Archive for December 16th, 2013

How Malaysia liberalised its financial sector?

December 16, 2013

Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia has a nice short speech covering the topic.

There were many preconditions before the reforms really began. Even with most preconditions achieved, it was a slow and gradual path to reform..

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Faber-Castell and its pencil empire – a case study..

December 16, 2013

A nice article in NYT. While writing with a pencil, we hardly pay attention to the dynamics of pencil industry. It is a very simple product but has such power.

Jack Ewing of NYT has this nice short article on how Faber Castell manages to keep its pencil empire going (HT: Urbanomics).

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Grading Abenomics’ Three Arrows – get an A, B and E

December 16, 2013

Koichi Hamada, Special Economic Adviser to Japanese Prime Minister Shinzo Abe and Prof at Yale University grades the three arrows of Abenomics – monetary stimulus, fiscal stimulus and expanding Japanese economic potential.

Interestingly he grades the three arrows – an A, B and E – similar to the name of it originator -Shintzo Abe…:-)

First why the name three arrows? It is based on this old Japanese tale:

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Why did GoI set up Planning Commission?

December 16, 2013

Planning Commission has put up the original copy of the Govt of India  resolution that led to setting up the former.

For some years past, the people of India have been conscious of the importance of planned development as a means of raising the country’s standard of living. This consciousness found expression in the appointment in 1938 of the National Planning Committee by the Indian National Congress. The work of the Committee was, however, interrupted by political and other developments in the beginning of the war, although much useful material has since been published. In 1944, the Government of India established a separate Department of Planning and Development and at its instance, the Central as well as the Provincial Governments prepared a number of development schemes to be undertaken after the war. Problems of planning were reviewed towards the end of 1949 by the Advisory Planning Board which was appointed  by the Interim Government of India, an important recommendation of the Board being the appointment of a Planning Commission to devote continuous attention to the whole field of development, so far as the Central Government was concerned with it.

During the last three years, the Centre as well as the Provinces have initiated schemes of development, but experience has shown that progress has been hampered by the absence of adequate co-ordination and of sufficiently precise information about the availability of resources. With the integration of the former Indian States with the rest of country and the emergence of new geographical and economic facts, a fresh assessment of the financial and other resources and of the essential conditions of progress has now become necessary.

Moreover, inflationary pressures inherited from the war, balance of payments difficulties, the influx into India of several million persons displaced from their homes and occupations, deficiencies in the country’s food supply  aggravated by partition and a succession of indifferent harvests, and the dislocation of supplies of certain essential raw materials have placed the economy under a severe strain.

The need for comprehensive planning based on a careful appraisal of resources  and on an objective analysis of all the relevant economic factors has become imperative. These purposes can best be achieved through an organization free from the burden of the day-to-day administration, but in constant touch with the Government at the highest policy level. Accordingly, as announced by the Honourable Finance Minister in his Budget speech on the 28th February, 1950, the Government of India have decided to set up a Planning Commission.

Has objectives of Plan com as well..

Nice bit of really brief history of Plan Com..though some may say this is the moment where the trouble for Indian economy started..


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