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Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Wednesday, September 23, 2020

Leading the Lamb to the Slaughter

Free-market systems mimic nature. In that, the big fish will, naturally, eat the small fish. Because they can. If left to itself, the system will result in a power struggle of the economic kind, which also spills into the social domain. Those who gain power are, again naturally, inclined towards retaining it and growing it through unending acquisitions. Why would they reduce it voluntarily and risk extinction?

Sunday, June 23, 2019

Why People Are the Next Big Tech


Our age is swamped with technology. 


From robotics to smartphones; from e-rickshaws to international space stations; from CRSPR-Cas9 to Solid State Drives. Human ingenuity and science are being rapidly encapsulated in complex algorithms and packaged into dense devices and executive routines. Governments and corporations are ramping up R&D budgets to create or acquire the next big technology, like with AI, Data Science, and Machine Learning.

Monday, November 26, 2007

Kickback Grandé

When it comes to the sheer scale of corruption, we Indians are nothing short of nanobots. Western nations exist at the scale of Diplodocus Giganticus! Poor Rajiv Gandhi got bludgeoned for a measly 64 crores of Indian Rupees and the ghost of the Bofors Scandal has never left the tail of the Congress party. Fortunately for them, corruption in India has risen like the inflation and the Dearness Allowance paid to Central Government employees. 600 crores of Lalloo's is a benchmark now. But the UP bureaucrat who got caught recently is insisting on putting all politicians to shame. I kinda feel happy that Indians have so much loose cash to grease palms. On the other hand I feel sad that majority of Indians are getting cheated out of some quality public utility.

International defence procurements and kickback-grandé go hand in hand. Since childhood I've been shocked and very much amused at how governments pay off governments so that one government can order stuff from another government. Defence manufacturers world over, be it Bofors or BAE or Boeing, are privately held only for the name. They are government enterprises for all practical reasons. They get subsidies, research and technical support, and they even get commercial intelligence through commercial espionage by the country's spy agency. The embassies of their countries go whole-heartedly into promoting their cause. Their parliamentary representatives push their case whenever they visit the buying nation. Is this their weakness or their strength that they have to seek government support? And why this blatant acceptance of bribery in Defence deals the world over? Shouldn't business logic and economics triumph automatically?

Here is an article that puts several things into perspective. I really liked this insightful article into corruption in defence deals. It's a backgrounder on the ongoing Saudi-BAE corruption scandal. It's fun to see the Americans walking over red hot coals coz of this deal! ;)

ETHICS ARE DEAD. LONG LIVE BAE!
Larry Elliott, economics editor
Monday December 18, 2006
The Guardian

Imagine that you are the French trade minister, keen to derail the global trade talks for fear that they will result in a wholesale dismantling of the Common Agricultural Policy. It's been an uphill struggle but at last help is at hand.

The next time Tony Blair calls Jacques Chirac to insist that he must face down protests from angry French farmers and stand up for free trade, there is a perfect one-word response: BAE.

Imagine you are the leader of a small, poor, African country with a troubled past and a cavalier approach to pluralism and democracy. Indeed, the crackdown on dissidents has become so blatant in recent months that the Department for International Development will cut off British aid unless the standard of governance is improved. As Hilary Benn repeats his prime minister's mantra - help for Africa is a deal for a deal, aid in return for a crackdown on corruption - you whisper one word: BAE. Read more..



The Tatas are planning to get into the Military-Industrial Complex in a big way. With their strict adherence to ethics, will they be able to survive?

Friday, October 19, 2007

Immigration and the True Citizen

There is a huge debate going on in UK, Europe and other nations that attract immigrants in large numbers. In light of terror threats, governments have come to the realisation that immigrants are just not immersed enough into the culture and tradition of their host nations. Therefore, they feel disjointed from the society and harbour a deep sense of disenchantment and dislike that expresses itself in the form of terrorism or support for radical causes. Hence, the governments feels that the best way to resolve this issue is to 'localise' the immigrants and give them 'strong incentives' to adapt to their host's systems. Governments are not understanding that you cannot force-feed culture. Migrations and the results thereof are much more complicated than asking people to take a quiz that they can just mug up. Immigration is neither a win-win nor a lose-lose game. You win some, you lose some.

