"When I am with you and my thoughts are at rest and there is nothing to say, then I will know that my search has ended."
Links
Anand
Musicophile
IIMcatwalk
Satish

The guy who bores you here is Sreekanth, Indian, ex-Software Engineer, management student(IIM Ahmedabad)
Enthusiastic at worst, ecstatic at best.
View My Guestbook
Sign My Guestbook


Archives
03/01/2002 - 04/01/2002 04/01/2002 - 05/01/2002 05/01/2002 - 06/01/2002 06/01/2002 - 07/01/2002 07/01/2002 - 08/01/2002 08/01/2002 - 09/01/2002 09/01/2002 - 10/01/2002 01/01/2003 - 02/01/2003 02/01/2003 - 03/01/2003 04/01/2003 - 05/01/2003 01/01/2004 - 02/01/2004 06/01/2004 - 07/01/2004 05/01/2005 - 06/01/2005 07/01/2006 - 08/01/2006 08/01/2006 - 09/01/2006 10/01/2006 - 11/01/2006 11/01/2006 - 12/01/2006 01/01/2007 - 02/01/2007 06/01/2007 - 07/01/2007 10/01/2007 - 11/01/2007 01/01/2008 - 02/01/2008 << current


Life 'n' Love                                                         Indian Social Bookmarking  Music  IIMs and CAT    
 
The Emperor is naked

I just finished reading this very interesting article by Pankaj Mishra in New York Times.

This according to me summarises a lot of the confusion surrounding India on whether we have become a developed nation/superpower or not. There’s this economic theory called Lewis’s Dual Sector growth model which is supposed to take countries from Developing to Developed. This model was the foundation stone of Developmental economics.

Put simply it states that the marginal productivity of labour in a slow growing sector is near zero while in another one is significantly high. This leads to labour mobility and without any reduction in the slow sector, growth in the other sector. The surplus is reinvested leading to capital stock formation. This process leads to GDP growth.
We can crudely put agri as the slow sector and mfgr/IT as the second sector.

Long back economists realized that labour mobility is tricky. There is an endowment failure. A farmer cannot become an IT professional that easily. The model doesn’t work at all.

India is facing this issue in a big way. The solution, atleast partly, is to solve the endowment failure problem of the poor through better education and access to cheaper credit. These are problems that can be solved. It is an interesting challenge too. Frankly, it is my life’s ambition to make some reasonable savings and then exit corporate world and work on some such projects. God permit :-)

Monday, July 10, 2006
Comments: Post a Comment
This page is powered by Blogger.