One of my favorite obsessions is information. Naturally so considering that I am an economist, and markets and information are inseparable. Information is the lubricant that keeps the huge big machinery of the market humming. Which is of course why information and communications technology (ICT) is so critical today as the modern world is a huge marketplace where stuff gets exchanged. Globalization (which I define as the integration of markets on a global scale) and the explosion of ICT are conjoined twins.
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Author: Atanu Dey
Economist.
The Indian Education System – 6
Incentive Matters
Alistair Cooke in his weekly radio broadcast on BBC Radio 4, A Letter from America, once explained the theory of public choice to his listeners as “the homely but important truth that the politicians are after all just the same as the rest of us.” It is an accessible, though incomplete, definition of what public choice is about. You could read James Buchanan, who in 1986 won the “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel” (popularly known as the Nobel Prize in Economics) “for his development of the contractual and constitutional bases for the theory of economic and political decision-making.” But Cook’s version is adequate for our needs to explain why the Indian educational system is a disaster.
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The Indian Education System — Part 5
One underhanded way to scare a neoclassical economist out of his wits is to creep up on him and shout “monopoly power.” Economists regard monopolies with the same mixture of dread, contempt and fascination as biologists regard cancer. They recognize the awesome virulent power of monopolies to wreak havoc on their world of mutually beneficial voluntary exchanges. Monopolies, whether public or private, lead to social welfare losses. At the other extreme, perfect competition leads to maximization of social welfare, subject to some reasonable conditions often approximated in the real world.
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India Cannot Afford Villages
“Can India Afford its Villages?” is the title of an opinion piece in today’s livemint.com (a joint HT and WSJ newspaper). The subtext says, “The answer to the problems of our rural economy paradoxically lies in urban development.” If you have been reading this blog for a bit, you would immediately suspect that I wrote that piece. Partly so. I co-authored the piece with Reuben Abraham.
The Indian Education System — Part 4
The absence of universal basic literacy and education is a constraint on present economic performance and future growth. Doubtless, education is costly but the opportunity cost of not having an education is even higher. The old adage about a stitch in time saving nine holds with special force in the case of basic literacy. Here’s the argument. At most one generation requires help in becoming literate; the children of literate parents are overwhelmingly literate; and the children of illiterate parents are more likely to be illiterate compared to those of literate parents.
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Pragati — May Issue
Get your copy fresh off the press here.
Contents :
Editorial – A leap of faith
Perspectives – on Pakistan at the crossroads, and on the abuse of ‘social justice’
Roundup – on Bangladesh’s disappearing democracy, flying tigers, a report on clean energy and the missing debate on property rights and institutional autonomy
Agenda – unshackling education
Do read and share!
Form is Emptiness
Buddha Purnima
You have to agree that Siddhartha Gautama had great timing. His birth was during the full moon in the month of May. He attained enlightenment and became a buddha some years later on a full moon in the month of May. And to round it all off, he attained parinirvana (died) during a full moon of May when he was old.
The full moon is so bright outside my bedroom window this morning that it woke me up at 4 AM. It being the 2nd of May, this month we will have “a blue moon” – a second full moon in the same month. Two “purnima’s,” as a full moon is called in Sanskrit (and many of its daughter languages.) This purnima is called the Buddha Purnima.
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The Indian Education System — Part 3
The education system is embedded in the bigger socio-political order of the economy. To a large degree, the larger system dictates the characteristics of its subsystems. In the broadest terms, the government of India is an extractive and exploitative system created specifically for that purpose during the nearly one hundred years of its existence as a British colony before India became politically independent. The British, as a colonial power, created a system designed to control every aspect of the economy to maximize extraction. The challenge of administering such a large population required a certain small percentage of the native population to be educated in a very specific way. Therefore the total and absolute control of the education system was a necessity.
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Comment Policy
Comments on this blog are not moderated. But abusive comments are out of bounds as they are not part of civilized discourse. I regret that I will, in the extreme case, ban anyone from commenting if he or she repeatedly demonstrates that he or she is incapable of disagreeing without being disagreeable.
The Indian Education System — Part 2
Education matters immensely when it comes to the health of an economy. There is a positive correlation between years of schooling and the GDP per capita. Let’s look at the numbers that are indicative of the generalization. In 2001, “school-life expectancy” and the ppp GDP per capita for Ethiopia were (4.3 years, and $675); for Indonesia (10, and $2,844), for China (12.4, and $4,065), for South Korea (14.6, and $17,048), Japan (14.3, and $25,559), and the US (15.2, and $32,764).
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Atanu Dey : Life is a Random Draw 