Links for 9th May, 2019

  1. “Matters came to a head in the summer of 1745. Nanasaheb Peshwa was in Satara and his grandmother, Radhabai, lived in Pune. Seeing the water crisis, she ordered that no water be drawn from the river for the gardens. However, her order was challenged and a letter of complaint was written to the Peshwa in Satara.”
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    A very nice article in the Pune Mirror about the cities water supply, and how it originated and was developed over time. Also, if you haven’t heard it already, you might want to listen to this short introduction to Visvesvarya.
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  2. “This isn’t to say we don’t learn from these exercises. We do. In both India and Tanzania, we learn that citizens value public services. In Tanzania, the researchers then led deliberative discussions about cash transfers, and some respondents highlighted that “social services encourage a collective voice that helps increase accountability, while cash transfers would focus people on private interests and leave room for corruption.”Listen to the voices of citizens. But before throwing the cash transfer baby out with the bathwater, let’s make sure those citizens have clear information about their trade-offs.”
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    Beware well-intentioned surveys – read this article to find out why. Questions in surveys – and the framing of these questions – should give you a headache. If they don’t, you haven’t thought enough about ’em!
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  3. “Someone reading a book is a sign of order in the world,” wrote the poet Mary Ruefle. Four centuries earlier, while ushering in a new world order, Galileo contemplated how books give us superhuman powers — a sentiment his twentieth-century counterpart, Carl Sagan (November 9, 1934–December 20, 1996), echoed in his shimmering assertion that “a book is proof that humans are capable of working magic.”
    Do you subscribe to BrainPickings? You really should – and clicking through to this link is a good enough reason to start. Amit Varma had a column in the Times of India about much the same thing the other day, which is also worth reading for a rather more, um, practical example of the benefits of reading.
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  4. The lungi is more than just a South Indian sartorial choice. But what are the origins of this popular garment? It is difficult to state this with certainty. The lungi’s well regarded cousin, the dhoti, seems to have, on the whole, cornered much of the attention, in terms of research into its history on account of its elevated social standing.”
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    The Madras Courier on the lungi – its origins, how to wear it, and its apparent near universality.
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  5. “The new regulations have been harder on some of the smaller developers who lack the wherewithal to navigate the labyrinth that is getting construction permits on time causing many to exit the market. The Authority has no jurisdiction to hold different government departments to account for withholding or delaying approvals without a valid cause. Without accompanying reforms that ease the complex permissions process and bring about transparency and predictability in rule implementation, the objective of easing housing supply bottlenecks to lower house prices and benefit homebuyers is going to meet with limited success. ”
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    A short take on what ails the real estate sector in India. And the answer that this paper gives is that there may be too much regulation of the sector, not too little. A classic example of unintended consequences. This paper, from that article, is also worth reading.
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Links for 26th April, 2019

