decisions (Binmore, 2010).

Next, we see that ‘sister’ fields such as experimental economics have taken centre stage owing to their immense utility to testing behavioural economics theories, as well as falsifying existing, traditional economic theory (Kagel and Roth, 1995). Experiments have become particularly popular in playing out game theoretic-situations for human subjects (i.e. testing if the The Multidisciplinary Pillars (Source: http://commons.wikimedia.org/wiki/File:50,000_Views!_ prisoner’s dilemma (2173091583).jpg, Author: Koshy Koshy ) is indeed a dilemma dissatisfied with learning the for people). assumptions of any economic model (which, in their own Some experiments in ecoright, are absolutely justified in nomics have gone far betheory) might immediately yond the comforts of the take a shine to modelling ecolaboratory (which gives a nomic behaviour using psyresearcher the advantage of chology or evolutionary biolhaving complete control ogy, since it partly consists of over how the decision is appealing to one’s own sense presented/tested) to the of intuition in analysing

Guest Author

The Opinion Editorials in this section will make you think till you know your onions,

Pricey Onionlysis

Beyond Theory and Practice

Guest Author

VOLUME

1,

ISSUE

1

field – this necessarily requires more resources to organize, but essentially guarantees identifying causality (for more on field experiments, see Harrison and List 2004). Natural (or field) experiments have become wildly popular in economics as it allows one to assess policy impacts, as has been done by several researchers (Banerjee and Duflo, 2011). Recent assessments range from studying the factors involved in school choice, to assessing the impact of amending the Hindu Succession Act (1956) to grant women equal inheritance rights (Deininger et al., 2013). Clearly, experiments indeed show the path to a new understanding of how we make decisions ‘in real life’.

Furthermore, indicative of the strength of this recent trend in economic research, we see that experimental and behavioural economics have managed to creep into research in India as well (Chakravarty et al., 2011; Kulkarni and Hatekar, 2013), even if currently at a nascent stage. With that said, economic research in India desperately needs an infusion of new methods, stronger research questions, and perhaps become less policy-centric. If the recent debate around economic growth and development is anything to go by (Bhagwati and Panagariya, 2013; Drèze and Sen, 2013), economic research in India has much to do to contribute to this area of research. A corollary to this would be the economic data that is at hand which helps fuel this research. In essence, better availability of reliable data would directly translate into improved research, and this is something that is steadily changing, responding largely to the demand for better data from those intrigued by the Indian growth story.

Continuing the brief digression to the Indian context of economics research, it would be a grave error to say that there is a dearth of good research.

Universities, think-tanks, and other

PAGE

research institutions have contributed vastly to the present research scenario in India. There are extensive datasets that offer crucial insights into the state of the economy – both at the macro and micro level (for example, see the Rural Economic and Demography Survey [REDS] by the National Council for Applied Economic Research [NCAER] that have resulted in better analyses for countless research studies.

Finally, we can state that the state of flux for economics research (both in India, and world over) is a good indication of a belief in collaboration, scientific rigour, and a system designed to (mostly) ensure that the (usually) best research survives. The inter-and-multidisciplinary approach to economics will only give us richer insights into the way we function, and ultimately how society (or an economy) runs itself.

While many important issues are already the focus of mainstream economics research, there is treasure everywhere, waiting to be found.

1

This is of course completely tied to the point that learning economics, or studying it may simply never be as efficient as understanding how to think about economics. But this would deserve a separate article of its own and is not dealt with here.

1

This is of course completely tied to the point that learning economics, or studying it may simply never be as efficient as understanding how to think about economics. But this would deserve a separate article of its own and is not dealt with here.

References Ariely, Dan. “The Honest Truth about Dishonesty: How We Lie to Everyone-Especially Ourselves.” Harper, 2013 Banerjee, Abhijit and Esther Duflo. “Poor economics: A radical rethinking of the way to fight global poverty.” PublicAffairs Store, 2011.

7

Bhagwati, Jagdish, and Arvind Panagariya. "Why

Anirudh Tagat believes he is an altruistic economist, even though the term itself may be a misnomer. After completing a BA in Economics and Statistics from Ruia College, he graduated from the University of Warwick with an MSc in Economics in 2012. His research interests include cultural differences in decision-making, behavioural economics, the economics of contracts and experimental economics.

Anirudh is currently Consultant Research Analyst at the Institute of Rural Management Anand (IRMA), Gujarat and his recent work can be found at thealtruisticeconomist.tumblr.com. He can be reached at atagat@gmail.com for any potential disagreements and Growth Matters." A Council on Foreign Relations Book, 2013.Harrison, Glenn W., and John A. List.

"Field experiments." Journal of Economic Literature 42, no. 4 (2004): 1009-1055.

Binmore, Ken. "Social norms or social preferences?." Mind & Society 9, no. 2 (2010): 139-157.

Chakravarty, Sujoy, Daniel Friedman, Gautam Gupta, Neeraj Hatekar, Santanu Mitra, and Shyam Sunder. "Experimental economics: a survey."

Economic and Political Weekly 56, no. 35 (2011): 39-78.

Dehejia, Vivek, and Rupa Subramanya.

“Indianomix: Making Sense of Modern India.”

Vintage Books/Random House India, 2012.

Deininger, Klaus, Aparajita Goyal, and Hari Nagarajan. "Women's Inheritance Rights and Intergenerational Transmission of Resources in India."

Journal of Human Resources 48, no. 1 (2013): 114 -141.

Dreze, Jean, and Amartya Sen. “An Uncertain Glory: India and its Contradictions.” Allen Lane, 2013.

Kulkarni, Savita, and Neeraj Hatekar.

"Stereotypical Occupational Segregation and Gender Inequality." Economic & Political Weekly 48, no. 32 (2013): 113.

Roth, Alvin E., and John Henry Kagel. The handbook of experimental economics. Vol. 1. Princeton: Princeton university press, 1995.

Thaler, Richard H., and Cass R. Sunstein. Nudge: “Improving decisions about health, wealth, and happiness.” Yale University Press, 2008.

PAGE

I

8

India As A Knowledge Economy The Importance of Education

n the last decade India has seen a dramatic change over from being an information society to being a knowledge economy. In 2002, the then president of India Dr. A P J Abdul Kalam’s strategy ‘India 2020- a vision for the new millennium’ stressed on India’s transition to a knowledge economy. Precisely, a knowledge economy is one which creates, disseminates and uses knowledge to enhance its growth and development (World Bank Institute). Today, knowledge has become a source of wealth at all levels of economy and is increasingly becoming the only source of competitive advantage an organisation has over another4.

The Two Facets As one talks about knowledge, the importance of education cannot be ignored. Contrary to popular belief, education and knowledge are two different things. To put it simply, education is the process involving teaching and learning which enables one to acquire knowledge and develop skills.

Nobel laureate Amartya Sen has correctly noted that education adds to the value of production in the economy. The World Development Report of 1998-99 states that, ‘Education is the key to creating, adapting and spreading knowledge…’. . Several economic research studies have found that education not only increases an individual’s earning potential, but also produces a ‘ripple effect’ throughout the economy3.

These statements highlight the fact that education no longer remains a development issue, but is now equally important for a country’s economic growth and is especially vital for a country like India which aspires to be

HOMOECONOMICUS

and projects itself as a knowledge economy. Typically a knowledge economy requires the emphasis to be on science, information and communication technologies, development of interpersonal skills and more importantly an advanced secondary and tertiary education to boost productivity, research and innovation.

Examining Status Quo Thus, education in general, secondary as well as higher education in particular, play a key role in realisation of India’s potential and goal of economic development. Owing to the recent developments on the Indian economic front there has been an increased demand for higher education by the youth.

However, being a part of the education system of the country as students, it is no surprise that the education system in India is in an unfortunate mess. The unresolved issues pertain to quality, capacity, flexibility, autonomy and privatisation to list a few. These issues are of vital importance for the country, as it is engaged in the use of higher education as a powerful tool to build knowledge based society of the 21st century. There are a number of measures which will help in the betterment of the state of education in the country be it social, economic or political.

Take public expenditure for instance.

Public expenditure is an important instrument of the fiscal system and, the size and pattern of public spending has great relevance in the growth process.

Public expenditure on education is an indication of how a country prioritises education in relation to its overall allocation of resources and it is measured as a percentage of the country’s GDP. Until the 90’s, Indian education sector was built on the core principle that it is

the state’s responsibility to educate its citizens. However, the rapid growth witnessed in the last couple of decades created a huge demand for an educated and skilled labour force. To meet the manpower needs of the dynamic economy, private enterprises began cropping up to compliment public educational institutions. Today, the Indian education system (particularly higher education), has gone from a predominantly public to a mixed public-private system (EPW). Government’s involvement is increasingly being restricted to primary education. The private sector views education as “for profit” which is harmful to the students.

Although it is at times advised that due to financial and managerial constraints higher education should be operated under private institutions, it is unwise to do so in a developing country like India where many still find education unaffordable.

Computer class at school (Source: http://commons.wikimedia.org/wiki/

Looking at some statistics one finds that public expenditure in education is highest for elementary education (about

VOLUME

1,

ISSUE

1

50%) followed by secondary and higher education (13%) by the education departments. An explanation for this can be that the Indian federal system provides for a decentralised system of governance of higher education1. As a result the union government has little control while the resource starved state governments rely heavily on private sector for expansion. The total expenditure has remained around 3-4% of GDP for the last decade even when India has had the goal of spending 6% of GDP on education for the past three decades2. Economic and political analysts have questioned the seriousness of the government about the role of education, especially higher education in promoting change and equality in this age of globalisation and privatisation.

Realizing the Potential With the emergence of the network society and knowledge economy there is an ever increasing need for educa-

Bitcoin Mania Everyone has heard about Bitcoin.

Lately it has been all over the news so you can’t miss it. So what exactly is Bitcoin? Bitcoin is the world’s first cryptocurrency which uses cryptography for security, thus making it difficult to counterfeit. It was introduced by Satoshi Nakamoto in 2008.

From a user’s perspective, Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them.

So how can you own Bitcoins? Technically, anyone can produce or ‘mine’ bitcoins. All you need is a PC. However, the most popular way would be to join a pool and each time it solves a specific and difficult

PAGE

tional reforms in the country.

Hence, there is a need for a favourable policy environment for private sector participation in Indian education. Greater importance should be given to research and development, technological adaptation and innovation. Increased aid by the corporate sector and partnerships between government and private sector is desirable. This will produce favourable outcomes for the education system and benefit the economy in the long term. India has tremendous potential to emerge as a successful knowledge economy and although the challenges are many; proper governance and sheer political will are the prerequisites for the path to reach the highs of being a knowledge economy.

Ashwini Maslekar The writer is currently pursuing post graduation in Economics from Mumbai University, is strikingly curious as a peering cat And will remain a proud Ruiaite forever!

2.EPW - Higher Education in the BRIC Member -Countries Comparative Patterns and Policies 3. Nexus between Government Expenditure on Education and Economic Growth: Empirical Evidences from India - Abhijit Chandra (Lumen Publishing House) 4.India and the Knowledge Economy Leveraging Strengths and Opportunities:Carl Dahlman, Anuja Utz(The World Bank ) 5. http://www.firstpost.com/economy/indiasnext-big-growth-bet-seriously-you-need-tostudy-this-171101.html

References: 1.Azim Premji University - The Role of Government of India in Education

mathematical problem you will get a block of bitcoins which is normally shared within the pool. So you can actually accumulate bitcoins without spending a dime. The easiest way out, of course, would be to purchase Bitcoins from someone who already owns them.

The price of Bitcoin works on the principal of demand and supply. In this case, supply is limited. Creators1 have fixed the supply of bitcoins to around 21 million, of which 12 million bitcoins have been produced as of December 2013, and no new bitcoins can be added into this stock. Therefore, theoretically, a bitcoin cannot be devalued. As time progresses, the available supply of bitcoins is expected to decrease, eventually reaching its limit near 2140. Hence it is expected that the value of a Bitcoin will shoot northwards in the long run.

Is this a fad? For any currency to work there has to be a value associated with it. Bitcoin does not have any government backing. So currently it is working only on ‘perceived value’ or in better terms speculative value. The worth is determined by what others are willing to pay for it.

Moreover the value is not pegged in any single currency.

Buyers may pay in dollars, rupees or even services. In fact some people are willing to offer services in exchange of Bitcoins only to accumulate them in anticipation of a price rise. Hence it is currently riding on a greater fool theory.

Everyone is purchasing in the hope that they can find a ‘fool’ to purchase it when the prices rise.

Today there are very few merchants who accept Bitcoins as an

9

PAGE

10

But hold on to that thought. Where is this money coming from? A computer? Can it be possible that I don’t do any work and invest in a PC which will ‘mine’ money for me 24 / 7? And I can do whatever I want! I don’t have to pay taxes because the government does not bother about how many Bitcoins I own. But then wouldn’t anyone with even a fraction of a brain be doing this? And why would anyone want to work anymore? After all the value of bitcoins is only going to increase! And if nobody wants to work then how will we manufacture goods? Who would be willing to provide services? Who will stand behind the coffee shop counter to serve

alternative mode of payment for goods. I imagine two different scenarios unfolding through this mania. One, would be when every one would be paying for everything in Bitcoins. Imagine going

to a coffee shop, flashing your mobile QR code at a device and completing the transaction in a matter of seconds. No pulling out cash, no swiping cards, no hassles. Alternatively, it can co-exist with the

BOLLYW(100)D Crores ‘Bollywood is one place where business and emotions go hand in hand’

T

he cinema hall or the movie theatre, as most people like to call it now, has become a very important part of our lives. Accommodating all, from toddlers to the elderly, the cinema theatre serves people drama, suspense, action, comedy, with the perfect seasoning of refreshments.

It is one place where business and emotions go hand in hand. Bollywood, which once held no virtue and was not recognized by most countries, has now completed a hundred years. This industry began with a simple idea; the need to tell stories. Over these hundred years we have seen this industry grow rapidly. We started off with a silent film called Raja Harishchandra, a 50 minute film, which was scripted, directed and produced by the father of Indian cinema, Dhundiray Govind Phalke. Since then the movies have become longer and the numbers on the cheques that the producers receive, larger. The past decade, especially, has been a turning point for the Indian film industry, during which the 100 Crore benchmark was set. ‘Ghajini’ was the first movie to cross the hundred crore mark in 2008 and since then there has been no looking back. Now in 2013, every second

HOMOECONOMICUS

film crosses the hundred crore mark but a lot of critics have questioned this, they believe it is the result of a hike in ticket prices. At one point, the price of tickets in the city was twenty rupees and until recently it was a hundred and fifty rupees but now a middle class man spends around seven to ten percent of his annual income at the movies.

In fact, Siddhart Roy Kapur from UTV Motion Pictures said, “The two major distributors to revenue growth are higher average ticket prices and broader theatrical distribution.”3 But a few people have different views on the same. According to Apoorva Mehta Chief Operating Officer of Dharma Productions, a film crossing the gross collection of hundred crores indicates that the film is for every kind of audience and a paan wala would also enjoy it. “A hundred crore figure is really an indication of the growth in the business itself. In equal measure, it reflects the power of a film having a pan-India appeal.” she says. One man’s loss has always been another man’s gain. For some, movies are expenditure while for

available currency. After all it is its mass acceptance that would decide its future. Whether it becomes a precious commodity like gold or a regular metal remains to be seen. In the meanwhile enjoy the uphill ride till the bubble bursts.

1. The original Bitcoin protocol design is credited to

Satoshi Nakamoto, a pseudonymous cover, which is Japanese means “to think clearly inside the foundation.”

-Coins, Jazz and Mines

(Source: http://commons.wikimedia.org/wiki/File:Bitcoincoins.jpg, Author:Casascius)

others, an investment. For example, Madhur Bhandarkar’s film ‘Heroine’, a twenty crore film had an investor, a small venture capital firm called Cinema Capital. High ground Enterprises, Magus Entertainment and Springboard Ventures are among the names who are popularly known to have emerged as financial saviours of an industry long dependent on moneylenders, who charged exorbitant rates and often used strong-arm tactics to get their money back.

For a very long time the industry got its investments from either ruthless money lenders, who would finance films by charging annual interest rates up to 40% on loans. As a veteran director turned producer recalls, a single day’s delay in repayment could have thugs armed with sticks and guns at one’s door. Underworld investors were the other source of capital. Due to these illegal investors, the profits never made the right people rich. Most of the profits were used for illegal purposes like smuggling, terrorism etc. In 2001, the Central Bureau of Investigation seized all the prints of the movie “Chori Chori Chupke Chupke” after the movie was found to be funded by the members of the Mumbai underworld. Now, filmmakers are allowed to borrow money

VOLUME

1,

ISSUE

PAGE

1

(Source: http://commons.wikimedia.org/wiki/ File:Main_Krishna_Hoon_02.jpg, Author: http:// www.bollywoodhungama.com)

from banks and other financial institutions. After the industry was given this status by the government in 2001, there has been a 17% increase in viewership- in each of the large format releases; the collection in tier-2 and tier-3 towns is 20%. These are indeed positive signs, which exscind the scope for corruption in the

business of entertainment. Presently, Bollywood releases over 1,200 films a year, with a reported accumulative audience of 3 billion. Hollywood producers are courting Indian producers. Reliance MediaWorks is a home-grown company that is increasingly making waves abroad with international tie-ups 4 This means, greater the investment greater the profit. The industry has learnt a lot with the passage of time.

India, being an emerging economy could employ this ‘Profit Making Industry’ in the best suited manner, to the benefit of the nation. But we have come a long way and now it seems as if Bollywood’s golden period has just begun and is sure to last for the years to come.

11

References 1. http://archive.is/biwO 2. Economic Times (Feb 2012) 3. www.filmbug.com 4.Business Standard 5. Chori Chori Chupke Chupke (2001) – Wikipedia

Devanshi

Shah

Devanshi Shah is a student in Jai Hind College, pursuing BA. Shah, who also teaches at the Jehangir School of Speech and Drama, hopes to bring in a little entertainment in economics through her creative insights on the subject.

I

ndia is one of the fastest growing economies in the world and still continues to perform poorly on health indicators. On one side, we have some of the world’s richest persons residing in India, and on the other, we have people who are not able to get medical help even for life threatening but easily remediable diseases. Access to good health care services is concentrated among the relatively better-off sections of the society.

India is committed to achieve the Millennium Development Goals (MDGs).

However, the progress towards achieving these goals is rather slow.

For instance, according to the Sample Registration System figures, maternal mortality ratio for India is estimated to be 212 for period 2007-09. This rate is too low as compared to the MDGs target of 109 which is to be achieved

Health Policy in India Present and Way Forward

by the year 2015.

The questions before economists and the policy makers are: How do we improve this situation? How do we make health care access universal?

Recently, the Indian government has initiated a number of programmes to increase the coverage of health care services. The National Rural Health Mission (NRHM) was introduced in 2005. The government has identified 18 high focus states, which are performing poorly on health indicators.

These states were given special assistance. Under the umbrella of NRHM, various schemes were introduced, such as Janani Suraksha Yojana for

safe motherhood, mobile medical units for rural areas, and Accredited Social Health Activist (ASHA) scheme for dissemination of information.

The government has also started insurance schemes mainly for the poor, namely, Rashtriya Swasthya BimaYojana (RSBY). Under RSBY, poor households are provided smartcards which may be used at the enlisted hospitals to get health care.

Early evidence suggests that the above schemes have increased the coverage of health care services. However, there still is a high correlation between income/education and utilization of health care facili-

Guest Author

While most of us only manage to verbalize ‘’How are you doing?'' on meeting a student of Economics, in reality all we'd like to know is, ''WHAT are you going E– Kaun? to be doing? and HOW?'' Which one does blurt out after the former anyway.

Sparing readers of this magazine the awkward look at the impertinence of their prying question, we’ve published a survey based on primary data that provides an insight into academic life of future homoeconomici. Our research team has thus analysed the social, political and economic psyche of the youth. n addition, it has tried to capture information about individual choices of future plans, ted-talks etc. to give prospective economic students, information ready in a platter. So turn the page, beat the looks and pry away.

Guest Author

PAGE

12

ties. Utilization of even basic health care services, such as maternal and child care is determined largely by income and educational status of families.

The problem seems to be with the government’s focus on the supply side. If we want to increase the utilization of health care services and improve health indicators, we have to understand the demand side factors as well. Studies suggest that the opportunity cost of time is an important factor restricting use of health care.

For instance, when government provides health insurance to the poor, it does not cover the costs of lost wages. This restricts the access to health care, as people are not willing to sacrifice a day’s wage for getting medical care. Understanding household behavior and decision making is pertinent for health policy formulation.There is also a need to provide information about health care and spread awareness among people.

Overall, India is progressing towards better health care access.

To achieve universal health coverage and improve health indicators, we need to travel a long road. Well-formulated

Health instructor at slum (Source: http://upload.wikimedia.org/wikipedia/en/1/15/AIIMS_slum.jpg, Author: Hellfire20)

and implemented policies may make the journey faster.

Importantly, there is a need to look at the demand-side factors along with the supply-side considerations.

References: 1. http://censusindia.gov.in/Vital_Statistics/ SRS/Sample_Registration_System.aspx 2. http://www.rsby.gov.in/

Dr. Rama Pal

Rama Pal is an Assistant Professor at the Department of Humanities and Social Sciences, IITBombay. She completed her Bachelors in economics and statistics from Ramnarain Ruia College, Mumbai. She did her Masters in economics from the University of Mumbai and Ph.D. from Indira Gandhi Institute of Development Research. Her Ph.D. thesis is in the area of health economics.

Currently, she is working on health inequality, inclusive growth and development, and child labour.

Lessons from a Neighbour

T

he end of 2013 comes near and the quest for power beginswith UPA and NDA or more precisely Rahul Gandhi and Narendra Modi battling for the zeniththe prime ministerial power and authority. Both parties are leaving no stone unturned to prove their supremacy and to highlight the dark shades of the opposition. But amidst all this chaos the worst affected is the common man. While both the parties

HOMOECONOMICUS

are trying to lure the people by showcasing their achievements the big question is: what did both of them really do for India’s progress? And indeed how far have they taken our country through their noble acts?

The reason why I wish to elaborate on this is the depressing lack of transparency in our entire democratic setup. Let me take you to a different yet significantly relevant story after which

we will return to this question.

Let’s go back to the period of 19971998. It was the time when a strong wave of economic depression had hit the East-Asian countries. Some countries recovered from it, and some like Japan are still struggling. But there was one country which was least affected by the recession. This was the same country which was socio-economically backward in the 1970’s as compared to India.

PAGE

13

strongly supported by all the political representatives and not only by the PM. I wonder when the day will dawn in India when Mr. Modi, Mr. Singh and Mr. R. Gandhi will all agree to the same project/ venture!

Coming back to ’VISION 2020’ with the successful implementation of all the underlying goals the desired result was naturally achieved, and that too, much earlier than expected. But the Malaysian government was not satisfied, it wanted more. For them this was just the beginning. Now this is against the case of India where a small success by the government is followed by showers of appreciation bestowed on them as if it was the end and that India already was a superpower. Where has the hunger to do something earnestly for the hungry gone?

Worth Replication (Source: http://upload.wikimedia.org/wikipedia/commons/b/b1/Malaysia_KL_1.JPG, Author: Shahnoor Habib Munmun)

There was no unity among the people.

Cities were under-developed. Riots were a common sight. Keeping in mind this scenario, it was indeed surprising or rather shocking that this country withstood firmly in the tempest of recession while all other countries were economically destroyed.

So how was the impossible made possible? First of all let me tell you the name of this super-natural country. It’s none other than Malaysia! And how did they achieve this? The lion’s share here goes to the determined, disciplined and positive-spirited Malaysian government. The first step which it took was to bring together all the people and to ensure a peaceful riotfree country. The second founding step was taken by the then Prime Minister Dr. Mahathir Mohammed .He framed the goals for an all round development of Malaysia and accordingly stated the 9 challenges faced

by Malaysia which had to be conquered.

An Initiative Unique For this he started the programme named ‘VISION 2020’. Neither was it restricted to pages or luring speeches, nor was it an unrealistic dream of becoming a superpower.

Rather it showed the far-sightedness of the government and was implemented to the core. Under this, concrete steps were taken to ensure development in all fields, including, agriculture, business, roads, transportation, education, energy, urbanization, etc. such that every Malaysian would be self sufficient and happy.

