Archive | November, 2011

How to cut gibberish

6 Nov

Following is a commentary on the future directions of the market (the Nifty index) from a leading business paper,

“The current up move may halt around the 5500-level. After that, we could either enter a phase of prolonged consolidation in the range of 5000-5500 or the index could once again drift lower to retest the 4700 odd levels.” (emphasis mine)

Translated into plain English, the above means,

“The markets may stop going up. It could remain where it is. Or it could go down.”

Eradicating poverty without aid

5 Nov

Poor Economics, by Abhijit Banerjee and Esther Duflo, has won the Financial Times and Goldman Sachs’ Business Book of the Year award. The book deals with “radical new ways of tackling global poverty.”

This reminded me of a paper my friend George and I had written some years back. An excerpt from the paper (you can download the entire paper here),

We believe that poverty, hunger and malnutrition in the global economy can be eliminated without any aid. The commodification of development, through the creation of an incentive structure, which results in a self regulating market where every market participant gains, is the essence of our idea. There is no philanthropy involved.

There are several multilateral, bilateral and unilateral organizations working towards eradicating poverty. Billions of aid money has been disbursed for this purpose. Yet, the problem of poverty remains huge.

Maybe its time to do things differently.