Sunday, December 13, 2009

From the blogs

Brad DeLong in "Anyone Telling You Uncertainty About Climate Change Is a Reason for Inaction Is Either a Fool or a Scoundrel":
"There is one set of circumstances in which uncertainty is a reason for inaction: (a) the measures you would take would be expensive, (b) the measures you would take will be irreversible, and (c) you will get a lot of new information soon to help you judge the situation better.

That set of circumstances does not apply here."

What the wealth of nations is really built upon:
"Relying on game theory analysis, Dasgupta reached two conclusions. The first is that stable societies – that is, where cheats can be found and punished, if only by a refusal to do business with them in future – are a precondition for successful institutions. If every interaction is a one-off, co-operation is impossible, and all those wonderful investments in machinery, education and innovation will simply never happen.

The second conclusion was that co-operation is extremely fragile. Dasgupta’s game theory suggested that even a successful, co-operative society is always at risk of breaking down. “It is easier to destroy institutions than to build them,” he argued, and cited the Watts riots and the decline of many pre-modern civilisations. The credit crisis is, arguably, another example.

If true, this is very disturbing: it suggests that we should perhaps spend less effort thinking about how to develop poor countries, and more effort holding together our own fragile societies.

I was not totally convinced. Perhaps I am complacent, but the past 200 years of economic history contain far more examples of poor countries becoming rich than of rich countries becoming poor.

As Sir Partha patiently explained his algebra to a gaggle of admiring schoolchildren, I was left with more questions than answers about why we trust each other and our institutions, and how such trust is created and destroyed. That, I think, was exactly his aim."

Soutik Biswas in Does India need more states?:
"Also, many say, if you have nine "Hindi-speaking" states, why can't you have two "Telugu speaking ones"?

Others say new states don't serve any purpose. They end up benefiting entrenched local elites and the middle class, and leave the poor in the lurch. They point to Jharkhand which was carved out of southern Bihar in 2000 - nine years on, many of its people have turned to Maoists, and its politicians are embroiled in some of India's worst corruption.

A number of north-eastern states carved out of Assam are accused of becoming fiefs of local elites or kleptocracies. The issues of lack of development and growing corruption are untouched. Creating financially unstable states, critics say, can lead to even more problems.

Others say new states remain works in progress - among them Uttarkhand and Chattisgarh, despite the latter's current woes and a strong Maoist presence. It has taken some four decades for Haryana and Himachal Pradesh to turn into successful states. And India still has relatively few states given the size of its population: with some 300 million people, the US has 50 states; India with its billion-plus people has only 28."

Tarunabh Khaitan in Law and Other Things:
"Indeed, what ought to be the basis of devolving power? Nick Barber's excellent paper 'The Limited Modesty of Subsidiarity' compares subsidiarity and nationalism as two distinct reasons for doing so. Simply put, subsidiarity requires that power should be exercised at the smallest unit that can exercise it efficiently. There is a presumption in favour of smaller units, with the rider of efficiency. An important implication of subsidiarity is that one size need not fit all, that different regions can have different ways of sharing power (even our federal constitution admits and accommodates idiosyncratic circumstances of certain states under the provisions in Part XXI)."
P.S. A Telugu article by muppalla Ranganayakamma is reproduced in this blog http://venuvu.blogspot.com/2009/12/blog-post.html and also in తెలంగాణ పై రంగనాయకమ్మ గారి వ్యాసమ్

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