Author of “Accelerating India’s Development: A State-led Roadmap for Effective Governance” Karthik Muralidharan: “The core motivation for writing the book was the recognition that across education, healthcare, welfare etc., the common issue we face is weakness in governance. When we say state capacity we broadly mean the capacity of the state to successfully achieve tasks and goals assigned to it through the political process. We have a lot of discussions in India about policy priorities. Like should the government focus on infrastructure or health or education? We want it to do everything, but what we don’t ask is how will the government actually do it? Does it have the capacity to do it? And why is the translation of budget into outcomes so weak? India has a lot to be proud of as the world’s fastest-growing large economy, with macroeconomic stability. But there are also deep challenges and weaknesses, including issues in education, health, or child development, police, courts, welfare, jobs etc. What I argue is that the biggest obstacle to meeting these challenges is the effectiveness of the government machinery itself. Until you systematically invest in strengthening the capacity of the Indian state, we will not be able to reach our full potential as a country.” More from Alex Tabarrok.
ET: “Kota, a city in Rajasthan, has emerged as a magnet for aspiring students across India, particularly those preparing for competitive exams like JEE and NEET. Known for its coaching institutes that offer structured and rigorous training, Kota has become synonymous with academic excellence and success in entrance examinations. Thousands of students flock to this city every year, driven by the promise of realising their dreams of becoming engineers and doctors…Kota’s coaching institutes offer extensive support beyond academics. In 2023, approximately 250,000 students received coaching in Kota, with more than 85,000 new admissions by May. The city accommodates these students with around 4,200 hostels, 25,000 PG rooms, and numerous one-bedroom apartments, which are rented by parents and guardians.”
Ruchir Sharma on his new book: “I think what I argue in the book today is the fact that the system we currently have in place in America is not really capitalism as it was meant to be. It is a very distorted form of capitalism. It is what Bernie Sanders and all called socialism for the rich. What I try and say is that it is not just socialism for the rich but socialization of risk. When risk has been socialized, the role of government has also increased. Whether it’s regulation, or the way the US Federal Reserve manages the business cycle, all that has changed so dramatically now that this is no longer anything close to the capitalist system that the founders once had in mind…In America, right up until the 1970s, capitalism was working. And America has had a democracy for over two centuries. This disaffection with capitalism that’s taken place in America is really something which is a phenomenon of the last two or three decades. This is a cynicism that has come only in the recent past. But this is not how America used to be.”
Andy Kessler: “The fade has begun. AI is being dial-toned, hidden behind apps and devices, or eventually to some new efficient interface. Twenty dollars a month for ChatGPT-4o doesn’t pay for all those Nvidia chips. New products, markets and business models are needed, much as PCs spawned desktop publishing and expanded investment banking. And smartphones enabled Uber. Something’s got to pay for the dial-toned technology. As AI grows more productive and disappears, the less interesting it becomes as an investment. Current hot AI stocks will have to grow into their hype. Remember, it took Microsoft more than 15 years to reach new highs after the dot-com mania. Investors will start looking for even cooler new things: Customer-service systems that don’t have us screaming “Operator!” Digital twin assistants to sit on Zoom calls. Automatic software coders. Your car as a robotaxi when you’re not using it. Loneliness-reducing companions for seniors. Robot factory workers. They’re all coming. Enter your wish list when you hear the dial tone.”