  1. “The world economy desperately needs a plan for “peaceful coexistence” between the United States and China. Both sides need to accept the other’s right to develop under its own terms. The US must not try to reshape the Chinese economy in its image of a capitalist market economy, and China must recognize America’s concerns regarding employment and technology leakages, and accept the occasional limits on access to US markets implied by these concerns.”
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    Dani Rodrik explains the need for, as he puts it, peaceful coexistence – between China and the USA. My money is on this not happening: history, current affairs and game theory are my reasons for being less than optimistic.
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  2. “Yes, there was arsenic in Bangladesh’s wells, and it may have posed a health threat. But in areas where people were encouraged to switch away from the wells, child mortality jumped by a horrifying 45 percent — and adult mortality increased too. It turns out that the alternatives to the wells, for most people in Bangladesh, were all worse — surface water contaminated with waterborne diseases, or extended storage of water in the home, which is also a major disease risk.”
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    Unintended consequences is one of the most underrated phrases in economics.
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  3. “Only one of Murdoch’s adult children would win the ultimate prize of running the world’s most powerful media empire, but all four of them would ultimately have an equal say in the direction of its future: Murdoch had structured both of his companies, 21st Century Fox and News Corp, so that the Murdoch Family Trust held a controlling interest in them. He held four of the trust’s eight votes, while each of his adult children had only one. He could never be outvoted. But he had also stipulated that once he was gone, his votes would disappear and all the decision-making power would revert to the children. This meant that his death could set off a power struggle that would dwarf anything the family had seen while he was alive and very possibly reorder the political landscape across the English-speaking world.”
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    A very long, but very entertaining and informative read about the Murdoch family – its rise, its stumbles and its influence on the world today. Be warned, this is only the first part – but the entire thing is a great read.
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  4. “There has been a lot of churn in the Sensex over the decades. Corporate power in India seems to be more fragile than usually understood. Only a handful of companies such as Tata Motors, Hindustan Unilever, Mahindra & Mahindra, ITC, and Larsen & Toubro have managed to hold their place in the index. Many of the older industrial houses such as the Thapar group, the Walchand group and the Kirloskar group have slipped out of the benchmark index. Even the real estate and infrastructure giants who had a strong presence in the Sensex a decade ago — Jaiprakash Associates, Reliance Infrastructure and DLF, for example — are no longer in the index.”
    Niranjan Rajadhakshya writes in Livemint about the churn in the Sensex. Worth reading for the chart alone that appears midway through the article.
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  5. “The government has tried to change ideas about death through directives and incentives. In 2016, officials issued guidelines for encouraging more burials within nature, rather than delineating plots for tombs and memorials. In a revised law on funeral management in September, the central government called on local governments to provide financial support for public cemeteries, which would be cheaper for residents.”
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    An interesting read about the burial problem in China, and what they’re doing about it.

Links for 6th February, 2019

  1. “Drawing about 250 cubic kilometres (sic) per year – more than a fourth of the global total – India is the world’s largest user of groundwater. More than 60 percent of India’s irrigated agriculture and 85 percent of drinking water supplies are dependent on groundwater, according to World Bank estimates”
    The Madras Courier writes on India’s impending – some would dispute the use of that word – water crisis. We simply don’t take it seriously enough, and if you want a good application of the importance of property rights, the power of pricing, and the difficulty of formulating effective policy from the top down, this is a good read.
  2. “…as Lardy suggests, in the absence of an extraordinary course reversal in government policies, as the role of the state impinges on private dynamism, growth in China will likely slow substantially over the medium term. Even with a major policy shift that provides greater scope for (domestic and foreign) private activity, a substantial pickup in growth would surprise us more than a continued decline.”
    The excellent Money and Banking blog reports on the bearish case for China in the medium to long term, on the basis of a close examination of it’s macroeconomic performance and policies of the past thirty years or so. One thing to try and understand about China is whether there is a recession underway or not in China (almost certainly, in my opinion). The second thing to try and figure out is why. That’s what this is about.
  3. “Russia sold twice as much weaponry to African countries in 2017 as it did in 2012, according to the Stockholm International Peace Research Institute. Between 2013 and 2017, Russia supplied 39 per cent of Africa’s imported arms — compared with 17 per cent from China and 11 per cent from the US. ”
    In retrospect, hardly surprising – although I must admit I didn’t know much about this. Also, reading this article gave me my word for the day: Francafrique. It’s a term worth Googling.
  4. “Anyone considering starting a marketplace business should be aware of the types of marketplaces and the potential network effects that they could benefit from. Those who are already in the thick of building a marketplace or market network should create products and features that enhance and accelerate those network effects that can propel their success forward.”
    Any microeconomics student in India today knows about competing for market share. How many, I wonder, know about competing to build the market itself? This rather long article focuses on building out your thinking about building a market – and the nuances involved in thinking along these lines.
  5. “If all the past US intelligence estimates could be declassified, I suspect readers would find a wealth of accurate predictions, particularly with regard to technical developments in the WMD programs, but far fewer when it came to prognosticating what the North Korean leadership would do. That’s the point of pursuing face-to-face diplomacy with Pyongyang, to get a clearer picture of what is possible and what isn’t as well as to learn more about what makes the North Koreans tick.”
    Or put another way, predicting production is easy. Predicting personalities – not so much. A good read to understand the problems of trying to figure out what North Korea is up to – and teasing out the predictability (or lack thereof) of the human aspect.