Accordingly millions of dollars were spent from the government treasury. Let me highlight the most important fact here; not even a single dollar went illegally in the pockets of a single person assigned the responsibility of implementing the programme be it a low rank labour to the topmost ranked official (Cue for a round of applause please). The reason why ‘VISION 2020’ turned out to be successful was the strict supervision of the implementations on part of the Prime Minister. His basic belief was-‘if there are potholes in the road then it is not a road’. If the construction is undertaken by bribing even a single official then that contract is illegal and liable to strict punishment’. He believed that true peace and prosperity is what the people should experience and not what the government portrays in its speeches.

As for Malaysia, by then Mr. Mahathir had retired and Mr. Badawi had taken his place.

At that time Mr. Nazib Razak was the deputy Prime Minister who later became the Prime Minister in 2009. It is wisely said that you should learn from your experiences and this is what exactly Mr. Razak did. He not only continued with ‘VISION 2020’ but also went a step ahead and started a complementary programme named PEMANDU with the help of cabinet minister Mr. D. I. Jala.

Intervention #2 PEMANDU or Performance Management and Delivery Unit was based on two main objectives viz. to ensure the implementation of the development programmes for all pervasive development and to support government transformation programme and economic transformation programme.

These programmes involved the participation of all the Malaysians from experts to laymen. When was the last time that all the citizens here were actively involved in policy implementation and could critically examine them?

PEMANDU brought about great changes in the country. The major factor in this programme was that all the authorities undertook its keen supervision to ensure proper implementation and growth. They knew that it would be impossible to become a developed country without all round socio -economic development. For this entry point projects and business opportunities And the most important fact-of-it-all were decided. To make PEMANDU sucwas that these principles were cessful, responsible delegations were

VOLUME

1,

ISSUE

1

made. With all these lucrative projects the results achieved were coveted.

The GTP and private investments resulted in 23% increase in the output.

29, 15, 000 new job opportunities were created. This has in turn attracted other countries like Russia, Japan, etc who have also given a nod to the concept of PEMANDU. Even Singapore and Korea have adopted these programmes to bring about welfare and prosperity of all its citizens.

Scaling up Indeed Malaysia has exemplified the amount of progress a country can achieve with the willingness to change and with the successful implementation of the development programmes.

PEMANDU is a programme which ensures large involvement of citizens to have a transparent progressive and revolutionary political system.

What does this example teach us? It is not necessary to undertake Morchas

Give it a thought

HOMOECONOMICUS

PAGE

and sit on Anshan when you want to bring about positive changes in your country and this is what the government should learn. I am not criticizing Anna Hazare here but the fact is that he undertook the efforts and trouble to bring Jan Lokpal against corruption-something which should have been easily embraced by the government especially with 83% corruption prevailing in the country! ‘Truth alone prevails’but after so much of resistance and oppression? Or should we say this happens only in India?

Programmes like PEMANDU, if adopted with true determination and discipline can benefit generations altogether. It’s true that Malaysia too has its own set of problems. There is minimal corruption.

But still the country is marching ahead on the path of progress, with a firm determination. Now that’s something worth learning from.

14

References: 1.

www.pemandu.gov.my

2.

http://www.pmo.gov.my/?

Puja Vijesh Parmar Puja Vijesh Parmar, studies in F.Y.B.A, Ramnarain Ruia College, Matunga.

She has taken Economics as her subject and wishes to pursue a career in it. Her free time is sapped by voracious reading, and her extreme desire to collect information of various phenomena that catches her eye. What she enjoys in Economics is its relevance to the real world and clear demonstration of its working and nuances. She wishes to bring about a change in the present Indian system especially the education system, such that there will be an allpervasive development of all Indians by which India will no longer remain a rich land of the poor!

PAGE

15

Breaking into Gringotts When I was around 10 years old, my father and I had this tradition. Every week, he would give me projects which were both educational and fun. My favourite one was when he had asked me to describe the Harry Potter universe. So, roughly 8 years later, when I started learning economics, I decided to see if it was possible to chalk out the economy of the wearing world.

It is a well-known fact among all economics students that economics is the science of scarcity. So, in order for there to be an “economy”, there have to be some things that wizards cannot create out of thin air. In Harry Potter and the Deathly Hallows, Hermione mentions ‘Gamp’s Five Laws of Transfiguration’.

These are a list of five things that are impossible to create.

Although food is the only one mentioned my best guess is that money is one of these laws as well since poor wizards very much exist. Moreover, there is no mention of any wizard farmers in the series which leads me to believe that there is trade between the muggle and wizarding worlds.

Exchanging Systems As there is trade between the two worlds, there has to be an exchange rate. J K Rowling stated in a 2001 interview that the exchange rate varies. How it changes is still not clear. The conversion between muggle currency and wizarding currency must be pretty common as muggle borns pay for their tuition each year in Galleons.

Banking on one

(Source: http://commons.wikimedia.org/wiki/File:Gringotts_Wizarding_Bank.jpg?uselang=en-

The main economic entity in Britain is the Gringotts bank in Diagon Alley which is run by goblins .It has hundreds of thousands of vaults much like its human counterpart in Switzerland. In the Philosopher’s stone, Hagrid tells Harry that it is the only bank. Although, I like to believe that every country has its own bank and currency.

Public Sector?

The biggest employer in the wizarding world seems to be the ministry of magic. Everyone in the Order of the Phoenix is in the ministry, even Harry himself aspires to join the ministry as an Auror (Dark wizard fighter) when he grows up. It is really not clear how the ministry pays for its thousands of employees as there is no mention of taxes in the books. Even if taxes existed, there is not enough economic activity in the wizarding world for there to be a lot of taxation. Another major employer is the Hogwarts School of Witchcraft and Wiz-

ardry. Job opportunities are not plenty and the only other career options include Journalists, Shopkeepers or Quidditch players. Slavery is a highlight of the series which is seen in the form of house elves. Every rich family has a house elf who is made to do whatever work his master wants him to. House elves are not paid for their jobs and are exploited beyond belief.

What’s name?

your

father’s

Just like the Muggle world, witches and wizards can be rich (the Blacks) or poor (the Weasleys), employed (Dumbledore) or unemployed (Molly Weasley).

However, unlike the real world, wealth does not depend on your skill or magical abilities but is passed on from generation to generation indicating a strong class system.

I know that J K Rowling wasn’t trying to write an eco-

Rigged Reviews

Existence of Trade

Get your late-est (economic) reviews on Movies, Books, Public Lectures and People .

Every economy has 3 prerequisites – Scarcity, Trade and Money. Scarcity gives rise to the paradox of value and makes diamonds more expensive than water. Trade leads to economic development as it gives people things they can’t produce and money gives people the ability to purchase.

VOLUME

1,

ISSUE

1

PAGE

Galleons: Counting on!

Wizarding currency has three types of coins: Galleons, Sickles and Knuts. Their conversion rate is not based on the decimal system as: 1 Galleon = 17 Sickles = 493 Knuts. In ‘Quidditch through the Ages’, it was said that 164 Knuts was equivalent to one pound. Therefore, by today’s rate, One Rupee is apnomics book but I think that it’s really funny how the principles of economics pop up in the strangest of places.

Modiomics in 2014?

Like him..hate him..love him..snub him..but you can simply not ignore him! are anything to go by! You cannot have a feather-weight contestant take on a heavyweight, can you? That is against the rules of fairness.

Let us dwell on what makes the NaMo factor so formidable and a force to reckon with. First and foremost, let’s see what his opponents say. His bête noire, the Congress

Guest Author

While 2014 is touted as a clash of titans – on one hand Rahul Gandhi of the Congress and Narendra Modi of the BJP, there are many like me who perhaps believe that the battle looks lop-sided and there is only one winner – and no prizes to guess who it is. In fact, there is no competition if the recent state election results

(Source: http://commons.wikimedia.org/wiki/File:Narendramodi.jpg, Author: Norbert Schiller)

HOMOECONOMICUS

16

Saawani Rajyadaksha The author is a first year student of economics. She is a self-confessed bookworm and is addicted to food!

through its Prime Minister and the Finance Minister have already acknowledged that the challenge the man poses is serious. After all he did become Gujarat Chief Minister for the fourth consecutive term. This certainly speaks volumes of his leadership abilities. His connect with the masses and the huge fan base is perhaps unprecedented for a politician in today`s times when scams and credibility have damaged the political class across India When did you last hear about the public paying to attend election rallies? In fact, if memory serves me well, I think people were bundled in public transport, vans, trucks and even bullock carts by local units of political parties when rallies in their constituencies were held by their `High Command`. Everyone senses that a change is imminent in the political system and there is a whiff of freshness about it all around.

The Gujarat model of governance has impressed one and all, even the most ardent critics of Narendra Modi and the BJP. We need not read newspapers or follow the media on this; we can simply take a tour of the state and observe the reality.

Infrastructure, ports, highways, uninterrupted electricity, agriculture, commerce seem to be in their prime. I have heard (from credible sources) of a number of real estate developers and other businessmen either having shifted base to Gujarat or wanting to do so. Strong employment numbers in the state and increase in agricultural output are

1,

ISSUE

1

some significant highlights of the state`s achievements. Barren, arid and infertile lands have been transformed into rich agriculture lands through irrigation projects. Per capita income is on the rise.

The bureaucracy in Gujarat is on a tight leash. The babu culture is not tolerated and expeditious, hassle-free, single window clearance systems for Government approvals inspire confidence and attract investment into the state.

A case in point is the Tata Motors plant in Gujarat. Tata Motors already has a massive facility in Pune. When Singur failed to take off, relocating the facility to Pune perhaps was possible.

But the Tatas chose Gujarat. Maruti Suzuki, the country`s leading automaker is also firming up plans to setup a new plant in the state. Certainly, the Gujarat government has won the confidence of the industry.

What the Indian Government needs is emphatic, pragmatic and decisive policy-making. I think even the die-hard Manmohan Singh fan would concede that he has been anything but decisive. The alibi of coalition compulsions in governance has drained the exchequer immensely and the policy paralysis has shattered investor confidence big time. Scam after scam has eroded public confidence and has subject the country to ridicule even overseas. The Commonwealth Games mismanagement is a case in point.

Leading broking houses like CLSA have also put out reports highlighting that a new Government led by Narendra Modi is the best thing that could happen post-elections. It is rare for foreign broking firms to comment on India`s political system and elections

PAGE

but such is the track record of Narendra Modi, that it has got into the reports of these widely -followed and perceivably credible reports of MNC broking firms.

Narendra Modi, has also received a lot of criticism for his style of functioning and the development numbers he speaks…nay boasts of.

More recently, his history gaffes at election speeches have raised question marks about how erudite the man really is. But let me tell you, he is also human. Which one of us does not have shortcomings? How many of us can rise to the occasion and emerge victoriously election after election. Sure you can fool the electorate sometimes, but not every time, as the Delhi elections have proved.

The Gujarat riots seems to be the perennial whipping cane for Narendra Modi`s detractors. It is complex to try and pin the blame on one man for the unfortunate tragedy that would remain a blemish on the secular credentials of our country.

The courts have not indicted him.

So let’s leave it at that. The man has delivered despite these challenges; Gujarat has not witnessed any serious communal riots post-Godhra.

The only thing that in my opinion could possible upstage the BJP-led NDA sweep of the national elections this time around is perhaps the AAP. Remember, they fought only in Delhi this time and though the BJP did emerge as the single largest party there they are unable to form a Government as they do not have the majority. Can the AAP replicate

Wall street Never Sleeps

T

he wall of shares crumbled and the company was knocked out on the street! Isn’t it humorous to know how money can direct the episodes in our life? Economic cycles revolve around the oscillating wheel of money but aren’t our lives marching

on the same street too? This movie has depicted everything beginning with the vicious acts of insider trading, rumors that annihilated a multimillion dollar company and collapse of stocks and economic turndown where money, vanity and revenge have pulled

17

this success at the national level? It does potentially wield the power to dent the chances of the BJP-led NDA. There will always be critics and there will always be failures to speak about.

There will always be detractors and most of these critics who pen such scathing criticism have rarely been in the hot-seats where Narendra Modi has delivered very handsomely, repeatedly. It is easy to criticize when you do not do the job yourself. And this time around, one thing that

Guest Author

VOLUME

Mukesh Kuwad A Chartered Accountant by qualification and a trainer by profession. Possess over 10 years of post-qualification experience in capital markets.

Worked with the Bombay Stock Exchange in the areas of compliance and surveillance and as an Investment banking analyst with Citigroup in Mumbai. Currently, designated as Centre Director - Bombay Stock Exchange training centre in Pune. You can contact me at bseinstitutepune@gmail.com .

would not be easy for the critics to write-off is the NaMo factor.

Would it?

the trigger on the one true thing that we crave - relationships. Although the climax did show that the characters had reinstated their senses and chose family over money. In reality, however, who knows how long that virtue would sustain in a moneyseeking world like ours. Overall movie was proficient, though it did lack persistence; one had to really think deep into the actions to link the scenarios. All the capital invested

PAGE

in movie direction, visual effects, soundtrack, marketing, and cinematography was squared off but it couldn’t beat the eminence of its prequel Wall Street 1.

Many critical reviews suggested that Gordon Gekko (played by Michael Douglas) was the only diva worth watching in the movie while the critical elements viz. plot, cast, storyline and its filming were wearisome and the end was very obvious. Upon digging further I learnt that Allan Loeb(played by Shia Labeouf), who is a licensed stock broker, had been selected to write the script. Given the good script-writing, numerous twists and turns, action, distinctive economic crisis and liveliness of the characters were anticipated from director Oliver Stone.

However, the movie did stay unbiased to its name and we can reflect on the phrase “money never sleeps” by understanding that money works like time and our thoughts circulate in accordance. The latent message in the movie is showcased through the aid provided by the proprietary trader, Shia

LaBeouf to the fusion research project which brings out the changing outlook toward novel technologies.

To point out a different note on this movie, we can see how profitably it had earned nine million dollars at the box office on the very first day and its budget being comparatively higher than that of its prequel given the gap in the time frame it had been one of the best openings of a Stone film. However, gradually due to lack of public approval it dropped its place at the box office making a gross of $134.7 million worldwide and suffered a great loss due to its cut off of seven hundred and ninety screens in the fourth week. This is despite Oliver stone’s commendable marketing effort. For instance the cast members had presided over the NASDAQ (stock market) opening bell.

Personally I enjoyed the movie as it was informative on the different investment tactics played out in the business world. Nevertheless, a little romance in the midst of the lives drenched in the economic turmoil was the truly captivating part of the movie.

The Inner-way to Economic Competence Sadhguru Jaggi Vasudev is one of the modern patrons of this path to Life and Business, which surprisingly, remains less travelled. A yogi, a humanitarian, a visionary – Sadhguru is a mystic who comes to be so from evolving his inner-self. An erstwhile Businessman from Mysore, Sadhguru was inclined towards ‘The greater science of human well

HOMOECONOMICUS

18

(Source: http://commons.wikimedia.org/wiki/ File:Wall_Street_2_Cannes_ad.jpg, Author: jamiejohndavis)

Amruta Bagwe When the world asks why, I say ask not? I am a kind of person who loves to experience novel things and have an eye for different perspectives.

I am a lover of music, dance, guitar, poetry writing, photography, and reading and have keen interest in economics.

Acclivity in the number of institutes offering management studies has brought about the trend of ‘MBA culture’ – A trend that indicates the growing demand for managerial economics and also, the society’s efforts towards making better Entrepreneurs. Yet the very question of its applicability for the good remains unanswered. Well, applicability lies in the realm of the occult!

being”, from a very tender age.

He started the Isha Yoga Centre in 1992 at the foothills of the Vellangiri Mountains in Coimbatore. The foundation undertakes cross country social and community based developmental programmes that have earned it a special consultative status with the Economic and Social Council of the United Nations1. Unlike his contempo-

raries, Sadhguru does not encourage the making of a different world. He says “what's the point of creating a world of your own, if it only gives isolation”.

Leadership – In Conversation with the Mystic “A leader is a solution. He expands by embrace and not by conquest.” Sadhguru speaks extensively on able leadership and inclusive entrepreneurship in this series. Here,

VOLUME

1,

ISSUE

1

he contemplates with the likes of K. V. Kammath , Sh ekar Kap u r, Dr. Jayprakash Narayan and many more. A leader, according to him is someone who can see something that others cannot. An able leader: 1. Pays attention to the minute details of his work 2. Works on his competence, rather than his competition His thought clearly states that, leadership should not be the intent but, the consequence. It is a fruit, a sweet one if borne consciously with consistent and careful efforts. He further adds that the modern day leader is essayed by the notion of wanting to be Special, which is a ‘dis-ease’ that brings him under the constant radar of competitiveness. However, it is only when he is out of competition that he is able to look at himself BETTER. ”To play a game well, isn’t clarity the requisite rather than the second guessing of others in the game?”

The Business of Businesses: Insight into the DNA of Success “Whether you manufacture a safety pin, a computer or a spaceship, or you teach people how to meditate, there is only one business in the world: human wellbeing.” Initiated in the year 2012, Sadhguru through this programme intended to provide emerging entrepreneurs mechanisms to scale up their economic activity. He accomplished this by taking on board eminent personalities of the corporate and economic world such as, Harsh Mariwala, Jeby Cherian, Dr. Ram Charan, Rama Bijapurkar, to envisage the path ahead for the new-age corporate enthusiasts.

“The world at large has attached a lot of importance to commercial activity”.

Sadhguru professes – “people tend to forget that commerce is made to service people”.Sadhguru articulates, “As long as business leaders remain aware of the fact and that human wellbeing is the only purpose of doing business, business is fine”1. Sadhguru reflects

PAGE

(Source: http://commons.wikimedia.org/wiki/ File:Jaggi_Vasudev15.jpg Author: Isha Foundation)

that only if a business has taken 10 conscious steps, does the 11th become apparent.

The Way Ahead: Through the Mystical Eye “If you want to function to your full potential, you have to see that there are no inner issues anymore.”

In this series of talks, Sadhguru speaks of the relevance of inner well-being in ensuring economic and social welfare at large, also notifying us about the very nature of success.

Sadhguru discerns – the present economic process is such that if we fail, we will be depressed; if we succeed, we will be dammed. If success is seen as enjoying something what others don’t have, it is a sickness.

Success should not be obstructive.

Development of Human resource through health and education should take a front foot in order to fulfil the dearth of employable and capable Human Resource, which is as big a challenge as market base

19

expansion. While the individual no longer wants to be ‘dependent’ on the charity of others but wants to dynamically participate in the economic prosperity. It is yet to be seen how the corporation and human potential, both of which come armed with certain capabilities strike a balance for the creation of a productive enterprise2 Mind-fully learnt Time and again many minds like and unlike Sadhguru have risen to teach the masses, lessons of time. Novel ideas that ameliorate living are always welcome. Minds that dare to think laterally are the ones who confront their potential within. And so, the basic idea of learning economics (in my opinion) should be the creation of a rational, logical and scientific aptitude; to enhance oneself to accomplish all possibilities of life through the virtue of this great multi-dimensional field of action – Economics! Indeed it is LIF'e'CONOMICS! Special Thanks To S. Kailasji!

References 1.en.wikipedia.org/wiki/Jaggi_Vasudev 2.http://sadhguru.org/atoz/b/business/ 3.Youtube Channel of Isha Foundation: http://www.youtube.com/channel/ UCgaiWfiix1zaQS6Mn5SIw2g 4.Youtube Channel of Sadhguru: http:// www.youtube.com/channel/ UCcYzLCs3zrQIBVHYA1sK2sw 5.www.sadhguru.org 6.www.ishafoundation.org

.

- SamPurnaNand

PAGE

20

The Rise of the Dove1

(Source: http://commons.wikimedia.org/wiki/ File:Janet_yellen.jpg, Author: Federal Reserve)

Women and Economics This is a relation that has remained relatively unexplored until very recently. The dearth of women in this field so far is mysterious. It is only at the onset of the 21st century that women began to take the lead in this field. Janet Yellen is one such brave lady.

Janet Yellen has proved her worth not just as a woman economist but as a financial wizard. She has been nominated to chair the Federal Reserve in the United States of America, only the world’s larg-

Econsutras

Brigham Young’s famous quote - “You educate a man, you educate a man. You educate a woman, you educate a generation.” Reminds me of Janet Yellen, who has been bringing this point unsubtly to the forefront;

Today’s social structure has no place for chauvinism. Only when men and women can work together with equal powers and opportunities then the society can attain advancement and prosperity.

1

The term ‘DOVE’ used in the economic sense, refers to an economist who prefers low interest rate for encouraging economic growth.

References 1. http://en.wikipedia.org/wiki/Janet_Yellen 2. http://business.time.com/2013/11/14/janety e l l e n - i s- p o i s e d - t o - co m e - t h e - m o st important-person-on-earth/ 3. h t tp : / /w w w . te l e g r a p h . c o . u k /f i n a n c e / economics/10449727/11-things-you-shouldknow-about-Janet-Yellen.html 4. http://www.bloomberg.com/news/2013-1014/can-yellen-effect-attract-young-womento-economics-.html 5. http://www.bloomberg.com/video/what-arejanet-yellen-s-prioritiesa4VGEzDNRaCC2q0nLJToBw.html (video)

.

- Sharika Dhar

Sharika Dhar is a student of Ramnarian Ruia College (FYBA). She intends to major in Economics and Statistics.

Her hobbies include reading books and magazines, listening to music and watching anime. An earnest student of economics, she looks forward to mastering the violin and creating her unique style of instrumental music for her family. She aspires to meet Aung San Suu Kyi some day, whom she has been looking up to as her inspiration.

What we think of as a random compilation of our coupled thoughts and ideas, a result of long hours of discussion and argument!

The shunya (zero) was discovered by Aryabhatta, which was the first time (much debated) when man had attempted to define the idea of nothingness. An idea which seemingly scares people, even today! Around the same time the spherical nature of the earth was also realized. Circles, cycles and round projections surround us. Every-

HOMOECONOMICUS

est economy. Yellen will be the first woman to hold the position, one of both great power and responsibility Her Roots and Routes Yellen graduated from Brown University and acquired her Doctorate from Yale University. She was an assistant professor at Harvard University and has also taught at the London School of Economics. She is currently a Professor Emeritus at University of California and Berkeley’s Haas School of Business.

Married to the Nobel-prize winning economist George Akerlof (known for his study on information asymmetry) Yellen, her husband and their son (also a University Economics Professor) make you wonder the scope of “Household economics”.

Policies and Person She has been nicknamed as the ‘Dove’ of monetary policy given that her ideology is mostly concerned with increasing employment and improving economic growth. She is known as ‘Jobs Champion’ by many. She is also deemed to be excellent at predicting the economy. Janet Yellen is the face of tough women, who are intelligent, firm and powerful. Her achievements do nothing short of inspiring women to enter this field.

thing in the world follows a circular path or a circular cycle. The earth constitutes a larger, circular solar system. In this larger solar system we are at a stage in the cycle called the Dwaparyug1 and and are reproaching the Tretayug2. This explains our increasing propinquity to religious texts like the Mahabharatha, and its many interpre-

tations and modern day adaptations.

To do better, one always has to look back to reconsider the steps he/she has scaled. Usually, epics do this task of making us aware about our past. In this case however, it not only shows us how far we have reached but, with every

VOLUME

1,

ISSUE

1

PAGE

21

(Source: http://commons.wikimedia.org/wiki/File:Krishna_and_the_Pandava_Princes_battle_Demons.JPG, Author: Unknown)

story it makes us realize the immense possibility within ourselves to work for the better. It mirrors the potentialities of being human – good as well as bad. Which way to go? The choice is always ours!

Manager DraupadiOtherwise known for her curious sari length, Draupadi needs to be credited for her unique management model.

Women have always been silently accredited for their managerial skills. The same goes with Devi Draupadi, who quite successfully manages the Pandava(s) - the five qualities found in a man. With the righteous statesman Yudhishtir, she spends time discussing statecraft.

She was a true companion to Arjuna, equaling his stature of straightforwardness and contemplated on numerous disciplines from art to warfare. With the ever hungry Bhim she was indulgent with food and all praise for his strength. With Nakula she ensured his pride was fed while for Sahadeva- the wise, she mirrored his serenity.

In the Great Indian Novel, Tharoor (1989) gives this a temporal interpretation, seeing as how time is most important in modern times, in terms of value. The brothers work

out a meticulous schedule to ensure fair time with Draupadi, if one were to be interrupted at this prescribed time; the intruder would serve exile for a year. This iron clad routine ensures their safety from feuding over a loved one, which is he cause for the doom of many men!

