Sunday, April 29, 2018

Knowledge alone is not sufficient.

"A few months ago, Mumbai Mirror reported how several of the biggest real estate developers in the city traced their roots to Bhinmal, a small town in Rajasthan," wrote N Rajadhyaksha. "See, if one person moves to a new place and makes money there, others follow," said one of the locals. "They made the right investments at the right time. Later, they helped people from their native place to set up a business in Mumbai. It was like a chain." Research by economists HK Hvide and P Oyer in Finland discovered that "entrepreneurs who went into industries where there was family experience were more likely to succeed because of the specific industry knowledge they were exposed to at home during childhood -- or at the dinner table". This advantage held even for people whose fathers had died earlier, meaning that it was knowledge, and not inherited networking, that provided the edge. A survey in the UK found that children of middle class families do better in life than children of disadvantaged families because they "hoard the best opportunities", by financing unpaid internships and using their networks. Parents are supposed to give the best possible upbringing to their children otherwise they will be failing in their duty, objected Q Letts. No government can, or should, stop parents providing knowledge to their children, it is the government's moral duty to provide equal education opportunities to every child so that all children can compete fairly. Advances in technology will disrupt economies in unknown ways, so quality education is a must, wrote E Ghani of the World Bank. Because spending power of individuals is weak in India businesses have a unique challenge here, even though a 1.3 billion population with rising incomes looks extremely inviting at the macro level, wrote, T Mukherjee. In 2016-17, Vodafone had a total global subscriber base of 341.7 million, of which 209 million, about 61%, were in India. Yet, it earned 6.16 billion euros here out of a total revenue of 47.6 billion euros, just 12.9%. Advantages of belonging to a community is best exemplified in South Africa where the collapse of the Apartheid system has resulted in poverty among a section of whites who had been protected in the past. "India is a great example of an economy where community networks dominate specific activities -- from trade to skills." Which means that Dalits, "A community that has been denied opportunity will find it very difficult to plug into existing business networks, and creating new ones will be an uphill task." Politicians will do their utmost to divide communities to get their votes. Forming new community networks is going to be almost impossible.

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