Human beings have always migrated - to look for food, shelter, safety or conducive weather. Most people who are migrating to UK and Europe from elsewhere are still looking for the same. These people are not migrating to a culture or religion. They are migrating to money, to a legal system. They are not beggars who need to be grateful to a benevolent Britain. Most of them are fortune hunters who had to go through severe hardships - to reach Britain, and even after reaching there, just to find their feet. They have worked hard and are still working very hard because they know they are in an unlike country, a dissimilar nation. They're not good with the language or the culture but that doesn't dismay them because there's good money to be made and they always have their own culture and religion to take solace from. The immigrants win some. And so do the hosts. Immigrants effectively lower costs of basic services. Young immigrants make sure that the demographics are not uneconomically skewed on the side of the elderly. Immigrants supply skilled and unskilled labour in severely shortaged markets. They also pump in huge tax dollars into the exchequer.

It is the power of economics exerting an influencing force on culture, tradition, systems, laws and government. If you cant take the change then forget about the economic benefits. Concessions have to be made, tolerance has to be shown. In search for the definition of a pure and true citizen, we must not insist on a rapid or drastic cultural adaptation. It is neither fair nor practical. Which South Asian ever emigrated to UK because he loved Fish-n-chips or felt grateful toward the Magna Carta? While asking the question about the true meaning of Britishness, people are forgetting that the world has moved on. Just as the moon exerts some influence on the earth's orbit and makes it a little wobbly, so will immigrants exert some influence on the culture of their hosts. Thats been happening for thousands of years in India. India was supposed to be a sexually liberal nation at some point in history. You have to see our temples to believe it. Where did Kamasutra come from? So what happened in between? How come we've become such prudes now?

Cultural change due to migration of human population is like mixing two matters with dissimilar properties. For instance, hot water and cold water. Put more hot water and you'll scald yourself. Put more cold water and you'll freeze. Too much of hot water changes the character of the water towards the hotter side. Similarly too much cold water changes the character of the water towards to colder side. But its never completely hot or completely cold; unless there is massive invasion of one matter. Then the identity of one engulfs the identity of the other. Immigration is like that. If original white Anglo-Saxons think that they can sit easy and politely ask the immigrants to try and gradually become more 'British' then they are in for a big disappointment. If you allow immigration, be prepared to get influenced in some ways. Prepare to change your own culture in some ways. Friction and turbulence are given. The definition of a 'British' person changes every time a new person crosses the immigration desks of Heathrow.

Is the approach of governments right? We need to define what a nation stands for. What is the definition of culture, identity and boundaries in this age of mixing and mingling. I insist on the basics. What makes a nation what it is? What are the values that attract immigrants? Where does the safety, the shelter, the food and the prosperity stem from? Where is the culture of the nation - on its face or in its heart? Multicultural democracies like India, UK or USA cannot be defined by one culture or one religion or even one political party. These nations can only be defined in terms of values - values that are enshrined in our founding documents - freedom, equality, opportunity to pursue happiness, and so on. The British government must relay messages of these basic values rather than external manifestations of culture. UK must help the new members of the British family to understand that the safety, security and prosperity that they have come to ticks because of these reasons.
"This nation is not what it is because women here do not wear burqas, but because women and men are treated equally. This nation is not what it is because people can speak English, but because everyone can understand each other, speak freely and express anything. This nation is not free and fair because it is populated by rich white men, but because long time back in its history, a great document called the 'Magna Carta' was written and adopted. Beyond this, you are most welcome to love(or hate) either Fish-n-chips or Hilsa in mustard gravy!"

Thursday, March 29, 2007

Global Warming and World Economy

Humans are Opportunists and Survivors

Global Warming and Global Super Freeze are phenomena that happen once in a megaannum. The Earth too tends to balance itself. We are lucky to be living during a warm time. The early effects of Global Warming will only be rising sea levels, warming up of land, air and water, and harsh weather. Some land will be lost to sea and some regained from ice.

Humans are versatile and know how to survive even in adverse conditions. To protect ourselves, we'll definitely develop some technology to cool us or heat us, as might be the need. But the thing is that amidst all this, man is already seeing commerce. There is already conflict between Canada and certain Scandinavian countries over territorial rights on some frozen islands in the arctic region that are de-freezing. Why? Because they're rich in minerals and oils. Thats opportunism.

If oceans become a little warmer, fish cultivation will go up. Man will have more incentive to develop ocean based habitats. A new Atlantis maybe! Ocean is still highly unexplored. Once the right technologies are developed, ocean beds will be more accessible. That means more oil and more metals and more energy. In the long run, economy will always survive, because humans will survive. In the short run, a warmer climate will only fluctuate the graph a bit. In the long run only thing that can truly devastate world economy would be either an asteroid hitting the earth or a trigger-happy egomaniac letting off a nuclear bomb. What must we as individuals do? Get an air conditioner; non CFC of course! :)