Good/God Poverty?

Bhishma who took the oath of Brahmacharya in order to facilitate his father’s marriage to Satyavati, proves to be exemplary of austerity and discipline. In the Great Indian Novel Mahatma Gandhi has rightly been made analogous to Bhishma.

Both these men were celibate, austere, and led non- indulgent lives.

And both these men have been held in such high regard that it makes such a lifestyle desirable.

Gandhi’s self-denial was conveniently made fashionable by the Indian political class. The political narrative in the country has been constructed over the years, on this idea that little is enough. They used Gandhi’s following to manipulate peoples’ perception. Therefore, instead of striving to get out of poverty we took PRIDE in our ability to simulate it.

Interestingly, both these men de-

scend from privileged neighborhoods.

Their abstinence has garnered a lot of attention, books have been written on their experiments. Great prestige has been accorded to their self-denial, the poor are not availed of as much attention. The difference between poverty and abstinence is that the latter is a form of deprivation made by choice, and one can control the degree and extent of withdrawal.

Many of our khadi clad political leaders today attempt to fit this profile.

But is it really that? When two friends experimented with poverty, attempting to live on Rs 26 a day they discovered that hunger can make you angry, and that poverty does not allow you to realize even modest dreams.3 Decision Making : Devdutt Patnaik, noted mythologist and author speaks of the relevance of Mahabharata in making decisions.4 A decision in one situation may not bear the same results in the next.

Change is the constant law of nature and hence the percept of each decision changes with the context of the situation. In one of the events of the great epic, Vidura after being declared the PM of KuruRajya, questions the decision to appoint Dhritarashtra as the king de-

PAGE

22

spite being blind. There, he clarifies that as a younger brother it may not be in his dharma to raise such doubts but, as a statesman he has to look into all aspects of every decision taken and, that every position may come with a different rationale. In case of conflicting duties, one must turn to the requirement of the situation and hence prioritize his dharma.

Similarly, we see that success story of great businesses cannot be repeated. The Infy (Infosys) story was written for the good and is admired, for its precise timing. The founders- newly software engineers- in the tough times of the economy, dared to live their dream. Their first ten years in business were tough times preparing themselves for the upcoming challenges of liberalization. It was the competence of their decisions that made it the most successful enterprise of the liberalized economy. It was the intent and spontaneity of the decisions made then, that adds beauty to this story. This prasanga (scene or situation) also teaches us how an able decision maker is responsible to take every aspect into consideration before acting.

It is this very quality that makes his decision fruitful. No doubt, at times the scenario may be such that its consequences in the immediate future may not come as expected. Here it is necessary to change, and change with the needs of time, says Patnaik.

Desirable though not Thoughtful: India has been rated as one of the third world countries as per the modern notations, though it debatably remains one of the oldest civilizations. Abiding by the culture of ‘thanksgiving’ i.e. dakshina, our country at large has stood on

HOMOECONOMICUS

cross-roads in many occasions, where we feel forced to repay what seemingly are our ‘debts’. The gradual shift from agrarian economy to an industrialized one is an indication of the same. Gandhi had always been stern on his idea of self-sufficiency through agriculture - which is our main strength, which is also the basic model of Gandhian Economics.

However, India seems to have succumbed to the pressures of the developed nations and hence decided to act on the contrary by accepting the ways of the new age.

This reminds us vaguely of Eklavya who had to give away his thumb as a result of his sneak-a-peak learning from the Maharishi Dronacharya.

Undeniably both had their own moral reasons to justify the act.

Here we witness a paradox in the situation where, the western world stands for the Acharya, Eklavya portrays India and the dakshina is the Liberalization and industrialization of India’ economy. Our country like Eklavya, feels indebted to the west and international institutions for the developments it had brought about and hence continually chokes out giving dakshina to the demands made by them, at a great personal cost.

The paradox: neither of the three can be blamed…...only the repercussion persists, and India like Eklavya (archery) loses out on its most precious skill -agriculture.5 We are becoming exceedingly aware of the inseparability of the likes of economics, sociology, political science etc from moral philosophy.

Most humanities emerge from and diffuse into the larger sphere of moral philosophy. All of these sciences equip us to seek answers only to a certain point, beyond which we have to resort to moral philosophy.

The one text, considered to be an all-rounder takes us through the

past laurels of mankind, its present stature and the prospecting future is (debatably) the Mahabharata. The Mahabharata with its epics and the divine teachings of the Geeta takes us through the chronicles of Gods and men as seen through the eyes of the Maharishi VedVyasa.

1

As per the Indian Vedic science of astronomy, the Kaal chakra forms a leaf like structure. The Kali yuga supposedly began with the death of Lord Krishna in 3102 B.C. and comes to an end after 2592.

2 Now, in 2013 we are 69 years short of completing the Dwaparyugai.e by 2082 we will enter Treta Yuga and hence a step closer to the ultimate stageSattava Yuga.

3 Seehttp://www.thehindu.com/opinion/columns/ Harsh_Mander/barefoot-the-other-side-of-life/ article28 4 Se e h ttp :/ /w ww .y outub e.c om/ w atc h ? v=0TMQhifk6k&list=TLbf8r8U9oEQ8WAyxrQ D4ADs5EazHHajhX82340.ece 5 The authors are not against industrial, or secondary and tertiary sector development. The economic implications of agriculture have just been given more significance.

References 1. Tharoor, Shashi. The Great Indian Novel. Vikings Press, 1989

Purnima Nair & Vasudha Ramakrishna The authors use their similar regional languages as a tool to speak about troublesome individuals. In keeping the spirit of the Mahabharatha they keep debating its many ideas, often stopping at a deadlock. While one enquires into spirituality, the other comes up with distorted theories mostly related to promiscuity, much to the formers de-

PAGE

23

The Great Indian Bulge Tattletales

I

Discuss( Rant) out loud your loud apprehensions and thoughts about policy and socio -economic issues

their time and energy on.

Another such medium for impassioned youth to participate in helping their peers who are in need, is the National Service Scheme, a Government sponsored public service program. Aimed at having University students participate firsthand in nation building through community service, it is notable for being organized by the students themselves.

Doing your bit…

Being a part of the NSS through my college, I appreciate the effort and enthusi(Source: http://commons.wikimedia.org/wiki/File:Young_students,_Mumbai.jpg, Author: Bernard Gagnon) asm I have observed in my peers and myself in not only ndia’s demographic bulge towards what they see the understanding the problems within the ages of fifteen to nation lacks. but to be a part of the probforty five is a well-known lem solving process too. fact. In a time when India faces Ciao, Educazione!

Participation in voluntary scrutiny from all quarters in A common collateral dam- service and sharing of skills the global village, the demo- age of income disparity in in its varied implementations graphic dividend presents a India is the robbing of to serve a larger good, treacherous possibility .This is quality education from planted the seed of patriotbecause the nation may squan- economically vulnerable ism in my heart. The earlier der this opportune demo- communities. This results in sense of alienation from the graphic or it may use the a large section of the society Government and the comboom as a boon. If harnessed having no access to skill build- munity seemed to dissipate well, human capital is vital to ing tools that may elevate their upon having an altruistic endogenous growth in India. economic identity. Thus, they agenda. At times the The discordant reminders of remain trapped in the cycle of mere feeling of satisfacthe income disparity in India poverty and fail to realize their tion upon reaching out to could be seen as the motiva- full potential in the economic f e l l o w countrymen tion behind spasms of unrest growth of India. In spite of seems to be incentive among the masses in recent holistic economic develop- enough to repeat the years. Dissatisfaction with the ment frequently losing prioriti- behavior. The motto of implementation of public pol- sation to economic growth in “NOT ME, BUT YOU” resoicy, coupled with corruption Government policy, some rays nates with the volunteers as among the ranks, adds fuel to of hope do shine. Public- pri- they grow invested in the a feeling of disconnect be- vate partnerships such as the aim of the NSS. tween the Government and its National Skill Development In my time as a member of people. Such conditions have Corporation (NSDC), aim at the NSS I have spent tens of witnessed growing numbers in bridging the distance between hours teaching children in a proactive youth that attempt the demand and supply of municipal school. The school to uplift their lesser equipped skills. is in a Public-Private Partnercounterparts through the Further, initiatives such as Ro- ship with an NGO. The sharing of skills and knowl- taract Clubs and programs NGO provides the school edge. Volunteer programs for taken up by NGOs (Non- with teachers that thus imthe urban youth have grown Government Organizations) part English medium educapopular, as they offer the rest- unite youngsters with an appe- tion to the students of priless rising generation to act tite to make a difference and mary and middle school. The offer them an outlet to focus importance of English as a

VOLUME

1,

ISSUE

1

functional language in the 21st century cannot be stressed enough. Keeping this urgency in mind, the Akanksha Foundation, the NGO in question, provides these young minds with a thorough English medium education that aligns with the curriculum of the Maharashtra State Board of Secondary

Though the glass may always appear half empty to some, one finds hope in the belief that there are honest Indians working hard to change circumstances

and Higher Secondary Education (MSBSHSE). Perhaps what is more remarkable is the mindset of the members of the Akanksha Foundation that

In the ballot box

HOMOECONOMICUS

PAGE

24

strongly believe that every child in India deserves quality education irrespective of which income group s/he belongs to.

less vulnerable to the malicious propaganda of exploitation.

Not a lost cause…

It appears that India’s skewed economic development has negatively affected a generation of low-income youth. They dealt a raw deal by the policy makers and governing bodies.

In light of such conditions prevalent in India, there has also been positive change brought about by willing civilians themselves. While armchair cynics may indulge in idle criticism of the Indian economy, there exists a bevy of the ‘common men’ that find participation in progress more subjectively rewarding. The latter group operates feverishly to change India from within, make it self- sustainable and

for as long she can remember. She enjoys scrabble, movies, thunder and lighting.

Trouble is no stranger to her. Libraries are her place of worship. She is convinced that she is Philip Marlowe and can’t be told otherwise. When she’s not wisecracking, she can be found at any one of the several second-hand bookshops in South Mumbai.

Oorvi Ranadive has been eighteen

VOLUME

1,

ISSUE

1

PAGE

Partition of Vidarbha And how we can prevent it India is facing a tremendous problem of revolt from the people of backward and under-developed regions of certain states demanding to form an independent state of their own. The Khalistan movement in Punjab, Telangana movement in Andhra Pradesh, Gorkhaland, Vidarbha movement in Maharashtra, etc. are some major revolts across the country. This article emphasizes on similar issues in the Vidarbha region of the state of Maharashtra while trying to impart solutions for preventing the partition of Vidarbha from Maharashtra.

About Vidharbha Vidarbha (19404 sq km) region is located in the eastern part of Maharashtra. Famous for its oranges, this region comprises of 11 districts namely-Buldhana, Akola, Washim, Yavatmal, Wardha, Nagpur, Bhandara, Gondia, Chandrapur, Amravati and Gadchiroli. With a GDP growth of 6.7%, it is transforming itself into a centre of business and industries 1 .

However, despite its inherent strength, the region is not able to attain its full potential.

With an increase in the number of suicides by the farmers, the revolt for “Vidarbha as a state” increased tremendously. Declaration of Telangana as a possible separate state by the UPA government has added fuel to the fire. The issue of underdevelopment, which comes with its own reasons has always been attributed to such revolts. 65% of the population in Vidarbha is dependent on agriculture directly or indirectly.2 As cotton is the major crop, this region is vehemently dependent on rain.

However, it enjoys only 400-600 mm of rainfall. This leads to strapped results and loss of income, subsequently forcing farmers to take loans which they cannot possibly repay.

This leads to the suicide of poor farm-

ers followed by under-development of the region. Certain plans for development of the region by the government of Maharashtra have failed consistently. Although, “Advantage Vidarbha-2013” remains a promising project, given the literacy rate of 83.6%, the region constitutes 15.6% of Maharashtra’s GDP. Vidarbha has got 3000 hectares of industrial land and 90 industrial areas. It has adequate power generation capacity and total water reservoir capacity of 5607 mm3. It has 32.93% of total railway network of the state with Nagpur connecting all the parts of India. In the last 5 years, domestic passenger traffic of this area has increased by 14.8%

Staying together in Vidarbha.

Source: http://commons.wikimedia.org/wiki/ File:Just_married!.jpg, Author: Ganesh Damodkar

and international passenger traffic by 4.1% which makes this region valuable to Maharashtra. It has 4 out of 5 national parks in the state.

Competitive and aggressive policies of neighbouring state and cities have elevated Vidarbha’s position in textile industry value chain.

My Outlook According to me, here are certain development measures the government can take to prevent the partition of Vidarbha from Maharashtra....

25

 There must be at least 15-20% capital subsidy for new textile units which will attract industries (currently 10%).  On account of unstable rain, at least 1000 ha of land must be kept for textile zones.  Government must try to engage large amount of population in industries and not for agriculture.

Especially the young and unemployed talent within the region.  Bodies like MIHAN must transform the vacant region like Gadchiroli into a Cargo Hub so that it will develop the area and generate employment.  Strong and benefiting policies for Agro and food processing industries are needed.  There must be strong improvement in tourism policies because the region is well known as the “Tiger land” including 4 out of 5 national parks of the state.  Government must appoint bodies like CIDCO in other areas and not only in Nagpur.

CIDCO has done tremendous work and effected successful development in cities like Navi Mumbai.  Develop ment of more than 100 power plants in the region is essential.  Auto and auto ancillary industries need to be strengthened, as they are very weak.  There must be additional FSI (Floor space index) for IT/ITES units with 10% premium.  De velop men t of I T p arks . (currently there are only 3)  Need to setup a dedicated agency which provides a fillip to economic development.  District level panels are a must.  There must be single window clearance system for companies.  Industries to facilitate value added

VOLUME

1,

ISSUE

1

employment generation.  Certain policies for irrigation are a must. For e.g.- drip irrigation, construction of farm ponds, construction of series of check dams, expansion of micro irrigation system, supply of water lifting devices and lift irrigation.

All these plans need skilled labour which is lacking in Vidarbha. This happens due to migration of talents to the developed areas of the state and country. The government must try to give attractive wages to the sons of soil and must attract talent from all parts of India to overcome this problem.

However, I feel that the economic transformation of Vidarbha could take place provided the concerned stake holders come together to develop an integrated and cohesive approach to support the sectors/industries which can be potentially developed in Vidarbha.

PAGE 1

Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) is an airport project for Dr. Babasaheb Ambedkar International Airport, Nagpur. It is the biggest economic development project currently underway in India in terms of investments.

2 The City and Industrial Development Corporation of Maharashtra (CIDCO) is a city planning organization created by the Government of Maharashtra, India.

3 ITES - Information Technology Enabled Services include the wide variety of operations which exploit information technology for improving efficiency of an organization. India is the prime destination for the major companies of the world for outsourcing of IT Enabled services

HOMOECONOMICUS

ArticlesPublications/Documents/ Advantage-Vidarbha.pdf .

Raj Kamble: Currently studying in Ramnarain Ruia collegeFYBA. He aspires to work for the civil services exam and is preparing for the same.

References 1. h t t p : / / a d v a n t a g e v i d a r b h a .c om / demography/ 2. http://agricoop.nic.in/ 3. imagedefault/VIIDP.pdfhttp:// www.kpmg.com/IN/en/ IssuesAndInsights/

Digging Deep into our pockets If you have to pay increasingly more at a neighbourhood kirana store or at a swanky departmental store, chances are that you have been hit by inflation.

Concerns Inflation has become an ever-growing problem in our country but no one seems willing to address its causes.

Inflation simply means rise in prices.

This happens when demand for a commodity is greater than its supply. Inflation usually makes the prices go up far more quickly than devaluation brings them down. It makes the consumer end up with lower levels of disposable income resulting in making him sacrifice either on the quality or the quantity of his demand for a particular comodity. The only good news is you pay out less on your personal loans as inflation erodes the interest payment.

As customers fall short of cash, more customers prefer the use of credit cards. They end up taking personal loans to pay these credit card dues,

26

which finally results in a debt trap.

With inflation being on a high, most banks have increased interest rates on home loans by 1-2% for existing borrowers. Since most of the home loans are taken on a floating rate basis, the borrowers pay more in the form of EMIs (equal/Easy Monthly Installments) as compared to previous years. Petrol and diesel prices have also shot high making travel more expensive.

Causes In India, inflation is above the 9% mark from last year. This has greatly hit the budgets of salaried middle class in the country. Food and dairy products, which are dayto-day necessities, are rising at 1112%1. For a middle class person this constitutes almost 30-40% of his salary leaving him very less money for other activities and savings2. The savings have been affected largely. A considerable reduction in savings

caused by inflation might endanger economic growth.

It is ironic for a primary sector economy like India, to have high food inflation rates prevailing in the economy. Despite ample agricultural production, we are facing shortage of food-grains in the economy. The two major contributing factors for this purpose are  Hoarding by businessmen  Government policies If retail stores are allowed to hoard huge stock of commodities, then inflation is bound to rise. The economy will see scarcity of the necessities and the prices tend to rise steeply over the time. Hoarders are those people who hold back stock of goods in anticipation of large price change so as to make higher profits in future. Hoarders are usually big companies which have a large and expanded network spread throughout the country and also have large storage and warehouse facilities.

They store these goods so that commodities are in continuous supply in their retail outlets. Wholesale pur-

VOLUME

1,

ISSUE

1

PAGE

chases are made directly from the manufacturers and hoarded to create artificial scarcity in the economy. Reduction in hoarding practices would release the pressure on the prices of necessary goods. Strangely so, the government is unwilling to see this though it is right in front of its eyes.

It’s a cruel fact of inflation created by both businessmen and the government together.

The Government should set limits on

27

should clearly define the almost invisible line that distinguishes storage and hoarding. It should try to make the bulk of necessary goods available to the consumers. This would ensure lesser prices and greater food security to the citizens at large. So far there has been a single law that tries to combat hoarding practices in India. The Essential Commodities Act of 1955 aimed to bring hoarding under surveillance.

Although it is difficult to stop inflationary forces all of a sudden at a macroeconomic level, the Government should try and maintain the price of food-grains and vegetables within specific constant bands.

Though inflation today is viewed as an economic phenomenon only from the demand side, the supply side is equally contributing (Source: http://commons.wikimedia.org/wiki/ to the same. It’s a combination of File:Laad_bazaar_bangles.jpg, Author : David Boyk) both demand-pull and cost-push the stock that can be stored back and factors. Surveys conclude that infla-

tion in the Indian sub-continent can be attributed to the demand pull factors due to the growing population and the export-driven economy. Inflation thus needs to be tackled from both the sides with the aid of both monetary and fiscal policy.

References

Courtesans for Gods

time these Devadasis gained the role of revered, high class mistresses, where men were licensed to have sex with them with impunity. With the spread of the reformation movement in India, the Devadasi system was banned. The status of the Devadasis ultimately reached its nadir when they were banned as the reformation movement spread throughout India. The state of Karnataka outlawed the practice in 1982, but its practice is still large.

I

was once watching a Marathi movie ‘Jogwa’. It has the typical rural setting and I assumed that it would be the same old love story, where a girl from a higher caste falls in love with a boy from a lower caste; the parents object, and the couple elope followed by the usual happily ever after. But to my surprise this movie had a twist. The girl was a Devadasi and the boy a eunuch. Sounds pretty weird right?

The most intriguing part of the movie is the concept of a Devadasi. In Hinduism a Devadasi is a girl who is dedicated to the Goddess Yellama for the rest of her life. She has to sleep around with the men of the higher castes in her village. Sometimes, man loses his sense of morals when it comes to religion and sex.

The Devadasi system is practised widely in South India. When girls hit

puberty they are auctioned off to the highest bidder. Before their virginity is sold, the girls undergo an eleven day ‘purification process’ once they hit menstruation. Under the Devadasi system this marks the transition into womanhood. These girls are smeared with turmeric and sandalwood paste on their forehead as a part of the purification process.

The girls are then kept indoors, locked for a period of 11 days after which their virginity is up for grabs.

These girls are forbidden from marrying mere mortals.

However in retrospect, history treated these women with respect.

Sounds ironical right? During their heydays i.e. around the 16th-17th century, a Devadasi who enjoyed a high pedestal in society, performed dances for the deity, Yellama and used to take care of the temples precincts. But with the passage of

1.http://timesofindia.indiatimes.com/business/indiabusiness/August-retail-inflation-moderates-to-9-52/ articleshow/22530490.cms 2.http: //www.e con omi st. co m/bl ogs/ graphicdetail/2013/03/daily-chart-5

Shruti Shirhatti is presently pursuing her grad degree in Eco and Stats. She is also a student member of Institute of Actuaries of India, loves reading and discussing macroeconomic issues. She can be contacted through her email id shru11shirhatti@gmail.com for further discussions.

I came across various heart wrenching stories, but this one stood out .I came across an article published by the Guardian. One such story was of a Devadasi named Rupa. She was dedicated to the Goddess Yellama when she was around ten years old.

Her virginity was auctioned in the village. Her vagina was slashed with a razor blade by the man who was supposed to sleep with her for the first time. Since then she has been working as a prostitute and has been

tise of the Devadasi unequivocally and a marriage to a Devadasi before or after the commencement of the Act is valid. It does not prescribe a particular age limit of a Devadasi and hence a woman who is a Devadasi could be of any age.

However the bleak point of the act is lack of stringent punishment.

Section 5 states that any person who, after the commencement of this Act, performs, permits, takes part in, or abets the performance of any ceremony or Devadasis act for dedicating (Source: http://commons.wikimedia.org/wiki/File:Devadasi_1920s.JPG, Author: Bhadani) a woman as a Devadasi or any supporting her family. ceremony or act connected Since Devdasis had been dedicated to therewith shall on conviction be a deity, they would earn their living punishable with imprisonment of either by begging for alms or by being either description for a term which a part of gypsies or dance troupes. may extend to three years and with These gypsies would perform a fine which may extend to two tamashas, a kind of Marathi folk play. thousand rupees: However they earned peanuts in such One would be shocked that notdance troupes .It is to be noted that withstanding the prevalence of this they sold their bodies for free due to Devadasi Prohibition Act 1982 in religious purposes unlike a normal force, the ritual is practiced with prostitute who would charge per hour tremendous impunity. There has or by the minute. been only one conviction under the Subsequently these girls were Act. reduced to untouchables. They One of the prime reasons for this are touched only for sexual grati- low rate of conviction is the lack of fication. Very little has been done to evidence. More importantly, the pull out these women entrapped in Act does not address the burthis vicious circle. When religious den of proof. Burden of proof sanction is given to prostitution it is means to prove or disprove a fact. nothing but hell on earth.

Hence, the burden of proof, in such The Government of India has not en- a gruesome activity should lie on acted a central law banning the the accused. But unfortunately, Devadasi system. However the state of since the Act is silent on the burden Karnataka had passed the Devadasi of proof, by default it lies on the Prohibition Act 1982. It bans the prac- prosecution. Thus, very often the

HOMOECONOMICUS

accused is let of the hook if the prosecution fails to establish the guilt of the accused. In Indian law an accused is ‘presumed innocent unless proven guilty’. Hence minor legal aberrations can be a getaway for the accused to be let off the hook. This is also one of the prime reasons for the low rate of conviction, apart from lack of evidence.

Once these Devadasis are absorbed into the business, they are pushed into abject poverty and are treated as outcastes. They become victims of sexually transmitted diseases like AIDS, and syphilis .When they ‘retire’ they do not find acceptance in society. Prevalence of such macabre activity sometimes makes me feel whether India has stepped backwards in terms of progress. Although Art. 14 of the Constitution of India guarantees us the Right to Equality, can we, in the real sense of the term, equate a Devadasi as an equal to us? Can we uproot her from the evil which she was trapped in, so that she can live a life with dignity and self respect? Can we stop treating her as an untouchable? The answer to the above questions is YES, but how many of us CAN?

Anjana Telang I am presently studying in the Third year in Government law College. I love sports, badminton being my passion. I love to help people in solving their problems however trivial or grave they may be. Simplicity is a quality I admire.

VOLUME

1,

ISSUE

1

PAGE

29

Those who harbour an unflinching love for Quantitative Economics and Big Data may do well to stop reading now. This piece does not seek to quantify social phenomena. It merely seeks to explore how information asymmetry shapes individuals and their experiences. For this exploration, I’ve chosen the lens of High School and have put myself through a rigorous research routine- I watched Mean Girls twice!

