Skip to main content

Why the poor stay poor in India

There's no denying India is a desperately poor country. There's no arguing that steps must be taken to alleviate poverty.

But if you think the usual trio of politician, bureaucrat, and the socialist-jholawala-activist are going to do something about it, you're turning a nelson's eye to this trio's colossal failure for the past sixty years!

If for a moment you can't understand why they've failed, all you have to do is focus on the funds the trio mismanages in the name of alleviating poverty. Again, its easy to see why they mismanage.

Note. Every paise this famed trio manages in the name of alleviating poverty isn't earned by them. Plus there's zero accountability to the money they manage. Why in god's name would they give a whit to managing funds well? The fact is, hare brained social schemes will do nothing to dent poverty. All they'll do is either fill the coffers of those are put in charge of the kitty, or make slothful citizens out of those who are granted the money.

What India needs is neither government or the jholawalah-activists to do something about poverty. If fact they can't, and won't. What India needs is entrepreneurs and wealth creators who through the act of value creation (read, making products and services) put money into the hands of all those who participate in the process. Such money in the hands of people is what then allows them to buy food and other stuff for themselves.

That's the only way out of poverty!

Comments

Anirudh said…
Sir I think even Entrepreneurs would halt their ventures/ give in to corruption diluting wealth creation process. How could they be helping the nation ?
Ray Titus said…
If by corruption you mean businesses paying regulators for licenses, then I'd say the source of the problem is the existence of reglation and regulators.

If you then say regulation earns government money, I'd say that's at the cost of the consumer who now has to pay higher prices, because costs to producers go up.
Ranjit said…
Hear, hear, prof.! That's exactly what seems to have been happening over the last 7-8 (or fewer) years. Whatever growth this country has seen has been thanks to 'crass' commerce, and no thanks to the politician at all!

However, that breed always wins in the end, and seems to have pulled the "India Shining" story down to their level - sucked dry till it just can't go on any more. So, starting from the beginning-to-flourish middle class, the reverse of this growth story will begin to take place...and not long from today, these day's of glory will feel like an unreal memory, a blip in the sorry lives of most of the nation's citizens.
Did I hear some say "Mera Bharat mahan!"??
Prof, a question on a slightly related topic. Why do people vote for the allegedly corrupt and proven corrupt leaders? What could be the psychology.

Does the thinking goes like - "Let the corrupt leader loot, at least he dishes out freebies to me. And all leaders are corrupt"

This is in the context of YSRCP winning hands down (15/18 seats) in AP bypolls.
Prof, a question on a slightly related topic. Why do people vote for the allegedly corrupt and proven corrupt leaders? What could be the psychology.

Does the thinking goes like - "Let the corrupt leader loot, at least he dishes out freebies to me. And all leaders are corrupt"

This is in the context of YSRCP winning hands down (15/18 seats) in AP bypolls.

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.


Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Wearing Cuba means Walking Cuba

There's something ethereal about wearing 'Cuba'. Suddenly its the streets of Havana, smoke filled and lit by the groovin', more than the lights. The bars are packed to hilt and dreamy women seem to glide by. The feeling's beyond magical.

How did I get there?

Before I explain, I gotta tell you about the power of brands to take you places. Brands bring with them an ability to prompt you to conjure up the unreal. They can transform your reality into fantasy. And consumers are more than willing partners to brands as the drudgery they face in everyday life begs an injection of fantasy. Brands that operate in a zone of the unreal do the conjuring act as there's nothing else that consumers can call for, while making judgements. For instance, what should I be judging the lip paint on? Its colour and tone or its ability to turn me into a diva?

Cuba's a perfume. The moment I wear it, I am traipsing the streets of Havana. Its smoke filled bars I see. Its music I hear and…