Paul Romer talks about RULES - free market, capitalism , market driven economy, globalisation, special zones, though he doesn’t use all of these words explicitly in his talk.
He starts by analysing how almost everyone seems to have a mobile phone but people don't have access to electricity - a comparison which fits in India's scenario too.
Regulation is important, but years and years of over regulation have left us with no electricity, no drinking water etc. Telecom sector was de-regulated in late 90s and the sector flourished, I believe its high time water,insurance, electricity,retail, rail , infra like airports should be de-regulated too.Government has really stifled sectors like electricity, rail by not allowing private participation at all.
Then he talks about ‘one nation partnering other nation’ . India will not do this, probably because of the colonial hangover that we are still carrying. I do get shivers where he gives example of Cuba going and asking Canada to administer a part of their land.I ask myself - How much is too much?Should Globalisation have a limit?These are unanswered questions.
He proceeds to propose "Charter cities" which sounds good though I don’t agree with the Naive belief that cities are safe from crime.I also like the fact that the example of HongKong and China was used.Now, China did get some of its motivation from HongKong. India can copy the western model too – but the right wing dudes won’t let that happen – why? Just because its “western” apparently. I hate these guys, enough is enough, Indians deserve basic amenities if not luxury – even if it comes from a “western” idea. I don’t see the west shunning the idea of YOGA and CURRY saying its “Indian”. Why are so many of us still so xenophobic?Arghhhh
21 comments:
Nice! But beyond a point, consumption cannot be the sole measure of development.
Some pigs consume more than others. The reason is a problem with their satiety, but they are valued for their extra meat.
China's GDP growth didn't come without a cost. Its CO2 emissions have risen alarmingly in recent decades.
Lack of contentment cannot be made into a virtue - or can it be?
Beyond a point, consumption cannot be the sole measure of development - completely agreed, infact beyond a point 'over-consumption' can be harmful.
There should be a fine balance between consumption led growth and export led growth. But - how many nations have a balance?? China's economy is also
export driven, and needs to consume more. Consumption is secondary in my mind for India's growth - what is primary thought is the 'Rules' as Paul
talks about. To drive future growth, our 'Rules' have to change rapidly now.
China's GDP did come at higher emission levels - which is a seperate debate altogether.However India does not have to 'invent' technologies for low emissions now - there are countries willing to sell it.'Invention' is always a lot costlier. So, if you talk about cost/Emission ratio - we are in much better position than most other developed countries were 30 or 40 years back.
Lack of contentment cannot be made into a virtue - or can it be?
Very subjective and cannot have a generalised answer.
We are in a gen, where the control is beyond help...we tend to copy as the age goes by..! hmm interesting..not able to view the video from office..wil do that later!
H a R y
"there are countries willing to sell it" - Which countries? Where are they? And if they already possess the technologies to cut greenhouse emissions, who among them has per-capita emissions lesser than India's?
I should admit that the concern and effort to cut down carbon footprint is much more in the west. There is a major revival of Bicycle culture in most European countries (but only Oregon in US). Even pedal rickshaws were introduced in many cities - I am sure no educated Indian would like to be seen in them anymore. Using private vehicles is increasingly expensive in western cities due to tolls and parking fees.
CO2 emissions can be a separate debate only if growth and sustainability are divorced. In which case, we should just stop worrying about the Glacial Retreat till fresh water becomes really scarce.
Check this, China's ascent to the Gold Medal place in CO2 emissions chart:
http://cdiac.ornl.gov/trends/emis/prc.html
"Which countries? Where are they? And if they already possess the technologies to cut greenhouse emissions, who among them has per-capita emissions lesser than India's?
American and European countries...and I wanna say Duh..uh!!! and yes..they are ready to sell it.
Per capita emission?? Thats funny because that is what is India's contention in the ongoing debate between developed and developing world to cut greenhouse gasses.But consider the GDP's..We are 4th worst when it comes to emissions of CO2, yet where are we when it comes to GDP??12th i guess??
How much does America contribute to world GDP and then compare its emissions.
But yeah - this is way off the mark
. My post was actually about the RULES - Free market, capitalism,subsidies, and what does India have to learn.
@Hary
Do - watch the video. I have not summarized it very well.Video will give an insight of what I wanna convey too.