One may be justified in wondering how Mean Girls meets the Market for Lemons. Let’s start with some basic juxtaposi-

young women with an unhealthy appetite for gossip, beauty and fame .On the other end of the spectrum is Cady Heron, our protagonist. She’s lived in Africa for most of her life, has never had access to formal education, and aces 12th grade Calculus.

The story sees Cady become friends with Janis Ian and Damien, who’re ‘nobodies’ in school. Janis assigns Cady the task of infiltrating the plastics for some harmless fun. What Janis doesn’t anticipate is Cady’s

(Source: http://www.flickr.com/photos/yoko69/430162762/sizes/m/ , Author: Odenosuke)

.

Sure we maybe amateurs, but we know funda when we see it!

Tripping on Economics

Mean Girls meets Market for Lemons

tion of Economic terms and ideas in the Mean Girls’ system.

Mean Girls, the 2004 American Comedy (with screenplay by Tina Feminist Fey) is set in an American high school and explores the interactions of various cliques and its consequences on students. The most popular clique at the school, The Plastics, is a set of three girls- Regina George, Gretchen Wieners and Karen Smith.

They’re portrayed as nasty

transformation into a core member of the Plastics; before eventually finding her ‘true self’ and returning to a clique of Mathletes. Let’s stop here and examine the origin of these cliques. The Plastics’ popularity is based, as articulated by Janis, upon Regina George’s ‘ability to snag a handsome boyfriend’, ‘hot body’ and an ‘army of blind followers’.

Why would these parame-

ters catapult any student to a position of popularity? How do these parameters become key to defining ‘cool’? I would like to pin most of the blame on Information Asymmetry. If all students were to be considered as buyers of (the idea of) ‘cool’ using a currency of popularity points (fear and/or respect), each clique (jocks, Mathletes, the Plastics and so on) could be seen as sellers of ‘cool’. With these new roles, the high school system can be viewed as follows: The buyers are willing to pay more for ‘commodities’ (in this case which are in short supply (which they lack themselves).

Here, they do not pay for a product or a service, but assign popularity points to a notion. No exchange is involved; it’s merely a quest for market share in terms of popularity for the sellers.

It follows that single women will shell out more p opu larity points at Regina’s ability to snag a boyfriend who is a popular, senior student.

Students with body-image issues will dole out popularity points for Regina’s impressive physique. The peer effect would contribute to an army of blind followers.

(Gretchen and Karen do seem to have low thresholds for influence) Thus, the Plastics earn the most popularity points because of a perceived scarcity of these commodities. Do these commodities really deserve a place of awe in high school? While

VOLUME

1,

ISSUE

1

this may be a subjective domain, one cannot ignore the cultural factors at play here. The media that high-school students find themselves bombarded with, is often laced with unreal standards of what constitutes ‘cool’. I view this as excess information that aligns students towards unfavourable outcomes (for e. g, students may feel pressured to achieve a ‘skinny’ look because “nothing tastes as good as skinny does”, or towards substance abuse because “Hannah Montana did it too”).

Additionally, the absence of emphasis on holistic personal development further skews the balance in favour of the ‘un-ideal’ information, thus idealizing unfavourable outcomes. This dual play of information- an absence of useful information and an excess of un-ideal information allows students to view coolness as an outcome of the parameters that made The Plastics popular. In the Mean Girls system, students elevate the Plastics to a popular position because of a sense of lack, aided by asymmetrical information. A direct implication of this is the creation of a Market for Lemons.

For the ease of analysis, I’ve considered students’ contribution to the school’s well-being (as team players/ leaders) and reputation (as representatives in inter-school events) to be an indicator of their quality. Regina

HOMOECONOMICUS

PAGE

George, who contributes nothing to the school’s well-being and/or reputation, is a lemon (low-quality student). Cady Heron, who wins the state Math championship for the school as a part of the Mathletes, is a plum (High-quality student). However, because of asymmetric information, Regina George enjoys the maximum influence while Cady Heron is nearly driven out of the market (she was given a place in the Mathletes team as a ‘punishment’).

In the unwritten hierarchy that exists in the Mean Girls setting, the Lemons (the Plastics) enjoy prime position, while the Plums (Mathletes, artists etc.) are placed at the bottom.

What happens when this scenario is replicated in the real world? Cheerleaders become the star-students while students gifted at Math, Science or Art are left wondering why fashion shows see more crowds than seminars on Economic Development. The real world’s market for lemons is a nasty place. It’s filled with compartments and labels thrown around aimlessly, and most of these are unkind. As a result, most students find their potential success in a field limited by some variant of peer pressure. Nerds shouldn’t meddle in X, Jockeys shouldn’t do Y and Cheerleaders should stay out of Z!

30

Very few manage to surpass this pressure and create niches for themselves; these are the students one finds in school magazines and awards lists. If this minority is any indication, our education systems have failed the aspirations of hordes of students; each of whom could’ve contributed immensely to society at large. The high-school experience can be made infinitely more rewarding by addressing the gap in information. Adequate attention to personal development would help students to choose their parameters for idolatry wisely. Additionally, the soft skills that thrive with a balanced sense of self-worth would enable individuals to contribute to society in more ways than one. After all, shiny plastic is worth little in the knowledge economy of the future. And no one wants a future full of Mean Girls.

References: http://en.wikipedia.org/wiki/Mean_Girls http://www.imdb.com/title/tt0377092/

Malathi Jogi studied Economics at Jai Hind College, Mumbai. Currently, she explores questions about people, politics and society (when she's not reading, writing or ranting). Share input and feedback at mjogi.92@gmail.com

VOLUME

1,

ISSUE

1

PAGE

inflation, again economics! It might be an individual or group activity, but we have to use economics for decision making in life.

I wish to use one word which my grandmother used to use while narrating mythological stories

(Source: http://commons.wikimedia.org/wiki/ File:Chanakya_artistic_depiction.jpg, http://

The Arth of Economics

Considering a country like India, where we have considerably good progress on literacy ratio front, real question is ‘Are we really economically literate?’ If not it could be a major hurdle in India’s sustainable growth in the long run. We have more number of cell phone users as compared to saving account holders (thanks to technology) - sign of backwardness at Arth Front!

‘Anecdotal’ Evidence I would like to share few of my experiences (which create very positive hope for me!). One day, one of my students approached me, saying that she asked for Life Insurance Policy as a birthday gift. . Upon further enquiry, her rationale was more pleasantly surprising: . “Sir, I am first in my family to learn economics, and I realised importance of insurance which inspired me to start investment on my birthday!” I was amazed and can’t explain what pleasure I derived on that day. Education is beyond clearing exams, it is an enlightenment. In yet another incident, a young graduate called me to inform that he opted for Systematic Investment Plans which we had discussed in one of the lectures.

That’s the application of rules and ideas which is expected from literate students!

Bird’s eye Perspective Now let’s consider some macro issues. Why do financial markets collapse? Rather why does any system collapse? I think answer to this question lies in individual and group

morality and not mere laws that govern the system. Decisions, perceptions, ideology of an individual highly impact the group or society. I personally feel that society with lower level of economic awareness may get trapped in lower level of equilibrium in governing the system. Good Politics versus Good Economics is similar kind of an argument in developing country like India where many small factors are involved in policy formation at various levels. I believe that a financially literate society can keep a much stronger watch on policy decisions than others. India is in transition period and we require quality workforce to cope up with the challenging environment. I believe that economics is not going to be an optional subject anymore.

Learning economics and application of the same in daily decisions is really important for much of the progressive development that economists speak of. These days we learn modern economic thoughts from many bright economists around the world, but do we study Chanakya and his ideas of Arthshastra?

Maybe not on a large scale. Like in the case of many other sciences, India has rich heritage of economics ideas, but mostly ignored or unidentified. It’s time to explore and spread economics to masses and it’s not going to be via formal education. It’s the responsibility of every individual who has acquired knowledge of it. So let’s have it as a New Year Resolution!

Let’s explore Arth of Arthashastra - Learn economics, Teach economics!

Guest Author

“Hello Koustubh, how are you? What are you doing these days?”. “Hi! I am fine, I teach Economics”. “Oh! You teach economics, that’s great yaar!”

Now, I am used to such conversation with friends and relatives meeting after long interval. But what seeks my attention is the word “ohh” in our talk, its mixed of different feelings- curiosity, appreciation, joy, praise and many more. People have various different perceptions about economics as a subject matter, as a topic of discussion and as a matter to ignore too!

But, why is that so? Is economics really boring and difficult? If no (which I strongly feel and believe) then why do we have very few around us who take interest in Economics? Why have scholars and economists failed to attract people to the subject beyond recession and inflation?

Anyway, I will refrain from getting into that debate, but surely economics has increased interest amongst us in recent times.

Being an economics student- Universal?

Are you a student of Economics? I don’t think this question really exists, because we are following laws of economics in our daily life or rather majority of our routine decisions are taken in Economic sense. Our selection of commodities like perfume, dress material, computer peripheral or investment in fund, stock, bank deposits have huge influence of economic laws. Why does a college campus or a central Market in town have peculiar types of shops selling similar commodities? An answer to this question lies in Economics of Institutions and Markets! When housewife or decision making authority in home stores bulk quantity of sugar or oil for festival season it’s the same case which we have in causes of

–‘Sarvvyapi’ (सर्वव्यापी) means, it is everywhere! Equilibrium, yes! The word often used in lecture is not associated only with economics! I think our each activity in life is nothing but positive efforts that we take to achieve equilibrium of life. One can think of this in terms limited resources and unending wants.

31

Koustubh Joshi has been teaching Economics at college level since last 3 years. Development economics and urban economics interest him. Apart from this, he is an investment consultant and has interest in reading, photography, designing and classical music

VOLUME

1,

ISSUE

1

PAGE

The Politics of Economists

Guest Author

W

hat is the difference between an economist and a politician? Well, an economist may stick to one ideology throughout this life time and a politician, (as we all know very well) may not.

Arguments between economists of different philosophies and ideologies date back to the great debate between Keynes and Hayek and can be as fierce as those between political parties.

Who wins? Of course, the louder one!

The recent comments by Amartya Sen against Narendra Modi’s private investment led economic growth model had grabbed a lot of public attention.

The Congress’ pro-Sen philosophy and Bhagwati’s support for Modi’s model had made a team of the quieter SenCongress against the more aggressive and louder team of Bhagwati-Modi. (I refer to Modi instead of the BJP as Modi is the Prime Ministerial candidate and his model is different from his party counterparts like Nitish Kumar.)

Sen-Bhagwati or Congress-BJP? Sen’s remarks were quite obvious, him being a welfare economist. Gujarat’s economic growth has not trickled down as much to improve its social indicators. In terms of malnourished children and enrollment in schools, Gujarat is worse than Madhya Pradesh.

On the other hand, the Congress’ pro-poor rights based “welfarist” approach has led to an unfavorable climate for investment which has led to a deteriorating economic growth (aided by other factors like scams and global turmoil).

So the question that needs to be answered is; “Should economic growth be the ultimate objective, which would trickle down to social development?” Or should increasing human capabilities (as Sen says) be the ultimate objective which will lead to a good quality of life? Let’s leave this argument for eminent economists, philosophers and Nobel laureates and enjoy the drama, seeing them squabble.

What can be done then? It is necessary to streamline the channels and linkages between social development and economic growth. So even if a Modi government comes to power in the upcoming election, the channel to bridge economic growth with social development will be so strong that one will lead to the other, and vice versa.

Bridging a gap between the two How can we streamline the channels and linkages between these

(Source:http://commons.wikimedia.org/wiki/ File:Friedrich_August_von_Hayek,_27th_January_1981,_the_50th_Anniversary_of_his_first_lecture_at_LSE,_1981.jpg, http:// commons.wikimedia.org/wiki/File:John_Maynard_Keynes.jpg Author: IMF)

HOMOECONOMICUS

32

two ideologies? The answer lies in something which we haven’t spoken about so far; our legislature. At present, red tapism swathes our government. Inefficient bureaucracy, corruption and ancient laws and regulations diminish the advantage of the “demographic dividend”. The legislature has formed an unbreakable cocoon over the working generation and is thus impeding growth and development.

For instance, let us consider the linkages between economic growth and social development. Economic growth leads to an increase in income and hence, a higher tax revenue for the government. This will be spent by the government in various development related schemes such as education, health care, employment generation etc. The allocation, distribution, monitoring etc is to be undertaken by the government and knowing our government, it would certainly not be efficient enough for economic growth to lead to social development.

Consider next, the idea of social development leading to economic growth. Expanding human capabilities through education, health etc to give a better quality of life to citizens (Human Capabilities Approach, as given by Amartya Sen) will propel an entrepreneurial spirit among the working young generation. But under any circumstance they should not be trapped in a web overburdening regulations.

For example, if you need to get 150 types of licenses to operate a manufacturing concern and almost 75 different licenses to open a retail outlet in a mall, then certainly, these entrepreneurial dreams may not see the light of day.

The Real Problem Another example is that of cities, which are known to be the drivers of economic growth. However city living is characterized by stalled infrastructural projects (owing to stalled government clearance). People spend 3-5 hours in traffic jams, which reduces productivity. What is the use of

VOLUME

1,

ISSUE

1

PAGE

unknown. Getting rid of corruption and making the lethargic government and bureaucracy more active and answerable will definitely go a long way in paving the common road to economic growth and social development. In my view, the legislature should be made foolproof with the endurance to face a constant change of political power/ ideology. It is on the industry lobbygroups, bureaucrats and the will of politicians to make this happen.

Gaurav Khandelwal. I have completed M Sc in Economics and am currently practicing policy advocacy at the retailer lobby group – Retailers Association of India. I have worked in the past at CRISIL Credit Rating as a rating analyst.

Being a pianist and a keyboard player, I play for a blues band – Blackwings.

आरोग्याविम्याची अत्यािशकता

आ

र्थवक

र्ाढ

ही

चा​ांगल्या आरोग्याचा दर्वक असते , असे

म्हटले जाते .परां तु आपल्या दे र्ात आरोग्य आणि सांपत्ती यातील सांबध ां

फारसा स्पष्ट होत नाही . आरोग्यसेर्ेची समस्या ही आपल्या दे र्ातील प्रमख ु समस्या​ांपेकी महत्र्ाची आहे. मािसाचे

आरोग्यासेर्ा​ांवर्षयी

सामान्य

अज्ञान

आणि त्याची अर्ाजर्ी ककां मत हे प्रश्न आहे त . आजच्या घडीला , भारत दे र् आरोग्यसेर्ेर्र ग्रामीि भागात $ ७

आणि र्हरी भागात $१० इतका र्ावषवक खचव करतो.

परां तु तरीही अांदाजे १३५ मममलअन्स भारतीय या सेर्ा​ांपासन ू र्ांर्चत आहे त.

एका सर्ेक्षिानस ु ार ८०% गरीब लोक चा​ांगल्या आरोग्य सवु र्धा​ांसाठी जास्त पैसे मोजायला तयार आहे त. चा​ांगल्या आरोग्य सवु र्धा र्ाजर्ी दरात ममळिे हा प्रत्येकाचा

हक्क

आहे

आरोग्यावर्म्यावर्षयी

.

म्हिूनच

जागरुकता

ननमावि करिे अनतर्य गरजेचे आहे.

आरोग्यसेर्ेसाठी आर्थवक सांरक्षि

दे िे हे आरोग्यावर्म्याचे मख् ु य कायव आहे. हॉस्स्पटलमधील खचव

आणि

आजारीव्यक्तीच्या औषधपाण्याचा

खचव याचा काही प्रमािात भार उचलिे

हे

धोरि

या

आहे

वर्माव्यर्स्थेचे

आरोग्यावर्म्यावर्षयी पररस्स्थती आहे .आज

अनतर्य

नागररका​ांना

८५%

परां तु

भारतातील

र्चांताजनक

भारतीय

र्ैद्यकीय

उपचाराकररता खचव करण्यासाठी

आरोग्यावर्म्याचे सांरक्षि उपलब्ध नाही. त्यामळ ु े

त्या​ांना

कमी

दजावच्या आरोग्य सवु र्धा ककां र्ा योग्य सवु र्धा ममळण्यासाठी खूप

आर्थवक नक ु सान सोसार्े लागते. हा आर्थवक ताि सांपि ू व कुटुांबार्र

वर्परीत पररिाम करतो आणि पन् ु हा

एकदा

र्ारीररक

र्

Guest Author

expanding human capabilities if it is wasted in traffic jams? Several power, water, irrigation projects are awaiting approvals from government ministries while Indian citizens face shortage of resources. Maybe scarcity of resources is not as much of a problem as allocation.

Recently, a Neta got himself operated for a kidney transplant in Sri Lanka rather than in India even though his wife was the donor. Why? Because he wanted to escape the riddling formalities and procedures! It is the need of the hour to have laws and regulations which suit the current Indian economic climate. The solutions are not

33

मानमसक

तक्रारीांना

म्हिन ू च

, आरोग्य

वर्मासेर्ेची

प्रत्येक

व्यक्तीच्या

लागते..

व्याप्ती

र्ाढवर्िे

वर्माकांपनीने

सामोरे

आर्श्यक

जार्े

आहे .

आर्थवक आणि तत्कालीन गरजेनस ु ार र्ेगर्ेगळ्या प्रकारच्या योजना आणि सेर्ा परु र्ल्या पाहहजेत. त्याचप्रमािे या

सेर्ाबाबत

अर्धकार्धक

जागरुकता ननमावि करायला हर्ी. या सेर्ा​ांची उपलब्धता आणि कायवपद्धती

सोपी आणि सहज असिे गरजेचे आहे त. त्याच

दृष्टीकोनातन Apollo ू

Munich , ही आरोग्य सांस्था

वर्माक्षेत्रातील

"Uncomplicated

Health

Insurance" नार्ाच्या योजनेखाली ५ र्षावत

सांरक्षि आहे .

५००

मममलअन

दे ण्यासाठी प्रयत्न

लोका​ांची सामास्जक स्स्थती

मानमसकतेर्र

लोका​ांना करिार

आणि

आर्थवक

पररिाम

करते

आरोग्यावर्म्याबाबतच्या

VOLUME

म्हिन ू च

1,

ISSUE

1

PAGE

.सरकारने आणि regulator

Swati Bhat. I am

या​ांनी लोका​ांना आरोग्य वर्म्यावर्षयी प्रमर्क्षि

दे ऊन

त्या​ांना

ही

सेर्ा

घेण्यास प्रर्त्ृ त केल पाहहजे .प्रत्येक सज ु ाि वर्मा

नागररकाने

आणि

प्रत्येक

कांपनीने महत्र्ाची भमू मका

ननभार्ली पाहहजे. हे सगळे एकत्रत्रत प्रयत्न

नक्कीच

सध ु ारतील.

दे र्ाचे

34

आरोग्य

(Source: http://commons.wikimedia.org/wiki/ File:Seva_Mandir_immunization_camp.jpg, Author: GiveWell)

SYBA student in Ruia College .I am learning German language from MMB ,Mumbai. I wish to become Interpreter and translator. Apart from these, I like to participate in various elocution and debate competitions. I had been part of "Coffee House" , the program on (Akashvani) All India Radio. My hobbies are reading , writing and travellin g. My email -id is bhat.swati394@gmail.com .

Animal Economics interests me most. Animals have

Your pick

HOMOECONOMICUS

been a source of livelihood for humans since ages. Tourism, agriculture, food, travel and the list is just endless! With our inhuman spirit to be perpetually unsatisfied and greedy, we have caused hard devastation of nature, ecological systems and food chains. Extinction of any species brings with itself a loss of related stakeholders and this issue can be ignored, no longer. With all this, I intend to say, animals ought to be protected and preserved, not only for emotional and humanitarian purposes, but also because by doing so, we will be saving our economy. In fact it would be counterproductive to do otherwise. For instance; the wild Himalayan Myna bird has only two survivors left and recently, more than 10 crores were spent for their preservation without positive results. PREVENT EXTINCTION and you will literally create a livelihoods.

-Valentina Bhowal

VOLUME

1,

ISSUE

1

The Economics of UPSC

PAGE

compared to what parents are required to dole out at various

T

he Union Public Service Commission (UPSC) is a constitutional body that conducts many entrance exams in different fields, of which the Civil Service Examination is highly sought after. Basically, any career option we choose is ultimately for earning an income and for survival and so the choice itself has an economic undertone. Keeping these multiple dimensions in mind, analyzing the economics of civil service aspirants has been an interesting and thoughtprovoking exercise.

To begin, consider the initial, preparatory part of this examination and try to grasp the economics of the same.

Let’s revise a very common concept of economics; aggregate demand. Aggregate demand generates a need for an investment, which catalyses the production process and generates profit.

Moreover this investment is responsible for boosting the efficiency of the production process through the introduction of technology. This self generating investment principal holds true for the civil services as well. When candidates think of attempting this examination (demand) they undertake an investment with tremendous focus, dedicated efforts, patience and time.

Along with this real investment, there are some monetary investments viz. exam fees, books which are quite negligible when

Daily dose

(Source: http://commons.wikimedia.org/wiki/ File:Emblem_of_India.svg, Author: Indian Government)

levels of education from the primary to the higher levels.

Often this investment leads to the aspirant giving an output that exceeds demand.

At the same time, the government will be required to undertake a similar investment to create the necessary infrastructure to conduct these exams and to train the staff etc (Induced Investment).

The output or the earnings can be seen in tangible and intangible terms such as a stable job, diversified and challenging job perspectives, respect and social status, financial stability and dignity. Given this surplus output, we know that super normal profits are realized in the form of immense knowledge (combining the crux knowledge of several masters degrees), high social recognition at very young age (age of 25), an opportunity to serve at the position of The Cabinet Secretary rank (highest administrative post almost equal to the position of the Prime Minister) and ultimately to serve the

35

needy by the restoration of their powers and rights in society. In a developing country like ours we need to introduce certain institutional changes to generate a rational and truly secular outlook. Instead of a rule of man there has to be a rule of law and that is the main idea behind UPSC. In my view, no other career will provide one with such a generous output. That too, with such a small investment!

Only a glimpse at these economic considerations fills an aspiring candidate with the inspiration and enthusiasm to push forth and succeed to earn supernormal profits. Though economics is considered a tedious and stressful subject, the economic considerations of entering into civil services are very obvious and inviting.

So get ready to be an entrepreneur of your own life, by managing the economics of civil service exam preparations and most of all to become a specialist on the basis of being the generalist!

Kaustubh Bambarkar. I’m not only a student of B.A but also a blooming artist, who aspires to explore the possibilities of representing thoughts as an abstract art of words. I believe, in this modern world, use of words as weapons and trained minds as skills will bring about a true change and that's where THE REVOLUTION starts!

VOLUME

1,

ISSUE

1

PAGE

Economics as bread and butter

K

Just ask yourself the following Questions 1.Do I like reading news about economic events happening around me?

2. Am I comfortable with mathematics?

Am I ready to study mathematics up to XII standard?

3.At senior college level, along with economics will I be able to study statistics and mathematics or at least statistics?

4.If someone shows me the hidden economic issue in the apparently political or socio-cultural event, do I enjoy it and try to do same myself with other such events?

5.Am I good at logical reasoning? Can I look at the issues in a very dispassionate way, without getting influenced by my gender, class, caste, religion etc.?

tific way of testing yourself i.e. going to an ethically correct career counselor and get your aptitude test done. There are many students not comfortable with mathematics, but like economics.

They also can make a career for themselves in economics but career options for them are limited and getting admission to good post graduate institute may be difficult.

Where should I study economics? At junior college level, doing mathematics is desirable, so a college that offers it as an optional subject (this is especially important for Arts students) should be chosen or one should study mathematics privately and opt for it at XII standard level. At present, in most of the Universities in India, specialization in economics is possible only in Arts faculty at UG as well as at PG level. Very few institutions have started B.Sc. and M.Sc. in Economics. At TYBA level, some colleges offer ‘Econometrics’ as one of the optional paper. It is advisable to opt for it if one wants to study hard core economics at the PG Level.

Similarly, doing double majors i.e.

Economics and Statistics or Economics and Mathematics are also very good options.

Studying Economics at Post Graduate Level: Almost all Universities in India offer PG Programme in Economics.

