Month: December 2004

Casting Spells to Fix the Broken Car

Folk wisdom captures very succinctly the idea that life is about tradeoffs in the saying that one cannot eat one’s cake and have it as well. If you eat the cake, it is gone and you no longer have it. Economists call it opportunity cost . The opportunity cost of eating the cake is not having it; conversely, the opportunity cost of having the cake is that of not eating it.

Remarkable results follow from exploring the idea of opportunity costs. The whole theory of comparative advantage — the fundamental reason why trade is a win-win game — pivots around the idea. One could do worse than to sit and consider opportunity costs whenever one contemplates doing something.
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Mud-wrestling with Pigs

“ICT for Development” seems to be all the rage these days. One cannot turn anywhere without being bombarded with the conventional wisdom that ICT will solve all developmental problems, so much so that people have begun to employ the idiotic shorthand “ICT4D” without so much as a beg-your-pardon.
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The Tathagata’s Sermon on Economics

Thus have I heard, that once when the The Blessed One, the Tathagata, was resting in Rajagriha during the season of rains, he carefully pondered the economic truths. Among those assembled were Shariputra, the son of a noble family, and Avalokiteshwara, the Bodhisattva Mahasattva, the Buddha of Infinite Compassion, and lots of monks too numerous to name here.

Shariputra asked The Blessed One, “What is the chief lesson that one can learn from a careful study of economics?”
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