I hope my argumentative style is not getting on your nerves. Here I go again:
What is that technology? Clean coal? There is an ad campaign by Green groups in America with the message - "There is no such thing as clean coal". Yes, they are right!. Solar still constitutes under 1% of total energy generation in Europe and North America. Nuclear has its own attendant problems that our media doesn't have the capacity to investigate.
If the technology is in place in those countries, why are people bothering about bicycle culture and pedal rickshaws?
http://www.pedicab.com/
I guess we don't need to buy technology for bikes and rickshaws (although no Indian manufacturer makes battery operated and battery assisted bikes yet).
http://wcbstv.com/local/e.zee.bikes.2.713917.html
It is our heavy dependence on Railways that helps keep our carbon footprint low.
I realize I came a long way from Paul Romer's talk but I will repeat this - we should stop measuring development in terms of consumption. Let India not make the same mistake as the west. I rest my case. Thanks for hearing me out!
Exactly my views!! I always remember how we had to book a telephone connection, it took months, even years, to get one. And god help you if there was a problem with a connection, again wait!
When MOTS (Mobile on the spot)was first advertised, it picked up instantly. I am sure sooner or later we will see some similar thing happening to the roads and electricity here. I agree with what he said about this is the video. It's still buffering, I have to wait till I hear the rest of it.
The example of these students who have cell phones but not electricity is so apt. This is what happens in so many parts of India, we have the newest gadgets, but no electricity to run them most of the time :(
@Phase Shift
"I hope my argumentative style is not getting on your nerves. "
No ways. -I love arguments.You can see arguments in more than half of my posts. On the contrary, I tend to get carried away and get more and more aggressive @ times.You are always more than welcome to open up a debate.That helps me get a wider perspective of things - which is what I want.
"we should stop measuring development in terms of consumption. Let India not make the same mistake as the west. I rest my case. Thanks for hearing me out!"
Like I said before, I do agree with it. There should be a balance between 'export' led growth and 'consumption' led growth. Lets not make the mistake that west made - I would like to add, lets also not make the mistake that China seems to be making.
Thanks for the lovely comments!
@Indian Homemaker
" always remember how we had to book a telephone connection, it took months, even years, to get one. And god help you if there was a problem with a connection, again wait! "
Exactly!! Now - this is what I wanted to present. The way market behaves when you open it up. Traditionally India has been doing the opposite - stifling the market doing good to no one - yes not even their own employees. I just wish people under this one thing!
"The example of these students who have cell phones but not electricity is so apt. This is what happens in so many parts of India, we have the newest gadgets, but no electricity to run them most of the time :("
Yes - this is so true. It became possible because telecom sector was de-regulated. Govt should lift its monopoly from sectors like electricity now.
For your reading pleasure:
Walmart - The High Cost Of Low Price
http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/the-price-of-wal-mart-coming-to-town.aspx
@Phase Shift
Wonderful - Thanks for sharing!
This is the "technology" we need.
UK govt's Cycle to Work Scheme:
http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732
Chikki sorry to be late here. I am for open competition in all these sectors with if possible a public sector Companies also in the business as it is now in telecom and insurance sectors. As present now in India there should be a regulatory authority with members from both Govt and non Govt sectors. Obama is proposing such a scheme in USA for health insurance there.
Hi Charakan
No worries - I myself am finding it so tough to stay connected to blogging work.Bloody Busy at work and off work as well.
Regulatory body is definitely needed.Public sector companies are welcome too - on the condition that they are not being virtually kept afloat - like Air India.
From what I have heard Obama is being a little too socialist for America and hence the criticism - But I have not got into the specs of his plan - will discuss it here - if I get a chance to analyse it.
ndians deserve basic amenities if not luxury – even if it comes from a “western” idea. I don’t see the west shunning the idea of YOGA and CURRY saying its “Indian”. Why are so many of us still so xenophobic? Chikki I strongly agree with this!
Hey IHM, Thanks..
I am struggling to cope up with blogging.:-(..Forget writing, I am unable to read any of the blogs. Work is just killing me.:(!
Hope to catch up with you all soon..:)!
please keep the health sector capitalised in india - you know the scenario in the US , don't you ? people are going bankrupt paying doctors and pharmecuticals and medical tests.
please keep the health sector OUT of the capitalism ring in india is what i mean in the above comment
@Anrosh
:). Yeah, lets not go where the US is going.We are fine like this!! Cheers!
@Anrosh
Oh by the way, since we don't each other well, lemme tell you, I can be really Sarcastic @ Times..;)..!!
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