Some of the important institutions/ Universities are listed above. For all these PG programmes, admission is given through entrance test. Details of eligibility, fee structure, specimen question papers of the entrance test are available on the websites of these institutions. Preparation for If your answer to all these questions is these entrance examinations should ‘yes’, then you will enjoy studying eco- start right from FY level. Some imnomics. There is of course more scien- portant Institutes/Universities offering Post Graduate Programmes

HOMOECONOMICUS

1. Indira Gandhi Development Research Institute, Mumbai(M.Sc ,Ph.D) 2.Delhi School of Economics, University of Delhi, New Delhi(M.A, Ph.D) 3.Jawaharlal Nehru University, New Delhi (M.A, Ph.D) 4.Gokhale Institute of Politics and Economics, Pune (M.A, Ph.D) 5.I n d i a n S t a t i s t i c a l I n s t i t u t e , Delhi ,Calcutta(M.A, Ph.D) 6.Madras School of Economics, Chennai (M.Sc, Ph.D) 7.Department of Economics, University of Mumbai, Mumbai(M.A, Ph.D) 8.Indian Institute of Foreign Trade, New Delhi, Kolkata 9.Tata Institute of Social sciences (M.A, Ph.D), Mumbai, Tuljapur, Hyderabad, Guwahati

Guest Author

arl Marx was of the opinion that, it is ultimately economic variables in the society that shape the socio-cultural, political and even the religious framework of the society. Of course, many people consider this as an extreme view but still majority of us will agree that economic factors predominate in shaping the future of the nations as well as that of individuals. Therefore, studying economics was always considered as a very promising career option. In the present globalised world when economic forces are unleashed and made free to move around the world, study of economics has assumed an added importance.

Economics can be studied at various levels, right from VIII Std. in school to Ph.D.level. Even if one has decided not to make career in economics, studying economics up to XII std. (if possible up to SYBA/B.Com/B.Sc) level is always useful as training in enlightened citizenship. Democracy works better when level of economic literacy is high. Family finance can be managed in a better way if one has studied economics for a couple of years.

Who should consider ECONOMICS as one’s bread and butter?

36

in Economics in India: All the institutions/universities mentioned above have highly subsidized fee structure which is easily affordable to the middle class. Some of the unaided institutions also offer UG and PG programmes in Economics but, they charge very high. Although few of these are good, one needs to be extremely cautious and should verify all the tall claims made in their advertisements (especially about the placements).

Many students also go abroad (popular destinations-UK,USA) for PG education however, not all foreign universities are great enough.

Getting job in UK/USA or any other western country is becoming difficult. As a result, rate of default in case of education loans has increased substantially. Of course, if one gets into a good foreign university (offering a good programme) - it’s a very good opportunity. Education loan in this case will “burn itself”.

Excellent academic record, impressive GRE score and participation in co-curricular and extracurricular activities are some of factors that are required to get admission into good foreign universities.

Career Opportunities: Indian Economic Service: Exams are conducted by the Union Public Service Commission. Details available on the website Finance Industry: All financial institution (e.g. banks, insurance, mu-

Guest Author

VOLUME

1,

ISSUE

1

tual funds, credit rating institutions etc) need economics graduates as consultants, planners, analysts/ research officers. Usually, these institutions pick up the best of the economics graduates/postgraduates through campus interviews. RBI conducts competitive examinations to recruit research officers at grade A and grade B level.

Other Corporate Sector: All companies need economists as consultants and advisors.

Research Institutes: Institutions that specialize in research related to economic issues need economics graduates .e.g. CMIE, NSS Media: Print as well as electronic media need economists as researchers, analysts.

PAGE

37

College Teaching-eligibility: PG in Economics (B+ Grade or minimum 55% and NET/SET Exam Clearance.

Freelance Teaching: Teaching as a visiting faculty in different institutions. E.g. Business schools, Engineering colleges, Unaided Private colleges offering Courses in Economics.

Ms. Devayani Ganapule having pursued MA Economics at University of Mumbai has been teaching Economics since 1986. She has a special interest in Economics of Education.

Current Vacancies (Source: http://commons.wikimedia.org/wiki/ File:Careers_Advisory_Service,_c1981.jpg, Author: Library

Teaching: Full time Degree

How to Analyze the Economy of a Country?

“Economy is the method by which we prepare today to afford the improvements of tomorrow.” -Calvin Coolidge, Former US President Let’s work together on a simple way to study an economy. As convention demands, our first lookout is GDP which is quite a correct indicator. The Gross Domestic Product of an economy shows a country’s standard of living.

However, this is a prima facie indicator that can be extremely accurate or a total misnomer. It is important to dig deeper.

So let’s move towards the next step i.e.

Type of economy. To know the actual economic position of a country like Production & Consumption Patterns we need to understand the kind or type of how the Economy is viz. Capitalistic or Socialistic or Mixed. Every country has its own long drawn history, so the economy has also undergone many changes as per the history and progress of every nation. In this century alone, there were several rounds of changes, especially after the two World Wars. The global economy has rapidly evolved.

Now for some examples: 1.Capitalistic (Free Market, Open Competition, Profit Motive & Private Ownership) : USA, Switzerland, Canada, Australia, South Africa 2.Socialistic (Planned Economy, Social

ownership without Profit Motive) : North Korea, China, Russia 3.Mixed (Capitalistic + Socialistic) : India, England, Germany, Sweden, Italy, Hungary, Mexico As you can see the type of an economy depends on the means of productions used, its control and ownership and consequently the distribution of wealth. Now let’s highlight those Indicators which help derive the real, complete picture of an Economy.

1. Population  Total Population  Demography & Density by Region  Elderly Population & Young Population  Immigrants & Migration 2. Productivity  Size of GDP  Investment Rate 3. Household Income  Per Capita Income  Household Savings 4. Global share  International Trade  Trading Partners  Foreign Direct Investment  Balance of Payments 5. Prices  Inflation  Producer Price Index  Long Term Interest Rates  Exchange Rate

6. Energy  Energy Generation & Supply  Renewable Energy  Oil Production & Prices 7. Labour  Labour Cost  Employment Rate  Unemployment Rate (Jobless Rate) 8. Government  Govt. Budget  Govt. Debt  Total Expenditures & Income  Total Tax Revenue  Current Account & Trade Account (Surplus or Deficit)  Government Subsidies Above mentioned are broad parameters to understand the economic system of any country. All major fund houses thoroughly analyze the situation and economic conditions of any country, using similar parameters, before making big investments. This is the kind of analysis which must be undertaken for all Emerging Economies before they are chosen to be the top investment destinations!

- The Creative Conscientist

VOLUME

1,

ISSUE

1

PAGE

38

Gour-Make at home

Say the word ‘khana’ and Mumbaikars are sure to come running! Be it panipuri, vada pavs, or pav bhaji -we love it all! Recent additions to this seemingly endless list of gastronomic delights include dishes like beef tenderloin with mash, foie gras (fattened liver), smoked salmon with caviar and so on. Mumbaikars (or for that matter, many Indians), have shown an increased interest towards the field of gastronomy and terms like ‘sous-vide’, molecular gastronomy’ and ‘roux’ are no longer foreign. Earlier, the usage of such terms would have evoked an ‘Oh, isn’t that stuff very lah-di-dah?’ But not anymore! Thanks to a certain Australian cooking show, which made its debut 4 years back on Indian TV. We now want to live, what is commonly referred to as the ‘Masterchef experience’, eating food cooked by Michelin star chefs, which is characterized by its presentation, thus obeying the golden rule ‘we eat with our eyes first’!

Responding to the increased demand for these exotic ingredients, restaurants have started importing ingrediants like truffles (Rs.33,000-40,000 for one kilo), caviar (Rs. 33,000 for 30gm) and artisan cheese (Rs. 5000 per kilo).

These are essential to create dishes evoke the usage of adjectives like ‘elegant’, ‘sophisticated’, ‘refined’ and ‘polished’, made popular by chefs like Gary Mehigan, George Calombaris and Heston Blumenthal.

Money is also being spent on replicating these dishes at home. Ingredients like Asparagus (Rs. 200 for 250gm), Portobello mushrooms (Rs. 2500) and Avocado (Rs 200 for 1) are being purchased now and then along with normal groceries to add some excitement, flavor but mostly panache to regular everyday meals. Though these figures make it seem like fine dining is a luxury that can only be achieved by the rich, it is more about the experience rather than the expense. It is an investment that brings endless dividends. For the diner, delicious foods

HOMOECONOMICUS

Gourmet Street Food (Source : http://www.flickr.com/photos/globetrotteri/4271655610/in/photostream/ Author: Carrie Kellenberger)

may bring back childhood memories, give a fleeting experience of gastronomical luxury but most of all it spares him/her of a lot of heartache (more like tummy ache) while watching food based reality shows.

For the chef, a sense of satisfaction that the message sent through his food has been received with warmth and appreciation. And for the Government, revenue, of course! (VAT is charged at the rate of 12.5% and service tax at 4.95%) The food sector is one of the largest sectors in India in terms of production, growth, consumption, and export. The Indian Food industry currently stands at Rs 247,680 crore and is expected to touch Rs 408,040 crore by 2018, registering a growth of 11 per cent, according to a report

by The National Restaurant Association of India (NRAI).

And who wouldn’t want to invest in such a rewarding field? In fact cuisines of almost every country of the world will soon be easily replicated/repackaged into restaurant/ street/ home-made food with ease.

It would be globalization in the true sense of the word! There are many factors that contribute to this sudden growth. The main one being, the rise in incomes! It is a basic economic fact that when people earn more, they spend more! But in this

case it isn’t the quantity which they are increasing, but the quality. So our gourmet industry gets a boost, which boosts the entire food sector! However, there’s a long road to walk till this happens. So, till then, go to the nearest gourmet restaurant and order your medium-rare or well-done steak with sous vide potatoes and veal jus!

Sources: Prices of food and vegetables: Godrej Nature’s Basket Stats - the food industry: http:// www.ibef.org/industry/indian-foodindustry.aspx http://www.foodservice-india.com/ IFSI-2013_Bro_new-OK.pdf

Sanjukta Nair,18. Loves cooking, music, solving Sudoku and various other word and numerical puzzles.

Ardent cat lover and an avid fan of gothic romance novels, she aims to travel around sthe world and taste delicacies from all over.

VOLUME

1,

ISSUE

1

PAGE

39

Driven by Need- Rickshawalas in a Metropolis

The auto rickshaw, contributes by being a relatively inexpensive and efficient public transport system that provides mobility for the economically marginalized, women, the old and the young alike. According to the Motor Transport Statistics of Maharashtra 2010- 2011, auto rickshaws are a popular mode of transport and are safer than other modes of transport. Auto rickshaws caused 6.9% of the share of total road accidents 4.

Specifically, due to the auto rickshaw’s lower speed of travel, smaller size and easy manoeuvrability, it is the motorised way of transport with the lowest commuter fatality rates. The three wheeled model is easy to manoeuvre in traffic and congested areas. It is also the preferred mode of transport for its low cost service as compared to taxis, its provision for personal space and last mile connectivity 5. After the conversion of rickshaws to CNG fuel, they are also lower emitters of carbon as compared to other modes of transport, hence more eco friendly. With the use of government regulations and technological advancements, the safety of auto rickshaws can be increased even further. New developments in the field of GPS and call- arickshaw or online bookings could improve the availability and monitoring of auto rickshaws. Aside from being an important means of transport, auto rickshaws are also an important source of livelihood for a large number of people. An indication of the importance of the service they provide is the crippling effect a day’s strike has on the city’s people who rely on them. Rickshawalas are often criticized for their behaviour with the passengers and for being cheats, they are however, undoubtedly an integral part of the daily interactions of many in the city. With the movement of multinationals northward and away from the erstwhile hub of South Mumbai, auto rickshaws emerge as an important means of transportation for the suburban populace.

Paper Mache

umbai city, the commercial capital of India, has an enormous population of 933248 1 . The city still has the ability to draw migrants from distant areas of the country looking for work. The transport problems of the city therefore, are formidable. Rail networks that created development corridors contributed to greater connectivity and expanded out north and east from the established cores of South Mumbai2. This suburbanization established a further need for Intermediate Public Transport (IPT) to meet transport needs. Resplendent with income inequalities and uneven distribution of wealth, the city needs a public transport system that is convenient, cost effective, and accessible. The public transport system of Mumbai comprises of railways, buses, taxis and auto rickshaws. Auto rickshaws, or three-wheelers, in Mumbai, as of 2011 were 640700 in number, of which Thane has 40215 3 . There are other forms of rickshaws in cities in India such as the cycle rickshaws still operating in Amritsar, Central Delhi and Kolkata, whereas manual rickshaws that would be pulled by a rickshaw puller are perhaps only functioning in Kolkata.

Get your taza research findings, served hot from the field (data)

M

(Source: http://commons.wikimedia.org/wiki/File:Nagpur_Autorickshaw.jpg, Author: Satyajit Dhawale)

VOLUME

1,

ISSUE

1

PAGE

40

This paper thus aims to study an important part of the public transport service- the Rickshawala.

Research Design This research study is an empirical descriptive study with a qualitative orientation. An interview schedule that included questions that considered general brief profile, financial variables, health and opportunities for recreation was prepared. Keeping in mind the objectives of our study, the categories were as follows: basic information, experience in driving, ownership of the vehicle, monthly income and expenditure, monthly savings, competition from taxis, future plans, daily hassles, risk of accidents, health problems, unproductive time spent, value for work, social and environmental concerns, and opportunities for rest and recreation. A total of 12 questions with sub questions were prepared. The questions were then translated to Hindi to facilitate better communication with the rickshawalas. Random sampling was used. As responses were taken from Thane and Bandra, which were areas easily accessible, the sampling may also be called convenience sampling. In doing the actual interviews, accompaniment was essential. The com pany of a person comfortable with speaking Marathi and Hindi, helped in creating a rapport. Microsoft Excel was used to make graphs where quantification was possible. Other items were studied qualitatively. Two case studies were also done to add substance to the qualitative paradigm with which we have approached the study.

Data Interpretation A general trend observed in our respondents, is the dissatisfaction with the profession. On recording their future plans we were able to discern that most rickshawalas do not intend to continue in this profession. Due to the unreliable and unsure income earning capability and the strenuous nature of the work, they do not seem to see it as a job anyone would dream of doing. The most common response we got was- “Nobody grows up hoping to someday work as a rickshawala”. This statement is a clear indication of the dissatisfaction and discontent with the profession. Most respondents are immigrants who have arrived from different states all over the country. Though one may think it is due to the “urban pull” or the presence of better opportunities in cities, this is not the case. The rural population is moving to the city because of the dearth of opportunities there, i.e. to the “rural push”.

The great influx of migrants in Mumbai has always been a topic of much political debate. The purpose of this paper is not to analyse migration in relation to its effects on the city as a whole. However, it is in this case, to study migration as a causal factor for the springing up and perpetuation of this profession. Most respondents are first generation migrants with little or no education and no skills required for a job in the organised sector. Being first generation migrants, the adjustment they must have to make to their lifestyles are significant. As they have no training and no expertise in any field that may be of use to them in view of the income they expect to get in the city. Thus they find driving a rickshaw is an easy option and get into the profession with a mind-set that they will soon leave. They intend to find a line of work where they will get a higher pay in future but always enter into it with a view that it is interim.

On working in the same line for about ten years, they find that it becomes difficult to leave. Though they may be dissatisfied with the pay, the hours, the lack of benefits and their perceived ill treatment by passengers, they continue in the profession because of the reasons for which they entered. The rude behaviour, tampering of meters, bogus tariff cards, overcharging, and refusal to take passengers and general discontent with rickshawalas that passenger have is not without reason. The anger and cynicism that comeswith discontent could explain their behaviour.

If the general dissatisfaction would have been reason enough to leave the profession, especially for those who have been in it for a period longer than ten years, then our respondents don’t follow this trend. Many of the rickshawalas would leave as soon as a better opportunity comes up but intention does not seem to be followed by action. People prefer rickshaws as a mode of transport and the demand for rickshaws will rise as the city grows. In a rather cyclical fashion, so will the profession. The rural push would continue to send the rural poor in search of better means of livelihood. Apart from not receiving health benefits, there is also a dearth of security in the profession. The uncertainty of the income is a given, added to that is the insecurity that they face in terms of their own safety. Of the respondents hardly a few had medical insurance for themselves. Paradoxically, their vehicles were insured. This must be a source of worry for rickshawalas as this mind set indicates the value given to human life. Such uncertainty is bound to provoke dissatisfaction and disgruntlement. The circumstances under which they work are indeed harsh. Long and unpredictable working hours, lack of rest and recreation and the conditions of work are enormous deterrents to job satisfaction. The issues of the rickshawalas that this paper had hoped to study include their financial and health issues. Much of the problems related to finances stem from the nature of work done. This job requires a skill which as our unit of study demonstrates, no amount of expertise contributes to. So a rickshawala who has been driving for 15 years still earns as much as the others who joined 6 months ago. Further, those rickshawalas who own their own rickshaw have a greater scope of earning than do those who rent them. The daily expense in renting them forces them to work for longer hours to cover costs. Also, education has no impact on the profession as part from the knowledge of basic math for calculations and the knowledge of directions; they are not required to know anything which could contribute to their driving productivity.

The health issues reported can be enumerated as follows- headaches, backaches, joint aches, ringing of the ears. Most rickshawalas discount the effects of this on their daily lives when asked about it but claim that bearing problems such as this are inevitable and that they do not require medical attention. Further, the risk of accident and the lack of health insurance is a cause for concern.

According to a study done in Patiala, the “respiratory functions of auto rickshaw drivers who are continuously exposed to emissions from vehicles were significantly reduced as compared to respiratory functions of age, weight and height matched control groups.6” This adds to the health concerns of driving a rickshaw. Rickshawalas are not given the status of public servants but they

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

41

provide a public service. The auto-rickshaw unions demand that rickshawalas should be included in economically weaker sections7 and should be entitled to the benefit of various Government schemes. Rickshawalas do not receive pensions or any other benefits. In view of these issues that form a part of their daily lives, their behaviour may be a reflection of their grievances. This allows one to understand, if not justify the problems of rickshawalas. In plans for sustainable urban transport, the contribution of rickshawalas should not go unnoticed. With a few modifications and latest technologies, the rickshaw could be the public transport system that is most cost effective, fuel efficient and eco-friendly.

References: 1.

2.

3.

4.

5.

6.

7.

According to Census 2011 Manish Shirgaokar- Employment Centers and Middle-Class Travel Behavior in Mumbai, 2013.

Motor Transport Statistics of Maharashtra, 2010- 2011 Road Accidents in India, 2011.

Documentation of Best Practice- The Auto Rickshaw Restructuring Project, 2011.

Aditya Jain, Ramta Bansal, Avnish Kumar, K. D. Singh- Respiratory Effects of Air Pollutants among Nonsmoking Auto Rickshaw Drivers of Patiala City (Punjab State, India), 2012.

Hakim Committee Report in English, 2012.

Koninika Roy, hates describing herself Reshmita Jose Sophia-ite, Feminist, so she just goes with: Sophia-ite, Serial Foodie, a big fan of The Carpenters and obsess-er, Feminist, Jane-ite and as serially Abba, and finally an Absurd-ist. declared by numerous personality testsIntrovert.

Speaking Trees

Globalization: A Paradoxical Result?

T

he title might instantaneously invoke scepticism in the reader’s mind about the article’s pro communist or anti capitalist nature but it is none of the above. I have only tried to present the facts to the readers, as I have so learned in mfy study of this subject. Globalization, as defined, is the integration of global cultures. It is the phenomenon where the west meets the east and collaborates to make this world more cohesive. In a strictly economic sense, it refers to the process of economic integration of the world economies. This is marked by events such as trade liberalization, capital account liberalization, etc. We may fundamentally question ourselves- Why did globalisation evolve at all, if everything was hunky dory in the first quarter of the 20th century and when most of the world economies were closed and had a fixed exchange rate regime? The reasons can be presented in a nutshell as: Firstly, most of the third world countries became debt ridden by the 1970’s. Their inward oriented growth strategies marked by import substitution, channelling of scarce resources for infrastructural developments and towards various other important sectors of the economy had been unsuccessful. The magnitude of debt owed to capitalist nations kept rising and finally they were in a recessionary whirlpool.

Secondly and most importantly, the stagnancy in the developed economies gave the argument for globalization more strength. By

VOLUME

1,

ISSUE

1

PAGE

42

the end of the 20th century, stagnation hit countries like the U.S, U.K, Japan and other European nations. These countries were endowed with huge stocks of capital but were unable to find the channels to direct their resources. Now, capital if not invested is good for nothing, hence came globalisation.

I wish to elucidate the paradoxical nature of globalisation paired with the hypocrisy of its parent bodies like the International Monetary Fund (IMF) and the World Bank (WB) which are controlled by a handful of wealthy nations with the United States possessing the veto power. Both these institutions were inducted during the Second World War as a result of the UN Monetary and Financial Conference at Bretton Woods in New Hampshire 1944, with the aim of avoiding any further global crisis such as the dreaded Great Depression of 1930’s. I will go on to cite that they not only failed in this objective of theirs but also in most situations, made globalisation the prime source of crisis.

The paradoxical nature of these parent bodies can be seen from the very fact that though the IMF started with a Keynesian orientation of imperfect market behaviour, it made a marked change in its perspective by propagating market supremacy. A body that once talked about increasing government expenditure, reducing taxes and decreasing interest rates to stimulate the economy, today, typically provides funds only if countries increase taxes, cut deficits or raise interest rates causing a contractionary effect on the economy. As explained earlier, the setting of globalisation came at a time when the third world countries, including countries like India were in a huge crisis and hence came forth the IMF and WB, who typically started arm twisting. They introduced their Structural Adjustment Programme famously known as “SAP” under which the third world countries would be given Structural Adjustment Loans (SAL) only if they did massive restructuring of their economies and abided by the following conditions: 1.

Making the economy export oriented, liberalising imports and providing export subsidies.

2.

Liberalisation of capital account and opening up the economy to foreign investments.

3.

Devaluing the local currency.

4.

Removal of government tariffs on imported goods and elimination of subsidies given to the domestic industries.

5.

Decrease in government intervention in markets.

In my attempt to explain the dreaded effects of unmanaged and ill directed globalization, I will explain the above conditions in view of India and the East Asian countries (East Asian crisis).

After viewing the above points even a layman can understand the harm of them and being a student of economics these facts are all the more shocking to me. Clearly these conditions unveils the hypocritical nature of the developed nations which are constantly pursuing the developing nations to open up their economies whereas they themselves have protected their industries, in which they have a comparative disadvantage by imposition of huge import tariffs and by providing domestic subsidies . Though they want to maximise their profits by disrupting the growth of the indigenous industries of the third world nations they won’t let cheaper third world goods enter their markets. We can explain this fact by citing certain examples such as the U.S in 1996 under President Clinton pressurized Mexico into an agreement to end the shipment of low priced tomatoes. It also pressurized steel exporters from Brazil and Japan to ‘voluntarily’ cut the export of cheaper steel into the States since it was hurting the local industries.

Furthermore the condition of export subsidy is another point that hurts the domestic consumers, as when a unit or ad valorem subsidy is given by the government to a sector it actually ends up increasing the domestic prices. When a subsidy is given, it encourages exports and hence there is increased supply in the foreign country. Thus price falls and demand increases, which in turn results in a fall in supply in the domestic market, thereby raising domestic prices (assuming the exporter is large in sense of quantity of goods exported).

Now coming to the Indian subcontinent. Has India, since liberalization, really benefitted as it should have? The question invites a lot of argument but the facts are unrelenting. After its transition from an import substitution regime to an export promotion country, how much has our economy benefitted? The data as it goes says that since liberalization, India still has remained a prime exporter of labour intensive commodities and a survey done during 1995 shows that 70% of our exports are still labour intensive. Though this might not be that worrying, the fact remains that our export growth after touching a high of 21.1% in 1995-96 slowed down dramatically and exports grew by just 5.2% in 1996-97 and went down further to 1.6% in 1997-98 and finally hit rock bottom at 5.16% in 1998-99, thereby increasing the current account deficit since imports did not fall to balance out our trade deficit.

