Archive for September 3rd, 2015

Questioning the licencing process of payment banks..(Similar to the coal allocation process?)

September 3, 2015

Ajay Shan and Subho Roy have this food for thought post on the recent licening of payments banks in India. Interestingly, they think bank licencing process is quite similar to the questionable coal block allocation process. This blog had also raised concerns

Obviously given the hype around Indian central bank, this post is likely to be ignored. Worse they call bank licencing similar to the coal allocation process:But it speaks volumes about the so called secretive processes in Indian central bank. It refuses to learn from its less hyped sibling which has more transparent but less celebrated  set of processes. This blog had also raised concerns over this licencing. The chair of the committee recommending such banks was licencing them as well!

The authors list three practices for such licencing  – first where there is free competition between banks and tech companies in payments space. Second where there is a proper code of licencing such entities. Under this, the one who is rejected is given a chance for appealing and hearing its case.  Third is the secretive route of committees which RBI has followed where there is limited accountability. Only a press release which has rosy words suggesting stringent measures have been adopted while selecting such entities.

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Naming our roads after villains could be a nice nudge..

September 3, 2015

Jug Suraiya has a good funny piece which is actually a serious piece of advice to our govt. He says by naming our public services, roads etc on popular (read political) icons, we actually do latter a disservice. Given such deplorable state of such services, it gives these popular names a bad name really.

So instead we should name them after our villains:

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India’s financial capital suffers from water cuts and India’s silicon valley from power cuts

September 3, 2015

Let’s say an alien suddenly lands on earth and decides to set up a base in some part of the planet. Not knowing where to, it picks a newspaper and sees doom everywhere. Then suddenly it reads about a country called India where there is so much optimism. It seems to be the only growing region in the world and spoken of highly in the press. The alien decides to set up its home in one of the premier cities of the country and is really excited at the prospect. And then the reality hits..

One does not even know whether to laugh or be angry on the several articles talking about India’s surge in world economy. Someone sitting outside the country (and trading in Indian stocks) makes one believe so much is happening in Indian economy. It must be really good for people in the country. Nothing could be further from truth.

One is not even getting into the rural areas and states/cities doing poorly. Let us even see what is happening around India’s major cities.

Take the case of Mumbai, India’s financial capital which is the source of much of this India hype. The city is bracing for water cuts as BMC cuts water supply by 20%.

Then take the case of India’s silicon valley where power cuts are  a serious issue. It is not easy to be sitting here and keep waiting for power. The cuts are so random, sometimes in the middle of the night and sometimes early morning. There is just no timeline at all. And then issues with garbage, water, traffic etc are haunting the city. These are perennial issues and power is the latest entrant in the list.

Moreover, a city which has given so much of fame to Indian might, has been ignored from the smart city list. The engineers in the city could be preparing quite a few technologies for the smart city initiative but the city itself is ignored. Now one can say that much of this smart city bit is just talk and does not matter. Well, even then not to include Bangalore is like such a joke.

And the national capital from Dengue (not to suggest that Mumbai/Bangalore not suffering from Dengue).

When one goes beyond these major cities, things are becoming even more complex in terms of availability of basic things. Water tables are dipping alarmingly, health hazards run rampant, traffic snarls growing in places where there was no traffic a few years back, heaps of garbage spread across and so on..

One wonders how can things be so disconnected from reality? Is this how countries grew in the past as well where rhetoric triumphed over reality?

Math issues in economics and will economics be practiced by data scientists in future?

September 3, 2015

Noah Smith comments on the issue of mathiness in economics raised by Prof Paul Romer recently.  He says problem is not with economics having math but the way subject uses math which usually goes beyond logic:

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