It's a small world after all...

In a recent post, I'd expressed concern that the current economic slowdown is a symptom of structural issues, rather than just a liquidity crunch. My main argument is that, the slowdown we are seeing, is actually a result of the massive economic growth we saw in the last few years leading to increased capability for value addition, and a resultant increase in demand for money supply. Money supply is not the same as liquidity crunch. In the latter, there is enough money in the system to cater to its demands, but the money is not "flowing" (probably due to hoarding and distrust). But, money supply scarcity is an even more fundamental problem. It refers to the dearth of money itself, to meet the growing demands of the economy. There is a recent video  (in Kannada) on social media, that makes a pretty convincing case that the current slowdown is not due to structural issues with the economy. The speaker likens the slowdown to us deciding to walk for 15 kms and taking a

As a professor, I am often approached by students wanting some form of career advice-- especially when they plan to take a major leap in their lives, by going abroad for higher studies for their Master's or PhD. It takes me back to my own times when I took this major leap in my life, and my professor, very strangely, didn't seem very happy. I had expected him to congratulate me when I told him that I had won this prestigious fellowship to study in one of the most prestigious university in Europe. And his lack of enthusiasm, made me hurt and defensive. At that time, I had haughtily and contemptuously believed that he was upset with me because I'd decided to go abroad and build my own life, rather than registering for a PhD under him. Such was my delusion that his comments had completely missed their significance. Even though he seemed less than enthusiastic, he had discussed at length with me about my plans and I had asked him a lot of questions like: which field of stu

UPDATE: There seems to be a mistaken inference from this post, that the concept of "economic holes" is the same as liquidity crunch, and demonetisation from 2016 is the cause for that. This is not true. Liquidity crunch typically happens due to hoarding of cash, arising primarily from uncertainty in the economy. Economic holes is a money supply problem. It is much deeper, and has nothing to do specifically with the current government or demonetisation. Both the current government and previous ones, have ignored this problem. I'd written about economic holes back in the early 2000s. It is really about whether an economy has relevant mechanisms to make its money supply keep up with the demands of a growing economy.  The Indian mind may have an acute acumen for sustainability , but what we really don't understand is growth and its importance. To put it in dharmic terminology-- we have an instinct for dharma , but we don't understand the importance of prana . B

Some time ago I was witness to this interaction between a boy of maybe 6 years old and his mother, involving his even smaller sister of maybe 3 years old. He was very upset with his mother because she had just bought his sister a nice woollen cap and a sweater to keep her warm, while she had bought him nothing (he was already wearing warm clothes). He was protesting to her and throwing tantrums about having been left out. "He becomes jealous very quickly," his mother told me, looking somewhat apologetic and embarrassed about his public tantrums. "Now, now dear.. Don't be jealous of your sister. Don't you love your little sister?" She asked him. In response to this, he suddenly became defensive and started looking ashamed. He did after all, love his little sister, and yes he had been taught that to be jealous of her would be a flaw in his character. This episode took me back to my own childhood experiences, where similar episodes elicited similar respons

In school where we studied under the Macaulayite system of education , we learnt of Africa as the "dark continent" comprising of primitive tribes. And indeed even to this day, Africa is seen by the rest of the Westernised world, as a place of primitive tribes and cultures. Which is why, a 100 people dying in a shootout in Mali a few days ago, finds no mention in mainstream media, while 50 people dying in a shootout earlier in New Zealand is still debated on all channels. And movies like " The Gods must be crazy " just reinforce the primitive and naive stereotype of African tribes. The movie is based on an assumption by the story teller, that the African bushmen thinks of Europeans as Gods, and goes on to self-deprecate the Western culture in order for the narrative to appear humble. Similarly, there are ample do-gooders who appeal to the Western tourist to observe other ("primitive") cultures with "humility" and not try to offer solutions. N

'Tis a tale of two brothers One called Ramu, and the other Shamu, from a village long ago.. 'Tis the story of their lives and the lessons learned.. when out to the world, they decided to go.. Both went far and wide.. till one day, Ramu found a Master-- and Shamu found a Guru.. They learned their lessons well, and strived hard with sincerity.. until they were ready-- to go in search of prosperity.. Ramu had learnt to submit  and yield to the will of his Master.. so that he could think like Him, and follow his path, thereafter..  Shamu had learnt to think, with abstraction and dispassion.. so he could argue and inquire, with empathy and compassion.. The Master chiseled the mind of Ramu  and moulded him, as if he were a lump of clay.. While the Guru nurtured Shamu and helped him discover himself through his thoughts-- while at work and at play.. Ramu learned to treat his Master with fear and deference..