As we proceed to the agricultural sector the facts become more shocking. Here we personally invited trouble, when the government during 1960’s planned a Green Revolution. We imported high yielding variety seeds (HYV) to increase productivity from the U.S, which also brought with them the implicit need of chemical fertilizers and mechanized harvesting. These needs of ours were sufficed by the multinationals which charged exorbitant prices. Thus in this manner we paved the way for corporate farming which has taken over in this era of globalisation. MNCs like Monsanto have set up seed corporations which are driven by profit earning motives only. They, through their well tested means of joint ventures, mergers or acquisitions of small domestic firms, have set up “seed monopolies”. Hence seed is now no more an easy means of resource; rather it is the “intellectual property” of these MNCs which charge limitless profits through royalty payments. Also, far from being a regenerative and multiplicative resource, seeds have been transformed to a non-renewable commodity thereby making it scarce, and thus resulting in high prices and increased debts for farmers. The most alarming bit of information is that a new variety of “terminator seeds” are being developed like the BT- cotton which is engineered for sterility. Hence the farmers will be forced to buy seeds every season thus marginalising them even more.

Another factor of globalisation which has hurt most is the capital account liberalisation. This means opening up your market to volatile capital inflows which brings with them the destructive weapon of “speculative attack”. It leads to “capital flight” since investors both domestic and foreign are interested in returns only hence they will invest in the market which has better prospects thus leading to the creation of an economic crisis. Thus our market is adversely affected by a plethora of foreign factors. This is what India is facing in this current scenario, where our rupee is plummeting not only due to our ballooning current account deficit but also due to the huge flight of capital which has taken place from India to the U.S, in light of the fact that the U.S treasury has declared to tamper with the quantitative easing which was in place.

This is exactly what happened when the Thai baht collapsed on July 2, 1997. This was the advent of the East Asian crisis which af-

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

43

fected countries like SOUTH KOREA, THAILAND, INDONESIA, HONK-KONG and TAIWAN. These countries were upheld by the IMF as the benefactors of their policies marked by huge economic growth. But the truth was far from what they had prophesied.

It was rather their dangerous

(Source: http://commons.wikimedia.org/wiki/File:No_vote_-_Flickr_-_Al_Jazeera_English.jpg, authorRanjit Bhaskar) policies of capital account liberalisation and limited government intervention that brought about this crisis. In early December the crisis hit South Korea, which had previously succumbed under the pressure exerted by U.S and had allowed its domestic firms to borrow from abroad thus exposing her/himself to the vagaries of the international markets. Hence when rumours hit the Wall Street that Korea was in trouble and its firms would not be able to pay back the loans taken, the rollover of loans was stopped by the foreign banks and thus the rumours became true. In case of such a crisis, speculators start betting against the domestic currency and the currency starts plummeting. At this moment, the only way out is an intervention by the central bank which sells dollars and tries to stabilize the domestic currency by buying it. But this way out, was stopped by IMF since it limited government intervention in the markets. Thus followed the devastating effects of this crisis. As the crisis continued unemployment rate in Korea was up by four times, three times in Thailand and was tenfold in Indonesia. In Indonesia about 15% of males working in 1997 had lost their jobs by August 1998. In South Korea poverty almost tripled with almost a quarter of the population falling under its grip and GDP fell by 6.7%. where as in Indonesia poverty was doubled and GDP fell by a whopping 13.1% .Thailand’s GDP also fell by 10.8%. The crisis was so severe that even three years after the crisis Indonesia’s GDP was still 7.5% less than what it was before and that of Thailand was 2.3% lesser.

Hence in conclusion the prescription of globalisation as prescribed by the international institutions (in most cases as we see) caused the disease. Thus globalisation in this form can be beneficial only superficially. In order to make these policies render long term benefits in addition to globalization, there is the need of strong and good governance, a striking example of which is China. Though freed from colonial rule almost at the same time as India, China’s FDI inflow has been all most eighteen times greater than that of India. It was a staggering $40.8 billion in the year 2000, as expressed in the World Investment Report 2001. Though India inherently has many advantages such as greater skilled labour, cheaper wages, etc, backed by good and efficient governance alone China has achieved these milestones. Also policies made must be apt and nation specific. It must not be a policy made to address all nations at once, rather each economy must be dealt individually and then only can we truly rip the benefits of globalization. Hence strong and tenacious governance is what we need today, which, instead of succumbing to the international pressure, will take decisions and frame policies which will be in accordance with the general well being of the nationals.

References 1. Globalisation and its discontents: Joseph Stilgitz 2. Globalisation or Recolonisation: Neeraj Jain 3. Understanding the problems of Indian economy: Uma Kapila My name is Anupam Ghosh I am a 3rd year economics honors student of St.Xavier's college Kolkata. I am a candid and simple guy . I enjoy taking long drives and short trips on weekends with friends.

Beside academics I was a part of the core committee of the annual economic confluence organized by the Xavier's Economic Society. anupam2397@gmail.com this is my mail id if anyone wishes to contact me

VOLUME

1,

ISSUE

1

PAGE

44

Black Swan Theory INTRODUCTION

T

here exist potential events that may perhaps have an adverse impact to the extent that insurance against them is vital.

Though the odds of their occurrence are bleak, the after- effect would be financially overwhelming. Likewise, economic or monetary events that, in-spite-of prudence with money, might cause harm are referred to as – Black Swans.

Such an event has three characteristics: The event is an outlier, outside the realm of normalcy. It must make a huge impact After the event, it is rationalised by hindsight, as if it could have been expected i.e. data to forecast the event was available but ignored by risk mitigation programs. David Hume elucidates that "No amount of observations of white swans can allow the inference that all swans are white, but the observation of a single Black Swan is sufficient to refute that conclusion" (Taleb, 2007). This induction problem forms the basis of the theory. A single point of data is sufficient to refute an established concept. The theory helps analyse rare, unexpected events and finds application in financial markets and risk management, strategy, consciousness in decision-making and as an alternative to the current economic system to deal with risk and uncertainty.

Based on it, economic institutions can be prepared for change and systems can be made more appropriately resilient in the presence of feedback loops.

HISTORCAL BACKGROUND In the Old World, non-existence of black swans was confirmed by evidence. The term implied impossibility. People made the error of equating “absence of proof to proof of absence” until a Dutch explorer sighted a black swan on the western coast of then New Holland in 1697. A single observation of a black swan was enough to invalidate years of sightings of white swans.

PURVIEW In the words of Taleb, “The Black Swan is a result of collective and individual epistemic limitations (or distortions), mostly confidence in knowledge, it is not an objective phenomenon.” An event is not a Black Swan to all observers.

PROTECTION TO BLACK SWANS A Black Swan Event is one with low occurrence probability but high effect and inability to predict. Our failure to forecast outliers implies a consequent inability to predict the future. Black Swan problem renders what you don’t know more relevant than what you know and we don't know what we don't know (Taleb, 2007). After all, no society can predict scientifically its own future states of knowledge (Popper, 1957). This makes banks and trading firms extremely vulnerable to Black Swan events thereby subjecting them to loss beyond those predicted by their unreliable financial models. The theory highlights the role of an exceptional event, advocates building robustness to negative Black Swans and capitalizing exposure and building ability to exploit positive events, anti-fragility for example by creating profit out of it; rather than making attempts to predict the Black Swan event.

Taleb’s new decision-making theory, currently in its nascent stage, aims to minimize the impact of the threats beyond our understanding instead of extending the illusion of the ability to anticipate the future.

Law of Mediocristan – In case of a large sample, no single instance is significant enough to change the aggregate. E.g. Height, weight, car accidents Law of Extremistan – Inequalities are such that a single observation is significant enough to disproportionately impact the aggregate. E.g. Inflation rate, commodity prices, deaths in a war, wealth, income The decision-making model consists of 4 quadrants that could assist our analysis: Our concern is primarily the fourth quadrant, which suffers from problems of induction and pitfalls of empiricism. Plausibility Theory makes employing statistical tools in this quadrant extremely risky. The decision theory of Anti-fragility tries to return from this fourth quadrant to the second or third quadrant where statistics can be safely used. Taleb says that the world is less and less governed by Mediocristan and is becoming excessively Extremistan. Events that are Extremistan in nature are extremely dangerous but don’t appear so which creates an illusion of safety.

GAUSSIAN BELL CURVE

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

45

Though theoretically an intrinsic property, randomness, in practice, is incomplete information or opacity.

Taleb’s triplet of opacity includes”: 1.

The illusion of understanding current events 2.

A retrospective reframing of historical events 3.

Overestimating factual information combined with overvaluing intellectual elites.

In most cases of analysis, focus is limited to the bell-shaped normal distribution curve associated with reasonably predictable events. It ignores large deviations, overlooks the possibility and impact of sharp jumps and discontinuities thus rendered useless in Extremistan. Taleb refers to it as the “great intellectual fraud” and differentiates between datasets that conform to the Gaussian distribution and those subject to occasional extreme events that are unfeasible in the Gaussian world. ‘Mediocristan’ refers to norm in the physical world and more typical events in the financial markets or real economy is ‘Extremistan’. This reinforces the consequences of not realizing which one we are in and prevents comprehension and the consequent analysis of large, unpredictable, real world events that cause major changes in economic life. Large deviations should not be ignored as outliers due to their dramatic cumulative effect. In the real world, extremes occur too often to be adequately modeled by the Gaussian distribution. A normal statistical study throws up a black swan event as a statistical anomaly and divides it by the universe of observations to conclusions. The normal bell curve is thus distorted to give the concept of fat tail, the nature of which could be significantly changed by a deeper understanding of the “expected unexpected and the unexpected unexpected”.

“The Gaussian bell curve variations face a headwind that makes probability drop at a faster rate as you move away from the mean while Mandelbrotian variations don’t have such a restriction” (Taleb, 2007). There exists a higher chance of error in a rare event.

Gaussian models are preferred due to human tendency to allow certainties and definite predictions. Correlation, standard deviation, variation and regression do not hold true outside of the Gaussian. The concept of the black swan event revolves around the structure of “randomness in empirical reality”. Since catastrophic events will be absent from data sets, the distribution will result in overestimation of stability and underestimation of potential volatility and risk. Taleb suggests the use of barbell strategy that eliminates dependence on errors of risk management. It is a defensive and at the same time excessively aggressive by protecting assets from uncertainty and allocating a portion to high-risk strategies.

Other errors pertaining to our understanding of the black swan event are – the error of confirmation: generalizing segments of the seen to the unseen; the narrative fallacy: distorts our perception of the world and vulnerability to over interpretation; not accepting the existence of the black swan; distortion of silent evidence pertaining to black swan events; tunneling: focus on few well-defined sources of uncertainty. Central problems of information are that it is costly to obtain, to store and to manipulate and retrieve. As we simplify information, we disregard black swans as outliers. Despite these fallacies, central bankers and regulators use the bell curve as a risk measurement tool.

CRISES Randomness is provoked not only by exogenous causes but also by the highly dynamic nature of the system. As the market reacts, these endogenous and exogenous factors could result in a shift for the financial system, causing movement further from stability, towards disequilibria rather than equilibrium. The theory, in context to a financial crisis, affirms that history is not determined by the predictable but by what is highly improbable. Unanticipated events create maximum impact.

Numerous researches bring to notice the faults that economists make and facts they overlook. Until the signals of a crisis manifest themselves they are ignored and not paid heed to. Evidence from past trends is also ignored as is validated by the title, This Time is Different, of the research analysing financial crises over 8 centuries carried out by Reinhart and Rogoff (2009). An interesting example is the comment made in the World Economic Outlook (2007) by the IMF, “global economic risks as having declined since our last issue in September 2006”. This was followed by the subprime crisis 5 months later. In a study, only ten economists were able to successfully forecast the probability of a crash that took place, using economic models (Bezemer, 2009).

Taleb’s thesis in 2004 established the Black Swan Theory that can be viewed to predict the 2008 financial crisis. Based on too much debt and leverage and caused due to fragility in systems built upon ignorance, the system collapsed under their weight of the risks it was accumulating. It was a black swan to economists and financers but not to Taleb. Nouriel Roubini was an economist who really predicted the 2008 crisis. A long period of low volatility projected a delusion of control from the evaluation of the regulators as well as the regulated. Taleb criticizes the previously used data-intensive statistical techniques that estimate risk based on short historical time series data dominated risk management in finance. Multiple observers hold this approach responsible for the global financial crisis and consider it to be a black swan.

The subprime crisis was largely a result of the application of conventional financial regulations, monetary policy and severe lack of financial regulation. The policy makers naively applied the Efficient Market Hypothesis. Speculation and lax policies worsened the situation. The need of the hour to combat the black swan was to respond instantly and in an ordered manner so as to reform the financial system with deeply rooted restructuring. The error continued when the crisis was tackled by using conventional methods that should have been rightly used for White Swans. The objectivity of the crisis is evident. Its timing and severity couldn’t be predicted (Lucas, 2010) and it was an unforeseen random shock as a vindication of the EMH (Fama, 2009). The subprime crisis, however, was a grey swan to those familiar with alterations in the banking system and deregulation such as by Raghuram Rajan (Rajan, 2005).

Similarly, the 1982 large American Banks blowup was due to banks deceptively appearing highly profitable. The 1990s dotcom bubble was due to a notion of continuous rise in prices of dotcom companies. The housing bubble had similar basis. A 2005 survey result in Los Angeles indicated an annual 22% rise in real estate prices for the next decade. The general house price trend gave people the impression of continuity leading to the crisis. It was similar to the Japan 1980s real estate bubble and stock market crash. Russian Financial default of 1998 and accompanying collapse of Latin American debt markets, the almost instant bankruptcy of a financial investment firm; LTCM in 1998 was result of the use of bell curve style methods and risk expertise. A combination of events triggered by a Russian financial crisis took place outside their model and LTCM went bust and took down the entire financial system with it. Another interesting observation could be the case of the Indian rupee crash and the

VOLUME

1,

ISSUE

1

Mulgo (Source: http://commons.wikimedia.org/wiki/File:Cygnus_atratus_%22Mulgo%22.jpeg, Author: Unknown )

PAGE

46

price of gold. Both had been on an endless rise that was expected to continue.

Some economists disagree with the idea of Black Swans and indicate predictability. This would be due to the fact that they are resulting from endogenous dynamics, which can be understood and therefore be predicted, at least in principle (Sornette, 2009). Sornette further terms crises resulting endogenously as Dragon Kings. Differentiating between Black Swans and Dragon Kings is vital in determining the choice of risk management techniques.

According to the frequentist risk paradigm, it is a reasonable operation to build expectations on the basis of looking back on data series of the past years and to derive respective risk measures (Onischka and Fucik, 2009).

Pierce popper approach by Sir Doktor Professor Karl Raimund Popper has ideas that concern limitations in forecasting historical events that can’t be predicted without predicting innovation, which is fundamentally unpredictable. Popper’s most significant idea was his insight regarding fundamental, severe and unpredictability of events.

Inference Considering alternative approaches, some claim the absence of any reliable detection mechanism to detect bubbles altogether and that crashes can be modeled as exogenous Black Swans. Others feel ‘dragon kings’, or crashes as a result of endogenous dynamics can be understood and therefore predicted, at least

in principle (Haas et all, 2013).

CASE STUDY 1: LTCM FIASCO OF 1998 Long-Term Capital Management (LTCM) was a hedge fund formed in 1994 with capital of over a billion dollars. The firm operated on a model of economic scholars Myron Scholes and Robert Merton that facilitated risk to be hedged who partnered in LTCM and won the Nobel Prize in Economics in memory of Alfred Nobel in 1997. LTCM was a fairly autonomous, unregulated firm with the freedom to carry out operations in various markets. This is a case of high dependence on models, emergence of unanticipated correlations, provision of high amounts of trading credit and the subsequent requirement to perform stress tests.

Besides other causes, LTCM’s heavy reliance on theoretical market risk models was a major causative factor of its downfall. They were far from stress tests and other checks. According to their conjecture, investments across world markets ensured adequate diversification and hence a low correlation. The firm overlooked the fact that its mathematically formulated models held true only in normal/predictable conditions and deemed unfit in a situation that couldn’t be hedged. The Black-Scholes’ model used Gaussian bell curve and historical datasets to manage risks. Effectively, the possibility of sudden variations, price falls, a financial crash where these events inevitably occur was assumed away (Davidson, 2008). They were of the view that past bond price trends were sufficient to forecast the degree of risk. Since volatility was taken to be constant it could be estimated from past data and risk was ‘volatility about the mean’.

This approach proved to be highly profitable under conditions of normalcy; however, they were unsuccessful in adapting to extremities and Black Swans.

The Asian Financial Crisis in 1997 had left markets frail. Following this, the Russian rouble devaluation resulted in withdrawal of Russian banks that gave hedge against the event. This unanticipated happening went against the LTCM model and made markets illiquid. EMEs were at high risk and investors lost confidence in markets.

The leverage ratio dropped from 25:1 to 250:1. Steep declines can be disastrous for hedge funds. For instance, with 10:1 leverage, a 10% one-day "black swan" really can wipe out 100% of a fund's equity, leaving it worthless and leading any lenders to promptly call in their loans. The investment arrangement ends, permanently (Kitces, 2012). The fund terminated operations in early 2000 and was “effectively liquidated” (Scholes, 2000).

Its failure would have amounted to a threat to the already fragile US economy. There was no major change in the regulation of hedge funds or similar financial institutions despite the recommendations of the Report of the President’s Working Group on Financial Markets (RPWGFM, 1999).

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

47

Figure 5 shows a 5-year trend of investment in LTCM (with extensive leverage), investment in Dow Jones Industrial Average. The steep drop in 1998 indicates the occurrence of the black swan event and the account balance dropped to zero.

The DJIA trend, however, implies only a minute breakdown for the unleveraged investor. As LTCM's trades became less liquid and the need for excess cash grew, the fund began selling off its more secure trades, leaving only the high covariance trades, hoping they would weather the storm (Trillion, 1999).

The model involved heavy use of standard deviation. This assisted in analysis of risk and volatility for normal distributions. This principle suggests that roughly 68% of all outcomes will lie within one standard deviation from the mean. 95% and 98% will lie within two to three standard deviations, respectively (Hendershot, 2007). Conflicting this is the view that on average an observation of more than five standard deviations from the mean should only occur once in every 7,000 years (Fama, 1965).

(Please note that due to space constraints the given paper was truncated.)

Shivika Basin An economics enthusiast and avid reader, she is in her Second Year of Bachelor of Arts in Economics, Mathematics and Statistics at St. Xavier’s College, Mumbai.

She particularly enjoys questioning, debating and analyzing everyday situations.

VOLUME

1,

ISSUE

1

PAGE

48

ए

भारतीय अर्थव्यिस्र्ेच्या मोडकळीची कारणे

का इनतहासकाराने म्हटले आहे ,,“ jar doSaat Aaiqa-k gaulaamaI AalaI Asaola %yaa doSaat rajakIya gaulaamaI yaotoca. ASaIca gaulaamaI saQyaa AapNa doSaat pahat Aahaot. 1991 maQyao jaagaitkIkrNaacao (Globalization) naaro idlao jaat haoto. %yaamaQyao Baartasaiht dixaNa kaoiryaa, malaoiSayaa, qaayalaÐD, haÐगkaÐga [%yaadI AaiSayaa[- ivaksanaSaIla doSaasaiht la^iTna Amaoirka maQaIla ba`aJaIla, kaolaMibayaa, kaosTairka, icalaI, Ajao-iTnaa saarKo doSasaudQaa saaimala haoto. %yaavaoLI BaartamaQyao navaIna Aiqa-k QaaorNa (New economic policy) AaiNa jaagaitkIkrNa yaa daona SabdaMcaa maM~asaarKa jap caalaU haota. %yaavaoLI BaartakDo kovaL 3 Aa ठvaDyaaMcao Aayaat ibala doNyaaइतकेच prkIya calana haoto. Baartacyaa jamaaKcaa-cyaa taLobaMdamaQyao (Balance of Payment) kmatrta haotI. %yaamaULo BaartacaI caalaU Ka%yaavar tUT (Current account deficit) vaaZt haotI. hI kmatrta dUr krNyaasaazI Baartat jaagaitkIkrNaalaa sau$vaat JaalaI. yaacao Eaoya Da^.manamaaohna isaMga yaaMnaa jaatoca. prMtu, माझ्या मते jaagaitk baÐk (world bank) AaiNa AaMtraYTIya (Source: http://commons.wikimedia.org/wiki/File:India_-_Varanasi_electric_fan_factory_-_1464.jpg, Author: Jorge Royan)

naaNao inaQaI (International monetary fund) या​ांनाही जाते.jaovha Baart caalaU Ka%yaavairla tUT (Balance of Payment) Ba$na kaZNyaasaazI yaa daona सांस्था​ांकडे गेला

त्यार्ेळी jaagaitk baÐkocyaa AiQaka¹yaaMnaI कजव दे ण्यासाठी काही अटी घातल्या.

%yaamaQaIla mau#ya ATI KalaIla p`maaNao Aahot.

³1´ tumhI pihlao Aaplyaa calanaacao AvamaUlyana (currency devaluation) kra. .त्यामळ ु े inayaa-t vyaapar vaaZola. jaovha tumacaI inayaa-t jaast hao[-la tovhaca tumhI AamacyaakDUna Gaotlaolao kja- Da^lar maQyao prt k$ Sakala. hIca maaozI caUk KUp raYT/aMnaI kolaI. hI AT kovaL ivaksanaSaIla doSaaMsaazIca Aaho. ivakisat raYT/aMnaa hI AT laagaU haot naahI. ³2´ tumhI Aaplyaa doSaacaI daro bahuraYT/Iya kMpnyaaMsaazI(Multinational corporation) KulaI kra. Asao kolyaamaULo tumacyaa doSaat gauNava%tapUNa- maala तयार होईल. ³3´ tumhI tumacyaa doSaatIla GargautI ]dyaaogaaMnaa (Domestic industry) jao saMrxaNa dota to baMd kra ikMvaa kmaI kra. KUp doSa GargautI ]dyaaogaaMnaa saMrxaNa doNyaasaazI Aayakr (income tax)¸ ]dyaaoga kr(corporate tax), p`%yaxa AaiNa Ap`%yaxa ( Direct and indirect tax) इत्यादी kr maaf ikMvaa saUT doto. ho saMrxaNa bahuraYT/Iya kMpnyaaMnaa nasato. ho saMrxaNa imaLalyaamaULo Krotr GargautI ]dyaaoga हटकार् धरून Asatat. hoca saMrxaNa jaagaitk ba^Mkonao sava- ivaksanaXaIla doXaaMnaa kaZayalaa laavalaI.ivakisat doXaaMmaQyao AjaUnahI GargautI ]dyaaogaaMnaa saMrxaNa idlao jaato.

