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Populist Nationalism And Crony-Capitalism


wealthymattersI love elite theories. Ultimately we all have to deal with the power structures in society, even as we try to make a living.

Raghuram Rajan is always fun to follow and leaves you with penetrating insights. Let him help you understand the world, then decide what you wish to do with your understanding.

The following is reconstructed from a speech he gave at the Stigler Centre. Unfortunately I can’t find the full text anywhere online.

Have Fun ! Read more of this post

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A Hypothesis On The Persistence Of Crony Capitalism


wealthymatters“One widely held hypothesis is that our country suffers from want of a “few good men” in politics. This view is unfair to the many upstanding people in politics. But even assuming it is true, every so often we see the emergence of a group, usually upper middle class professionals, who want to clean up politics. But when these “good” people stand for election, they tend to lose their deposits. Does the electorate really not want squeaky clean government?

Apart from the conceit that high morals lie only with the upper middle class, the error in this hypothesis may be in believing that problems stem from individual ethics rather than the system we have. In a speech I made before the Bombay Chamber of Commerce in 2008, I argued that the tolerance for the venal politician is because he is the crutch that helps the poor and underprivileged navigate a system that gives them so little access.This may be why he survives. Read more of this post

Top 10 Indebted Indian Corporates


wealthymatters

Crony capitalism is a high risk but quick way to enrich oneself. But such promoter groups are bad news for unsophisticated investors.

Be well advised to avoid the shares and FDs of these groups.

1 The Reliance Group

The Anil Ambani-led Reliance Group is in the business of power, insurance, wealth management, telecommunication infrastructure and entertainment. In March 2015, the company had a debt of Rs 1.25 lakh crore on its balance sheet. The amount is equivalent to the special package announced for Bihar by Prime Minister Narendra Modi ahead of state elections in August last year.

2 The Vedanta Group

Anil Agarwal’s company is the second-most indebted company. According to Credit Suisse, the company, which is into metals and mining, had a debt of Rs 1.03 lakh crore. This is equivalent to the amount raised by the Government of India in March 2015 through its biggest-ever auction of telecom spectrum. Read more of this post

An Explanation


#MumbaiMetroMess

Dear Readers,

Thank you for all your kind enquiries about my wellbeing.Let me hasten to add that all is well with me.The reason I have been blogging in so sporadic a fashion on wealthymatters is my preoccupation with #MumbaiMetroMess.

Last September I met Vinit Goenka during the BigRock-Indiblogger event.I am interested in governace and thought I might go see what his e-governance was all about.I was disappointed to discover that his vision of e-governance was nothing but e-government and that too of a very centralized,top-down variety.But I happened to discover the digital citizen’s movement-#MumbaiMetroMess then. Read more of this post

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