How we Subsidize the Rich

Yesterday’s Indian Express carried a piece by me on the perverse oil subsidy that the government of India provides. I begin that piece with my favorite Douglass North quote: “Economic history is overwhelmingly a story of economies that failed to produce a set of economic rules of the game (with enforcement) that induce sustained economic growth.” I used that quote in the other piece published in Mint today.

The reason I like that quote it because it goes to the very heart of the problem of India’s economic development. Indians as a collective are no less than other collectives around the world; India is endowed with natural and human resources; yet India is desperately poor. Why? Because we have failed to develop a set of rational rules to play by. Refusing to acknowledge that failing will ensure our continued poverty.

Anyway, here’s the text of that India Express piece.
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Profits are Corporations’ Social Responsibility

The business of business is profit. That’s the whole point in doing business. If a business is following the rules and legally making a profit, it is discharging its social responsibilities. I wrote an opinion piece on corporate social responsibility (CSR) in today’s Mint arguing that corporations are not responsible for solving social problems.

Here’s the text of the article.
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