Kro tr yaa ATI kovaL ivaksanaXaIla AaiNa गरीब doXaaMsaazI hao%yaa.Amaoirka AaiNa yauraopmaQaIla ivakisat doXaaMvar yaa ATI laadlyaa gaolyaa naahIt. jaagaitk ba^Mk AaiNa AaMtrraYT/ Iya naaNaoinaQaI yaaMcao Asao mhNaNao Aaho kIÊ AmaoirkaÊ ÍaMsa saarKo ivakisat doXa `pihlyaapasaUnaca mau@t Aqa-vyavasqaolaa maanatat. %yaaMcyaa Aqa-vyavasqaomaQyao spQaa- Aaho. Kro tr ho ivaQaana pUNa-pNao Asa%ya Aaho. Aata AapNa jaagaitk ba^Mk AaiNa AaMtrraYT/Iya naaNaoinaQaI sqaapna ka Jaalao %yaacaa [ithasa baGaUyaa.dus a–yaa mahayaud\QaanaMtr Amaoirka AaiNa yauraopcaI Aqa-vyavasqaa pUNa-pNao maaoDkLIsa AalaI. Aqa-vyavasqaa sauQaarNyaasaazI 1944 raojaI Amaoirkot Bretton Woods yaoqao ek pirYad Aayaaoijat krNyaat AalaI. %yaamaQyao 44 doXaaMcao raYT/ptI AaiNa p`QaanamaM~I sahBaagaI Jaalao haoto.yaa pirYadolaa Bretton Woods Agreement AsaohI mhNatat. yaa kraranausaar AaMtrraYT/Iya naaNaoinaQaI AaiNa jaagaitk ba^Mkocaa janma Jaalaa. tovhapasaUna “ek doXa ek mat” (One Member One vote) hI saMklpnaa kQaIca $jalaI naahI AaiNa yaapUZohI kQaI $jaNyaacaI Xa@yata naahI. saQyaa Amaoirkolaa AaMtrraYT/Iya naaNaoinaQaI maQyao 16.75% AaiNa Baartalaa 2.34% evaZa matdanaacaa AiQakar Aaho AaiNa ]rlaolyaa टक्केर्ारीमध्ये [tr doXaaMcaa matdana AiQakar Aaho. jaagaitk ba^Mkot Amaoirkolaa 15.85%AaiNa Baartalaa 2.91% matdanaacaa AiQakar Aaho. yaacaaca Kra Aqa- mhNajao yaa daonhI saMsqaovar Amaoirkocao vaca-sva Aaho. dusa–yaa mahayaud\QaanaMtr KUp doXaaMnaa Alp maudtIcao kja- (Short Term Loan) AaiNa doXaacyaa jamaaKcaa-caa taLobaMd (Balance Of Payment) saar#yaa samasyaa saaoDivaNyaasaazI AaMtrraYT/Iya naaNaoinaQaI kja- do[-la AaiNa payaaBaUt sauivaQaaMcaa (Infra Structure Development) ivakasa krNyaasaazI jaagaitk ba^Mk kja- do[-la Asao zrivaloa gaolao. Aata jaovha kaoNatahI ivaknaXaIla AaiNa gairba doXa jaagaitk ba^MkomaQyao kja- maagaNyaasaazI jaat Asao %yaalaa AaMtrraYT/Iya naaNaoinaQaIcyaa ATI maanya krayalaa saaMigatlao jaat Asao AaiNa kaoNatahI doSa AaMtrraYT/Iya naaNaoinaQaI maQyao kja- maagaayalaa jaat Asao %yaalaa jaagaitk baÐkocyaa ATI maanya krayalaa saagaMitlao jaat Asao.Aata yaa ATIMcao Jaalaolao duYpirNaama AapNa pahUyaat. ³1´ calanaacao AvamaUlyana kolyaamauLo Aaplyaa calanaacaI AaMtraYT/Iya बाजारपेठेतील ककां मत KUpca GasarlaI.jasao 1991 maQyao ती 1$ = 18 $pyao अर्ी होती. prMtu toca Aata 1$ = 60 $pyao pya-Mt GasarlaI Aaho. mhNajao 1991 maQyao AapNa 1$ imaLvaNyaasaazI 18 $pyaaMcaa maala inayaa-t krt haotao. prMtu toca 1$ kmavaayalaa saQyaa Aaplyaalaa 60 $pyaaMcaa maala inayaa-t kravaa laagatao. ³2´ AapNa AaplaI daro bahuraYT/Iya kMpnyaasaazI KulaI kolaI karNa Aaplyaalaa p`gat tM~&anaacaI garja haotI. Aaplyaalaa djao -dar maala hvaa haota jaao Aaplyaa doXaat imaLt navhta. bahuraYT/Iya kMpnyaamaULo Aaplyaalaa djao-dar maala kmaI ikMmatIt imaLalaa ho Kro Aaho. prMtuÊ ih gaaoYT Kup kmaI idvasa iTklaI. bahuraYT/Iya kMpnyaaMcao ekca QaaorNa haoto to mhNajao Aaplyaa doXaatIla GargautI ]dyaaoga (Domestic Industry) naYT krayacao. yaa QaaorNaasaazI bahuraYT/Iya kMpnyaaMnaI Aaplaa maala KUp svastat ivaklaa. त्यामुळे BaartIya maalaalaa kaoNaIhI vaalaI ]rlaa naahI. yaamaQyao KUp BaartIya ]dyaaoga ektr naYT Jaalao ikMvaa bahuraYT/Iya kMpnyaaMnaI to ivakt Gaotlao. mauMba[-t kapD igarNyaa baMd pDNyaamaagao hoca mau#ya karNa haoto. bahuraYT/Iya kMpnyaaMcyaa jabardst BaaMDvalaapuZo BaartIya kMpnyaa iTkava Qa$ Xaklyaa naahI. Parle-G kMpnaInao Aaplyaa laaokip`ya Thums Up ba^`MD Coca-Cola kMpnaIlaa

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

49

ivaklaa. TaTanao saud\Qaa Aaplaa laaokip`ya Lakme ba^`MD Hindustan liver laa ivaklaa.Asao k$na k$na bahuraYT/Iya kMpnyaaMnaI AaplaI Cotton Industry, Electronic Industry, Tele-Communication Industry Aaplyaa tabyaat GaotlaI. ³3´ 1991 pUvaI- Aaplyaa doXaat GargautI ]dyaaogaaMnaa सरकारी saMrxaNa kvaca haoto. prMtu 1991 naMtr sarkarnao GarGautI ]dyaaogaaMnaa idlaolao saMrxaNa hLUhLU kmaI kolao. %yaamaULo Aaplao ]dyaaoga bahuraYT/Iya kMpnyaaMpUZo iTkava Qa$ Xaklao naahI. Aaplao ]dyaaoga bahuraYT/Iya kMpnyaaMnaI ektr ivakt Gaotlao ikMvaa naYT Jaalao. ³4´ 1991 pUvaI- kaoNatIhI AaMtraYT/Iya kMpnaI Aaplao ]dyaaogaat gauMtivalaolao Baaga–BaaMDvala kaZU Xakt navhtI. karNa jar BaaMDvala kaZlao Asato tr ]dyaaoga baMd pDUna kamagaaraMvar baoraojagaaircaI ku–haD kaosaLlaI AsatI. prMtu 1991 naMtr kaoNatIhI kMpnaI kovha pNa AapNa gauMtivalaolao BaaMDvala Aaplyaa doXaatUna dusa–yaa doXaat ivanaaADqaLo GaovaUna jaa} Xakto. %yaamaULo KUp AaMtrraYT/Iya kMpnyaa jar %yaaMcyaa gaRhdoXaat jar taoTa sahna kravaa laagat Asaola tr Baartat Jaalaolaa nafa %yaaMcyaa doXaaMt pazivat Asao. %yaamaULo Baartat nafa kmavaUna KUp ]dyaaogaQaMdo nafa kmaivat AsaUnasaud\Qaa doXaacyaa baahor gaolao. karNa AaMtrraYT/Iya kMpnyaaMnaa %yaaMcyaa doXaat Jaalaolaa taoTa Ba$na Aayat inayaa-t ³Aayat¹inayaakaZayacaa haota. yaa jaacak ATIMmaULo KUp doXaaMcaI Aqa-vyavasqaa par QaULIsa imaLalaI. Aata maI AapNaasa dixaNa kaoiryaaÊ t´ In crores In crores qaayalaÐDÊ [MDaonaoiXayaa yaa AaiXayaa[- doXaaMcaI AaiNa la^TIna AmaoirkotIla ba`aJaIla yaa doXaat GaDlaolaI sa%yapirisqatI In crores saaMgat Aaho. dixaNa kaoiryaanao AaMtrraYT/Iya naaNaoinaQaI AaiNa jaagaitk ba^Mkonao jasao saaMigatlao tsao kolao. % 1950-51 608 606 -2 yaacaaca pirNaama mhNaUna dixaNa kaoiryaacao gaRh]dyaaoga AaMtrraYT/Iya kMpnyaaMcyaa tabyaat gaolao. dixaNa kaoiryaat 1990-91 43193 32558 -10635 sarkarI maalaikcao ]dyaaogasaud\Qaa AaMtraYT/Iya kMpnyaaMnaI ivakt Gaotlao. ho sagaLo 1991 pasaUna saat – Aaz vaYa1998-99 178332 139753 -38579 caalaU raihlao. %yaanaMtr jaovha dixaNa kaoiryaacyaa raYT/ptInao saat–Aaz vaYaa-t jao doXaat GaDlao %yaavar saMsadomaQyao 1999215236 159561 -55675 ek p`gatIpustk tyaar krNyaacao zrivalao. hI GaaoYaNaa Jaalyaacyaa tInaca idvasaanaMtr dixaNa kaoiryaacao Stock Exciting mhNajaoca rao#yaaMcyaa KrodI–ivaËIcao koMd` pUNa-t: ]d\Qavast Jaalao. XaoArcao Baava eovaZo 2000 kmaI Jaalao kI ivacaa$ naka. jaovha saMsadomaQyao p`gatIpustk tyaar Jaalao tovha kLalao kIÊ ]%pnnapoxaa kja2000-01 230873 203571 -27302 AaiNa vyaajaca jaast Aaho. %yaamaULo %yaaMnaI pUNa- doXa idvaaLKaor mhNaUna jaaihr kolaa. %yaaMnaI pUnha ekda kja2001-02 245200 209018 -36182 maaigatlao tovha jaagaitk ba^Mkonao pOsao idlao prMtu dixaNa kaoiryaacao pUNa- National Assets mhNajaoca raYT/Iya 2002-03 297206 255137 -42069 saMp<aI svat:kDo gahaNa zovalaI. ekp`karo tao doXa jaagaitk ba^Mkocaa gaulaamaca Jaalaa. [MDaonaoiXayaanao pNa dixaNa 2003-04 359108 293367 -65741 kaoiryaa saarKoca kolao.%yaaMcao calana Rupiah Aaho.%yaaMnaI Aaplyaa calanaacao KUp BayaMkr AvamaUlyana kolao.

2004-05 481064 356069 -124995 jaovha %yaaMcaI Aqa-vyavasqaa pUNa- ]d\Qavast JaalaI tovha %yaaMcyaa calanaacaI ikMmat AMdajao 1$ = 70,,000 Rupiahs haotI. 70,,000 poxaahI kdaicat KalaI gaolaI haotI. saQyaacaa roT (8-12 -2013) caa roT 1$ = 11962 Rupiahs Aaho. qaayalaÐD pNa kjaa-maQyao par DUbalaa haota. jaovha qaayalaM^MDcyaa पांतप्रधाना​ांनी kLlao kIÊ Aaplyaa doXaamaQyao Asao kahI naahI jao ivakUna AapNa Aaplao kja- AaiNa vyaaja dovaU XakU. tovha त्या​ांनी saMsadomaQyao dohvyaaparalaa svat:cyaa doXaamaQyao कायदे र्ीर दजाव दे ण्याची आश्चयवचककत GaaoYaNaa kolaI. AaiNa त्या​ांनी BaartasaazI ek baud\iQamaana ivaQaana kolao , kI Baartanao lavakrat lavakr jaagaitkIkrNaacao BaUt Aaplyaa Dao@yaatUna kaZUna Takavao naahItr Aamacyaapoxaa BayaMkr pirisqatI Baartat inamaa-Na hao[-la. qaayalaÐDsaar#yaa doXaava$na tumhI AMdaja GaovaU Xakta kI kaya Jaalao Aaho %yaa doXaamaQyao . ba`aJaIlamaQyao pNa kahIXaI AXaIca pirisqatI AaoZvalaolaI. prMtu tovha itkDcyaa raYT/ptInao ek dmadar pa}la ]calalao %yaanao jaagaitkIkrNaamaULo AapNa iktI kja- Gaotlao AaiNa iktI vyaaja idlao yaacaa ihXaaoba kolaa. tovha %yaacyaa laxaat Aalao kI kjaa-poxaa tIna pT r@kma vyaajaacyaaca $pat idlao Aaho. tovha %yaanao AaMtrraYT/Iya naaNaoinaQaIlaa kja- AaiNa vyaajaacaI r@kma dyaayalaa manaa[- kolaI. tovha saMpUNa- jagaat त्या​ांच्यार्र टीका JaalaI. prMtu त्या​ांनी स्पष्टपिे सा​ांर्गतले kI maaJyaa doXaanao kjaa-poxaa tInapT jaast r@kma AaMtrraYT/ Iya naaNaoinaQaIlaa idlaI Aaho त्यामुळे

vyaajaacaI r@kma maI tumhalaa doNaar naahI. jar Amaoirkolaa AaË,maNa krayacao Aahot tr to k$ Xaktat. prMtu Amaoirka ba`aJaIlalaa kahI k$ Xaklao

naahI karNa Amaoirkocyaa ]dyaaogaQaMdyaasaazI jao AavaXyak p`aqaimak ]%padna (Primary Product) haoto to ba`aJaIla AaiNa %yaacyaa र्ेजारील ba`aJaIla AaiNa %yaacyaa र्ेजारील

doXaakDUna Amaoirkolaa imaLt Asao. jar

raYT/avar AaËmaNa kolao tr p`aqaimak ]%padnaa ABaavaI saMpUNa- AmaoirkotIla ]dyaaogaQaMdo baMd pDlao Asato. %yaamaULo Amaoirka AaiNa AaMtrraYT/Iya naaNaoinaQaI

gaPPa basalao.hyaa sagaLyaa doXaaMcaI JaalaolaI pirisqatI pahta jaagaitkIkrNaamaULo jaast fayada kovaL ivakisat दे र्ा​ांनाच Jaalaa Aaho. BayaMkr taoTo ivaksanaXaIla AaiNa gairba raYT/aMnaa Jaalao Aahot.Baartanao yaamaQyao ekca gaaoYT caaMgalaI kolaI tI mhNajao yaa ATI hLUhLU Baartanao laagaU kolyaa.jar Baartanao yaa gaaoYTI dixaNa kaoiryaap`maaNao vaogaanao laagaU kolyaa Asa%yaa tr Aaplaa doXa saud\Qaa Aaja हदर्ाळखोरीत gaolaa Asata. saQyaa Aaplyaa doXaalaa prkIya calana,, , , , poT/a oilayama pdaqaa-Mvar mhNajaoca poT/aola,, Ê iDJaolaÊ ga^sa [%yaaidMvar Kca- kravao laagat Aaho. poT/aoilayama pdaqaa-Mcao Baava AaMtrraYT/Iya baajaarat gaganaalaa iBaDlao Aahot. %yaacao Baava vaaZlyaamaULo AnnaQaanyaaMcao Baavasaud\Qaa gaganaalaa iBaDlao Aahot. jaagaitkrNaamaULo BaartIyaaMmaQyao Baaoga ivalaasaI vaR<aI vaaZlaI. ivanaaAavaXyak gaaoYTIvar Aaplaa Kca- vaaZlaa AaiNa yaa ivanaaAavaXyak vastU prdoXaatUna Aayaat kolaolyaa hao%yaa. mhNajaoca pOsaa Aaplyaa doXaatUna baahor gaolaa. 1991 maQyao bacatI maQyao (Domestic Saving) Baart jagaat dusa–yaa ËmaaMkavar haota.haca dr Aata kmaI kmaI haot Aaho. सध्याचे Aaplao पांतप्रधान mhNaalao kI poT/aoilayama pdaqaa-Mp`maaNao [lao@T/ a^inak vastUMvar baroca calana Kca- haot Aaho. jar Asaoca caalaU raihlao tr 2020 pya-Mt Baartalaa 30 kaoTI Da^larpoxaa jaast prkIya calana Kcaa-vao laagaola. %yaamaULo Baartalaa far maaozo nauksaana saaosaavao laagaola.iXavaaya Baartanao ek KUp maaozI caUk kolaolaI Aaho tI mhNajao maa^irXasa sarkar baraobar Jaalaolaa krar. 1983 maQyao Baart sarkarnao maa^irXasa sarkar saaobat maO~IpUNa- saMbaMQa sqaaipt krNyaasaazI “Double Taxation Avoidance Treaty” naavaacaa krar kolaa. yaa kraranausaar BaartatIla naagairk maa^irXasamaQyao jaa}na itkDo ]dyaaogaQaMdo sau$ k$ Xaktat. maa^irXasa sarkar BaartIya ]dyaaogaptIkDUna kaoNatIhI kr vasaUla krNaar naahI. tsaoca maa^irXasamaQaIla ]dyaaogaQaMdo Baartat yao}na vyaapar k$ Xaktat. %yaaMnaa BaartamaQyao kaoNataca kr Aakarlaa jaaNaar naahI. yaa kraracaa gaOrfayada bahuraYT/Iya kMpnyaaMnaI Gaotlaa. %yaaMnaI BaartamaQyao sarL ]dyaaoga ikMv aa kMpnaI sqaapna na krta paihlaI maa^irXasa maQyao kolaI AaiNa toqaUna qaoT Baartat Aaplao ]dyaaoga sqaapna kolao. BaartIya naaoMdInausaar %yaa kMpnyaa maa^irXasa maQaUna Aalaolyaa AsalyaamaULo Baart sarkar %yaaMcyaakDUna ekhI pOsaa kr mhNaUna Jaalaolyaa kraramaULo vasaUla k$ Xakt naahI. %yaamaULo bahusaM#ya AaMtrraYT/Iya kMpnyaaMnaI yaa kraracaa gaOrfayada Gao}na kraoDao $pyao BaartatUna kmavaUna doXaacyaa baahor gaolao. KalaI Baartacyaa Aayat–inayaa-tIcaa t@ta Aaho. % yaamaQyao spYT idsaUna yaoto kI BaartacaI Aayaat inayaa-tI poxaa naohmaI jaastca haotI. Baartacyaa Aayat–inayaa-tIcaa t@ta:-

Suneet Sumant Herekar

I am currently pursuing my diploma from Welingkar Institute in Financial Management and have some years of experience working as a computer trainer.

PAGE

Student Insights and student experiences working at the grassroots .

In our shoes

The Economics of (Self) Development

ship, they basically take on the offer of entering into an under -resourced classroom in order to bring about measurable growth in the students of the class.

It would be far from the truth if I told you that Teach For As I write this, I am completely India is a teaching fellowship. ignoring your present circum- Fellows do spend majority of stances, your belief systems and their team teaching, but it much more. What I am really really comes down to the counting upon is your passion, your methods they use, the reambition to create systemic sources they are able to change and your resolve to keep generate and the relationat it when given the canvas. ships they build in and outside of school. The FelBackground lowship thus is not for people I am sure a lot of you would who merely want to teach, it have heard about an organisa- is for people who are willing tion called Teach For India. No to work in every corner of a it is not the Times of India ini- problem in order to solve it. tiative that you read about in the paper (that’s Teach India).

This is a four year old organisation that aims to solve the problem of educational inequity that exists within our country today. Just to give you a brief perspective, out of the 320 million kids in India, 4% never see a classroom and 90% never go beyond 10th. So the fact that you are reading this article probably puts you in the 10% that actually goes beyond the 10th.

Coming to the organisation, its mission is to create a pipeline of leaders that will work towards solving the problem of educational inequity through many systems and many different entry points. In order to facilitate the creation of this leader, Teach For India brings its “Fellowship Program” forward. This program is a twoyear full-time commitment or rather a journey that an individual embarks on in order to create impact and also to create space for self-development and self-transformation. When an individual takes on the fellow-

HOMOECONOMICUS

(Source : http:// www.flickr.com/teachforindia) Why should you not take on this glorious adventure?

Don’t do it for the base 17,500 stipend they offer (there is an additional housing allowance).

Don’t do it for the brandbuilding on your resume (it is part of a larger network called Teach For All that with about 30 country members like Teach For America, etc.).

Don’t do it if you feel that this

50

is a good place to meet other engaging and adventurous people who are driven by the same cause.

Actually it is okay to do for these reasons if your main agenda is to work towards solving the limitations of the educational system in our country and to make yourself the fearless and transformational leader that our system will always require.

If you don’t want those children’s lives to be decided and limited once they enter between those broken walls, then take this chance. And don’t worry you will have a solid two-month summer training to bank on and constant support from the organisation in order to keep

moving forward. At the end of the two-years you will become an individual that you yourself will be proud of.

You won’t focus on the trivialities of life because you never really did anyway.

However, you will be more sure of your desire to be part of the change that you want to see and whether you stay on with Teach For India as a part of the strong staff team or move on to other organisations and institutions, you will be a brick that is

VOLUME

1,

ISSUE

1

helping to build our country in a sustainable way. Teach For India is present in 6 cities now and aims to keep expanding. The next deadline to apply for the Fellowship is February 5th and you can do so by going on the website. You do have to be in your final year to apply for the Fellowship but there are many other ways (Campaign Leader Role, Internships, and Volunteering with Fellows) through which you can become part of this movement as well.

That’s why they pay me the big bucks You must be wondering about the basis on which I have said all this about the organisation. Well to begin with I volunteered in a Teach

Papa kahathey hain

PAGE

For India Classroom for two years.

This classroom didn’t turn me into a leader as much as it made me understand the importance of leaders. If we leave the education system in the place it is, it will continue to cater to our worst fears and we will continue to have something to talk about at dinner parties.

I want to be a part of a movement that strives to bring in quality, bring in that impact-oriented attitude as well as the drive to start from the bottom. I am also a two-year Campaign Leader of Teach For India in Jai Hind College and my role is to encourage final year graduates who have displayed leadership skills and an intent to add value to apply for the Fellowship.

51

If you are someone who is not sure if the Fellowship is for you, then make an effort and try to know more about it. As I always say, “Don’t be afraid to count something out, but just don’t be ignorant about it”.

To know more visit: www.teachforindia.org Contact Author at: Siddhant Sharma -

1,

ISSUE

1

The 5 theories of Intern

H

ello Reader! How is your existential crisis going? Good?

Okay!!

Now, if you have just turned 20, then the chances are that you are learning what every button on a printer stands for, and what flavour chai gets you high, amongst other things. This, coupled with a lot of mindless reading is defined by no particular dictionary as “internship”. You will keep telling yourself that you are learning something every day, till one evening, you realise that the little blob inside the hollow of your skull is the decayed remains of your brain and decide to open a beauty parlour, like Zohan, so you can follow your true calling.

However, until that psychedelic moment, if your internship pays you (like mine does), you are experiencing intense feelings of “being da man”, a.k.a “mom, dad, I got this”. Oh the boundless pride and joy in your parents eyes when you offer to buy them that second plate of Pani Puri!!(Which they end up paying for, anyway, because it is the thought that counts). Anyway, my point is that intern money (read: peanuts) suddenly gives you a highreaching edge. See, as Abraham Maslow relentlessly pointed out during many afternoon lectures (as the heat threatened to assassinate us), man has many different types of needs. Our dear biological parents (for lack of proof otherwise) have kindly taken care of food, clothing, shelter, mobile phone, laptop, wifi, braces and monthly parlour trips, hence, our basic needs are…sorted! Which means that every paisa we now earn, is ours to do as we please *insert evil mandark laugh* And what does this entail? Let the countdown begin!

1. The Brand Bitch: Now that you have so much extra paisa paisa (in spite of the seasonal global meltdowns), you find yourself with a cardigan from Vero Moda that makes no sense given your proximity to the equator, but which nevertheless

HOMOECONOMICUS

PAGE

settles well in your wardrobe. If you are one of those who are not tempted to make at least one such purchase, then just don’t judge okay.

2. The Resentment: After every single purchase you make, you will wallow in the bottomless pool of dud, regretting every single one of them. You will think of all the iPhones you could’ve bought if only you had had the wit to wait for 24 more months!! Or the number of hungry people you could’ve fed by donating that money, and then you proceed to solemnly wow to put 10 % of your monthly stipend into an RD account.

3. Show off: First row tickets to some god-onlyknows awesome concert? Count me in! A weekend trip to Goa? You had me at “a”! You are now financially independent to buy your own weed or go to the most happening clubs and pubs without having to search for change in the murky nooks of the sofa or by offering to go vegetable shopping so that you can “pocket” the change. In other words, you now have a life (as most people would call it).

4. Slog Slugs: (Source: http://commons.wikimedia.org/wiki/ File:Monkey-accordion.jpg, Author: None)

VOLUME

In spite of being an intern, you find yourself with less and less time for anything but intern work. Now, this confuses most of us because we have no idea what we do throughout the day and yet it seems to pass like a fast train from Kurla to Dadar (while you are standing at Matunga). This is actually good for the spendthrifts because it means the months pass before any plans materialise and hence you find yourself that much

52

richer.

5. Cheapda Friends: Every person who does a paid internship has at least five friends who don’t, but who are creepily aware of how much you make and even calculate a per hour rate. These are the people who would have monthly anniversaries for everything in YOUR life, as an excuse for draining the remains of your bank account whilst unselfishly showering you with best friend mugs and deodorants. *The views expressed in this article are the author’s and the author’s alone and she makes no particular promise to answer any hate mails. Any resemblance to people or circumstances is not fictional, because the author can’t write like Dr.Seuss….yet.

Deepthi Rajan. She is a corpo-

rate intern by day and a renegade..well sleepy person by night. However the online (printable) certificate in "being a ninja for dummies" allows her to volunteer at MAD (Make a Difference) every weekend. In her free time, she charges her phone. She wishes she were a unicorn and only takes selfies on #selfiesunday.

VOLUME

1,

ISSUE

1

Bank Nationalizationa Practitioner’s Sights and Insights

I

was a student of Ruia College and passed M.Sc. in 1973 with flying colours. I was also an active member of National Service Scheme (N.S.S.) and played a leading role in organizing college students’ camps in tribal area of Thane district. We used to dig ‘surface wells’ in the fields of tribal farmers, to create the facility of ‘protective irrigation’ for paddy (rice) crop , under the auspices of Nav Nirman Nyas ,a public charitable trust (NGO). After my post graduation, I opted to work as a full time volunteer of this NGO in Manor Tribal Block for 2 years.

There I participated in development programs for the benefit of tribal farmers, under the guidance of a renowned social worker- The late Shri Aba Karmarkar.

Status Quo Ante Prior to bank nationalization, the tribal farmers never had any access to organized credit. On the contrary they were compelled to borrow from usurious money lenders to raise their only paddy crop in the rainy season. Many of them had to borrow one bag of grains, say Jowar for their own consumption so that they could cultivate paddy crop in the month of June (at the time of onset of monsoon) and had to repay 6 bags of rice in November (after the crop was harvested). Rate of interest worked out as high as 1200 % per annum! We approached Bank of Maharashtra, a bank nationalized in 1969. The bank agreed to give loans to small and marginal farmers who were members of “Shetkari Mandal”; a registered society office, the bearers of which were tribal (Adivasi) farmers who were literate (could read and write). The Bank extended consumption loans to them (This type of loan was called ‘Khavti karj’ by tribals).

PAGE

Earlier there were no instances of giving any such loans by any bank to such neglected sections of society. It was a commendable act on the part of Bank of Maharashtra to take this initiative in financing small and marginal tribal farmers. A private bank could not have extended such type of financial assistance at all because this venture was not profitable. One of the objectives of bank nationalization was to bring these hitherto underprivileged sections of society in the fold of banking which was implemented by Bank of Maharashtra with the help of our NGO. My Beginnings and Observations I belonged to a lower middle class family. In spite of the fact that I was required to earn to supplement my family income at the age of 22, my father was kind enough to allow me to work as a volunteer in tribal areas for 2 years from 1973.

Thereafter I badly needed a job. I passed the officers’ examination which was conducted by Bank of Maharashtra. In view of my experience of having worked in tribal areas, the bank posted me as a rural development officer. After 6 months of probation, I was posted as Chief Executive of Pawana Farmers’ Service Cooperative Society in 1976, specially formed to cater to the financial needs of marginal farmers and also agricultural labourers.

The area of operation of this society was 24 villages in command area of Pawana Dam near Kamshet (Pune). The members of this society used to raise only paddy crops in a year, that too only in Kharif season. Irrigation facility was made available through the lift irrigation schemes of Govt. of Maharashtra. However, this facility could not be utilized by the poor farmers to the full extent, because of non- availability of credit facility for purchasing seeds of HYV (High Yielding Varieties) of paddy like IR 8, Taichung etc.

Nascent Reforms The climate of Pawana valley being conducive for wheat crop in Rabi (winter) season (A ‘Wheat Pilot Project’ was also implemented by providing seeds of HYV ‘Sonalika’ wheat. After harvesting wheat crop, some farmers cultivated “Vaishakhi Moong” (a leguminous crop) as a third crop

53

(Paddy in Kharif season, wheat in Rabi season and short duration crop of Vaishakhi Moong in summer).The seeds, fertilizers and pesticides needed for all these crops were supplied on credit to the farmers by the Farmers’ Service Society of Bank Of Maharashtra. It also financed dairy activities which were complimentary to cultivation of crops. Old farmers who could not work in fields could engage themselves happily in rearing of cattle. With this additional income, many marginal farmers could replace grass roof- tops (“Gavatache Chhappar”) of their houses by ‘Mangalore tiles’.

This could be possible only due to timely availability of credit, that too at affordable interest rates. Needless to add that the farmers were quite happy with my team. Most of them responded to our efforts for recovery of loans. In fact they were very much dismayed upon my transfer to Ratnagiri district head quarter a semi urban place in 1984. But, getting transferred is a part of life in bank service, and I accepted this with an open mind and promptly reported to Ratnagiri and participated in implementation of banking schemes there.

Progressive Policies At the Regional Office of Bank Of Maharashtra in Ratnagiri, I worked as a credit officer and was looking after financing small scale industries. Our Bank financed activities like, cashew processing units, mango pulp canning units, and Amrit Kokum Sharbat manufacturing units which were engaged processing of horticultural produce. There was hardly any financial assistance extended by banks to such units before nationalization. Staff members in our Regional Office and branches were taking keen interest in the recovery of these loans .The borrowers in Ratnagiri Region, by and large, were quite responsive and had a habit of prompt repayment which I could observe during my tenure there.

Key learnings and Takeaway Process of development has three

VOLUME

1,

ISSUE

1

PAGE

(Source : http://commons.wikimedia.org/wiki/File:Bank_of_maharashtra_bldg_tulshi_baug_bajirao_road.jpg, Author : Niraj Suryawanshi)

dimensions- social, economic and political. In the process of economic development, we have to ensure that the fruits of progress reach all sections of the society .Only then can we ensure stable development with least social tensions. There should also be ‘political will’ to take decisions like that of nationalization of banks. Banking systems are subservient to the economy. There-

E-econ

HOMOECONOMICUS

fore, the opening of thousands of branches in hitherto unbanked areas of our country resulted in deepening of financial markets which has had an impact on the overall economic development. This was possible only due to bank nationalization.

Lastly, after working for more than 35 years in Bank of Maharashtra, I would like to stress that success of any decision like that of bank na-

54

tionalization depends on implementation of objectives. The bank executives at higher –echelons, who take policy decisions in head offices, and also the bank officers who implement the schemes at grass root levels have to be proactive. The role of branch level officers is significant as they have to take lead to evoke participation of customers who are beneficiaries of various schemes .We experienced that we could do it.

The author, Dilip Prabhakar Joshi, has worked for more than 35 years, at the renowned Bank of Maharashtra, as the assistant General Manager.

VOLUME

1,

ISSUE

1

All Aboard Learn Abroad Nowadays, we are seeing changing trends when it comes to education.

Parents feel more secure about their child’s future if he/she completes a year or two studying abroad. One reason being that they want their children to settle abroad and the other, to add credits to their curriculum vitae. This may consequently lead to better job opportunities and of course higher pay-valuation once they return.

Here is where my story began...

After completing graduation my parents felt it was better for me to study abroad not only for the reasons I have mentioned above but also, they actually wanted me to learn how to live life independently and responsibly. So, with immediate effect the search began and within two months it was decided that I was going to the University of Essex to study Masters in Management Economics for a year.

Getting to Business The course which I selected was new to their curriculum so it added an extra excitement as well as made me nervous. It was a combination of Management and Economics, two of the important aspects of business. The idea behind this course was for students to understand how economics is being/could be used in managerial decisions along with analyses of firm interaction. This course was designed in such a way that students, after completing it successfully, would be able to not only discuss the economic theories in business contexts, but also put to use economic research, communication and managerial modeling at tandem with one another. This bit of explanation was enough for me to opt for this course and I went ahead with the decision.

My core module, Economics of Organisational Method, made me understand how the incentive theory or the contract theory would apply to the real world management. The

PAGE

55

other core module, Theory of studies or fewer party nights, my Industrial Organisation, was very main aim was to bring my focus much linked to the above menback and not let what had happened tioned module explaining how previously, affect me in the negative firms would strategically interact way. in different market structures Adding the P to the G keeping in mind their profitability..

As they say, time flies by and it The rest of the modules were surely did! I was now a Post Gradustandard postgraduate-level Micro ate in Management Economics. It -economics, Math and Statistics evoked a strange feeling in me, I (which helped brush up economics was definitely proud of myself but, knowledge with developing matheat the same time my mind was ocmatical techniques), Trade and cupied with many thoughts. ‘What development, and Economic develnext?’ was a constant question! opment theory (theory topics The journey from a Graduate to a based on recent developments in the trade industry and the latter explaining several developmental theories). Last but definitely not the least was the Dissertation which took up the final few months of the course.

Re(Sources: http://commons.wikimedia.org/wiki/File:University_of_Essex_sponsible! _North_Towers.png Author: Goosta) Knowing that this curriculum had to be surpassed in a year meant a Post Graduate is an experience real tough time and hard work worth having. I learnt that studythroughout the year. I would ing the subject in depth is one surely not like to omit mentioning aspect but we should also be how reckless and lazy I was in the aware of other aspects such as first three months of my course time management, developing (which, let me forewarn you, dida theory into an answer, not n’t help my cause). The other relosing focus, when you are strictive force was my inability to alone in a different part of the adjust to the curriculum pattern. world, learning to be truly It was different and it was dif‘Responsible’. ficult. Eventually I got the worst grades and really had my back to Adwait Bhaskar Aras the wall by Christmas. I felt alone He believes that expressing the thoughts running through and hapless but then suddenly a one’s mind is a very tough thought travelled across my mind, job. “But don’t worry you definitely have something to I was beginning to understand share.” By nature he is a what my parents meant when they normal guy who likes to keep said I had to be responsible. After everyone happy and spread positive energy around. The the vacations, I quickly modified one thing which he feels my studying patterns which would separates him from the others is his Confidence in everything. If you help me get through this tough want to know more or talk or share sometask. Whether it be late night thing contact him on his email id- adwaitaras@gmail.com.

VOLUME

1,

ISSUE

1

PAGE

56

See Through the Glass Ceiling To Break through It “Anyone who lives within their means suffers from a lack of imagination”. – Oscar Wilde.

From being a volunteer in 2009 to growing gradually to become the Chairperson of India's largest financial festival - Moneta, a dream envisaged all through the 4 years of my college life, came true in my final year at my second home - R. A. Podar college.

Over these years, Moneta steadily grew in every aspect with a lot of changes being incorporated in every edition. But one thing that remained constant was the lead being a Chair (MAN). It wasn't easy to break the tradition but hard-work & perseverance do pay in the end. I was aware that every baby step I took at that stage was a leap ahead for Moneta, but I also knew that if I faltered along the way, the platform would be compromised.

Having being unanimously voted as the Chairperson of Moneta 2013, I had this added sense of confidence of heading towards my destination along the right path. It wasn't an easy journey, naturally, a lot of sacrifices had to be made, numerous compromises in several situations and an increased focus towards this led to lesser time being available for anything else, be it family, friends or for myself. I still am referred to as the Chairman because Chairperson or Chairwoman is just not comfortable convention.

As a woman, breaking stereotypes was a challenge. The informal norms of having to spend nights together with the team for meeting deadlines, staying over at each other's places for work or working in college or anywhere else till late at night aren't completely ideal arrangements for a girl in a team of only boys. But what the team learnt this year was that all these prac-

HOMOECONOMICUS

(Source: http://commons.wikimedia.org/wiki/File:India_-_Faces_-_Rural_women_driving_their_own_change_1_ (2229752965).jpg, author: Mckay Savage)

tices can be dispensed with.

These issues which were raised as concerns over me taking the lead soon turned out to be nothing but a mirage created by sexist traditions over the years.

Another task at hand was to regularly inject my parents with a dose of security that I would be safe with people. Travelling unaccompanied across the city for meetings with potential sponsors and speakers for Moneta (who were invariably men), wasn't a very comfortable thought for a concerned mother. She would say "Give me a call once you're meeting begins, don't speak to me but keep the call on for safety." In the wake of all the untoward episodes happening with women, it was only natural that she’d be a bag of nerves.

It is a universal fact that women tend to have more empathy than men. When a woman is leading a team, the team is likely to be happier given that a woman has the ingrained ability and capacity to ‘listen’ to her entire team and act upon them, be it a personal issue or professional.

The glass ceiling is now slowly, but surely, being shattered by women.

Today, women are moving shoulder to shoulder with men. Women

have now mastered the art of fulfilling their dreams while efficiently coping with traditions and stereotypes which cannot be fragmented at this point due to their having become norms eventually. Women sarpanches are making themselves heard even with ghoonghats on.

Thomas Jefferson quoted, "Never spend your money before you have it." Women abide by this even without being formally trained to do so.

Give any homemaker`Rs1000 and ask her to run the house for a month, she will end up saving Rs 200 for the next month while adequately satisfying her family’s needs ,in the current month. Magnify this to a larger context and it results in a 20% profit for her stakeholders with no liabilities created in the form of debt. Handover a company along with its financials to a woman and she will run it in the most optimal manner to achieve all her targets (with near zilch compromises) and quality deliveries, having done complete justice to the costs.

Admittedly, today there is awareness about women and inclusion.

Gender diversity is now a priority.

Passion, ambition and aggression are more male traits, but women have a different kind of aggression which can be more covert

VOLUME

1,

ISSUE

1

and detail-oriented. This is the fine balance that companies are targeting presently.

The likes of Chanda Kochhar (MD, CEO ICICI Bank),Usha Ananthasubramanian (MD, BharatiyaMahila Bank, the first all-women bank), Naina Lal Kidwai(Country Head and GM, HSBC India and Head of FICCI), Kalpana Morparia(CEO, JPMorgan Chase & Co), and many more have proven that the glass ceiling is moving faster and faster to its inevitable shattering. Not only have they occupied the top positions in various leading organizations but have also graduated to becoming the faces of their respective organizations.

Studies have inferred that the turnover rate of women is always low on a relative basis. This is a strong indicator of their job engagement, ability to commit and stay dedicated to an organization. However, the main reasons for the rare turnover are generally either her husband being transferred profes-

Lean whichway?

PAGE

sionally to a different geographic location or some travel issues concerning their children’s schooling.

This again, is an alarming indication that women continue to remain family-centric and tend to consciously forego their ambitions to accomplish those of their family members.

According to me, given my experiences and the stories of the numerous successful women across the globe, if you can peer through the glass ceiling, you can easily break through it!

(Post Script by Editor: The author was awarded “Event Manager of the Year” by the National Institute of Event Management (Asias best and World’s third best Event Management Institute) and Afternoon (The Logistics Company and Newspaper)

57

am Divya Venkataraman, a creaI

tive Chartered Accountant in the making, pursuing Third Year B.Com from R. A. Podar College of Commerce & Economics, also a member of the Shadow Editorial Board of DNA. Email id: divyavenkataraman07@gmail. com

VOLUME

1,

ISSUE

1

PAGE

58

Every second I spent in London Holding on to it like treasures I knew a little more.

That moment I had thinking Of what I would do if I wasn’t here I knew a little more.

That moment I realised That knowledge was not always Black or white I knew so much more.

That moment we were told To present in groups of four An idea to save education I knew so much more.

Moments at King’s

1

That moment when I received the offer Then I was actually in the air Flying over my city, my life and my world, I did not know then.

And knew all of their names and stories I knew a little.

That moment when I sat in my room Thinking of home And what I missed I knew a little.

That moment we succeeded In presenting an idea From Turkey, Germany and India, I knew so much more.

The moment I realized, I would not use KEATS, Or not see my 39 new friends anymore I knew so much more.

That moment when I saw my family Smiling at me at Heathrow Preparing me for what was to come I did not know then.

That moment when I entered the first session Admittedly confused, overwhelmed Somewhat startled, I knew a little more.

That moment when I entered my apartment Saw its proximity to the campus The Thames just a walk away I did not know then.

The moment I got everyday To compile the thoughts Of every unique mind in the classroom I knew a little more.

That moment when I saw the number Of people from ALL the world over And heard some of their stories I knew a little.

That moment when I saw the library What one could do with knowledgeDocument it, make it available and fun I knew a little more.

That moment I was to leave Saying goodbyes and beginning to feel What I had gained when I was here I knew myself.

The moment I spent remembering

About the courses I took

That moment when I met my tutors Saw the size of my class

That moment I was to leave What was almost a dream, King’s, London and the summer breeze, I knew so much more.

That moment I was in King’s For the last time, Sadly awaited by packing my things I knew so much more.

King’s College Summer School is a 2 week Mumbai based summer school program held by King’s College London. The writer attended the same at Mumbai and subsequently won a scholarship to attend summer school at London. More details about the course can be found here www.kcl.ac.uk/kingscomestoyou or mail india-programmes@kcl.ac.uk

HOMOECONOMICUS

VOLUME

1,

ISSUE

1

PAGE

59

At Mumbai : Media Gender and Culture is a course that encompasses discourse on culture in relation to the role of gender in media and the representations of gender in media. It also questions whether media can be used as a means of activism for gender equality- if yes, how and by whom? A combination of theoretical and practical understanding of concepts such as ‘post feminism’ and ‘intersectionality’ or the ‘rape culture’ are explored in this course. In numerous readings, videos, guest lectures by eminent personalities and experts from the field makes this course truly unique.

There is also an attempt to cover all major media forms- print, television, news, social media and cinema. Adapting the course from its London counterpart, this course uses resources available in the city to promote critical thinking in areas such as media analysis, media and culture in a transnational and international perspective as well as ‘intersectionality’. You will gain not only a deep insight into what your cultural background truly implies, you will also see that much of contemporary media is a representation of our social realities and inequalities which we often are oblivious to.

At London: Education and Neuroscience is a course that comprises that allows one to gain insight into the various approaches to the relationship between education and neuroscience. It also covers methods of doing neuroeducational research and the issues that arise from viewing that the mind as the brain or the brain as the mind. This course also provides a fascinating insight into the history of brain research, including the brain’s development and functions which we can now map thanks to neuroimaging techniques. Within this course we debate the possibilities and limitations of applying neuroscience to education and discuss the educational and ethical questions more widely. Guest lectures and field visits make for an interesting and enriching experience. You will gain an understanding of the status of neuro-educational research and its practicality in a classroom.

-Lady Obsessalot

Challenged ?

PAGE VOLUME

1,

ISSUE

1

60

Homoeconomicus is INCEPTIONed!

HomoeconomicuS is iNCEPTIONed!

In keeping with the spirit of the magazine, this is a (half baked) attempt of objective observation through economic lenses. My muse: Homoeconomicus itself, and the entire rigmarole of bringing it to life!

There are four things the author aims to achieve with this article; 1. Document the results of using behavioural economics to rope in writers, 2. Address some of the ethical dilemmas of working with intellectual property, 3. Deconstruct the student idea-sphere 4. Make sweeping statements about the youth at general.

E-Conning (Contributors, you may want to skip this section. Here, the author discusses the evil ways we tried to Nudge1 you). We used “social norms” as opposed to “market norms” to call for articles. That is, we personally invited students and guests using our own email IDs over and above the usual marketing efforts. Theory dictates that social norms work better with higher expected reciprocity (Heyman and Ariely 2004). This worked too, and we credit the number of articles we received to this very approach.

Secondly, we asked writers to set a deadline for themselves rather than administer one (Ariely and Wertenbroch 2013) . This was in the hope that authors will feel more obligated to the dates they set for themselves. This fell flat on its feet as most writers had other commitments to keep and didn’t feel too threatened by our hard deadlines! Perhaps next time we will customize deadline routines for each author. Behavioural Economics also states that labour leads to love (Norton et al 2011). It is often easier to edit articles by ourselves than to do a back-and-forth correspondence with the author. Intentionally, we adopted the latter approach so that writers could feel more involved. Did we make our writers fall in love with the project? The jury is still out on that!

Ed-ical Dilemmas Plagiarized writings keenly resemble the “market for lemons”. They cheapen the deal. As the “Regulators” in this situation, frankly we lived up to the stereotype of not making laws clear and adapting our reaction on a case-by-case basis. The market for student writings is so deeply flawed even in the real world that it is quite natural that students feel no great guilt pangs in plagiarizing. They do not perceive it as a “costly action”. Think of the incentive structure in place for student assignments; the payoff from writing i.e. grade/points (for quoting better marks in your CV) for CV is often dependant on whether the submission is made rather than how its content was sourced. Secondly, is it really reasonable to expect student to spout original thought on demand of semester submission schedules? We still don’t know what the “netiquettes” of referencing are and surely this magazine too has erred in that. The situation reminds me of Kaushik Basu’s argument for legalizing “the giving of a certain class of bribes” (Basu 2011). I.e. maybe there is no “fault2” on the part of the student community for engaging in plagiarism as much as there is in creating an environment where they are not categorically discouraged/enabled/forced to do so. In all fairness, teachers and college management are quite helpless as well. Purchasing plagiarism detecting software and putting in place an online infrastructure for assignment is a difficult affair. Is it actually worth all the hassle? Think of electric cars, which have recently come under a lot of scrutiny for its “uneco-

1.

2.

See http://nudges.org/ Unless seen in the perspective of an individual’s ethics

VOLUME

1,

ISSUE

1

friendliness”. The claim is that they are not all that good for the environment either, unless we all start driving them and use only renewable sources to produce the electricity3. In short, the efforts have to be at SCALE and MULTIDIRECTIONAL, which is typically the case with any collective action problem.

Same with students and IPR. Till then one wild idea that could work, for our magazine’s next issue, and may be in general is “Peer Review4”. Every writer/student could be asked to submit one entry as well as check another’s’ for academic integrity, anonymously5 Having tried this out with a handful of participants at a college level event, the author was surprised to note and happy to report that peers were extremely kind and resourceful to one another (umm 10/11 participants) despite having a strong incentive to tank one another’s papers/confidence.

Writers Bloc It has been an overwhelming experience to see students’ interest in writing. Graciously, all would accept editions, additions, rejections and most of all, the challenge to ideate! The student idea-sphere is perhaps the most fascinating and inspiring space to be and study. Think of it like an economy where the products are ideas, the production process is “opinion formation”.

Consider the production function P = f (N, L, K, T) Where, Land = Cafes, canteens, campus, virtual forums...∞ Labour = Classmates and extended student community...∞ Capital = Teachers, Internet and Library....∞ Technology = MSOffice, Facebook, Twitter....∞ Demand = Opportunities, Competitions and Credit based Assignments....∞ This economy suffers from one LARGE problem. Resources are actually INFINITE. And thus optimal allocation is even more daunting, more intimidating than in the case where resources are limited. We just don’t know how far to go with anything!

P = f (N?, L?, K?, T?) The consequence?

1.We tend to worry and subsequently ideate about issues popularized by popular media (internet), which in turn is a function of what readers like to read about.

For example, it may just be that inflation is not as important as the fact that we still haven’t stopped using plastic bags!

2.We over reference. Having been intimidated by the

PAGE

61

expertise out there already, scared that our idea can’t stand alone (This article is a case-in study).

3.We do just enough for the grade/credit/publication in magazine 4.We’ve become over-dependent on the internet to write 5.We don’t know whether it is better to be multidisciplinary or as specialized as possible?

The best part of this all is that students are not oblivious to this information overload. And that’s why they have become more proactive, going to the grassroots themselves, volunteering, interning and working their ‘buts’ off to form their own opinions, their own insights. But what does economics dictate? (Fighting the urge to Google “economics of infinite resources”) perhaps we need to create an artificial scarcity so that we optimize what we do have. No internet on some days6, no teacher’s help on others, no MS spell check once in a while and finally ideation for no good reason.

Scatter Brains We are scatterbrains and scatter brains are we, We see too much, read too less, try to do too much, eat too less, But in the madness, what we remain, Is ready to be inspired, influenced, Ready to be moved and pushed and moulded Willing to hear each other out, argue, fight, discuss And shamelessly procrastinate But in a sense, what we remain Is the best hope for the madness.

A perfect Economic Asset.

Bibliography Ariely, Dan, and Klaus Wertenbroch. "Procrastination, deadlines, and performance: self-control by precommitment." Psychological Science, 2013.

Basu, Kaushik. "Why, for a Class of Bribes, the Act of Giving a Bribe should be Treated as Legal." Finance Ministry of India, 2011: http:// finmin.nic.in/workingpaper/act_giving_bribe_legal.pdf .

Heyman, James, and Dan Ariely. "Effort for Payment - A tale of two markets."

Psychological Science, 2004.

Norton, Michael, Daniel Monchon, and Dan Ariely.

"The 'IKEA Effect': When Labor Leads to Love."

Social Science Research Network, 2011

Melony Snickette7 and Les Editrix Extraordinaires!

3. See http://www.huffingtonpost.com/jason-haraldsen/electric-cars-its-not-eas_b_3552429.html 4. The author credits this idea to the awesome world Massive Open Online Courses!

5. Of course the risk of collusion lingers, but perhaps, just perhaps the social pressure (to prevent your classmate from naming and shaming your assignment) may pull through.

6. The author credits this idea to friends who have described how de-toxifying it is for the mind, to go without internet and a phone.

7. Inspired by Lemony Snicket