Archive for April 30th, 2015

How unchecked success leads to corruption/greed/failures – a case of Sri Lankan cricket

April 30, 2015

This piece in Cricket monthly magazine (requires free subscription) is on the famous number in cricket. One expert says it is 99.94, another says it 0 (duck), another points to 365 by Clive Lloyd and so on.

Vithushan Ehantharajah says it is 1996 when SL won the World Cup against all odds:

A “World Cup legacy” is a strange thing. It is a magnanimous yet malleable entity that can be forced into any shape to fit a particular narrative, often one of an everlasting love brought about through the healing power of sport.

It is, ultimately, nonsense.

The sight of Aravinda de Silva, sleeves billowing in the Lahore evening air for an unbeaten 107, taking Sri Lanka through to their maiden World Cup win, even now takes me back to 1996. I was crouched, battling with a cousin for floor space next to the radio, which was doing its darnedest to spit out what it could of this faint, long-wave broadcast. This isn’t a side-street cobbler in Jaffna, by the way – this is St Stephen’s Road, Ealing. “It really changed the fortunes for Sri Lanka cricket,” said de Silva, in an interview in 2013. By that point, he had taken on a number of roles within Sri Lanka Cricket, including chairman of selectors, in a period that saw the relationship between the country’s players and administrators at an all-time low.

The reason? Greed and corruption stemming from that World Cup victory. It was Sri Lankan cricket’s tipping point. The team members became marketable assets and there was money to be made. The board, run by volunteers up to this point, was suddenly part of a multi-million dollar organisation. Gradually the well-intentioned were eased out and the politically savvy, self-motivated moved in. They have yet to be displaced.

Almost 20 years on, there has been little drive or consistency from those on the countless selection panels and interim committees. They simply line their pockets, boost their profile and move on. Voting was often rigged for the highest bidders, and AGMs could be violent affairs, with intimidation frequently the strongest currency.

Financial impropriety meant the government had to step in and dissolve its own appointed interim committee, as the board found itself saddled with US$23 million of debt after the 2011 World Cup.

Prior to that competition, which Sri Lanka co-hosted, just as they had done in 1996, Kumar Sangakkara had offered his resignation as captain, having become disillusioned with tasks that included negotiating the contracts of other players and battling constant political interference. He eventually relinquished the role after Sri Lanka’s defeat in the final to India, but his gripes featured prominently in his MCC Spirit of Cricket Cowdrey Lecture at Lord’s, delivered later that year.

In 2012, Arjuna Ranatunga, the captain in ’96, condemned the state of the SLC after their first elections in seven years ended in controversy, with one of the two groups contesting withdrawing because of political interference in the process. During Ranatunga’s brief tenure as SLC chairman in 2008, he felt the effect of that interference when he was sacked by then sports minister Gamini Lokuge without any hearing.

Perhaps most galling of all is the transformation of Sanath Jayasuriya, Player of the Tournament in ’96. In 2010 he became an MP, representing the party of President Mahinda Rajapaksa, the United People’s Freedom Alliance – the same government suspected of serious war crimes within Sri Lanka by UN and human rights organisations. Jayasuriya was then appointed as national selector by sports minister and fellow UPFA member Mahindananda Aluthgamage. Since then he has been embroiled in countless disagreements with players, ranging from contract disputes to quarrels with Sangakkara and Mahela Jayawardene, who have used their profiles to aid the team over their national board.

The glory of that March evening at the Gaddafi Stadium inspired a nation. Unfortunately, it also created an administrative monster that shows no sign of changing its ways.

Legacies aren’t all they are cracked up to be.

Superb. We keep talking about similar things in most walks of life. Don’t let success get to your head.

Also, it reflects on the quality of cricket institutions in Asia and other countries. Asian countries which won the World Cups like India, Pakistan and SL all have seen mountains of corruption rising. Whereas countries like Australia have prospered with no such signs. Whereas it is mostly professional in Aus cricket governance., it is mostly corruption in Asian counterparts.

India has still managed to surge ahead given the huge population and craze for the game. They are bale to play the players and so on. Same isn’t the case with SL and with Pakistan it is a different story altogether..

 

Advertisements

A whacky and fun filled blog on Indian economy

April 30, 2015

It is rare to get good blogs on Indian economy. And then to stumble on a good one which is humorous and whacky is like icing on the cake.

This blog called Manasiecon is one such blog. It is run by Prof. Manasi based at Pune.

Read this for intro:

…..I have a truly wacky, weird and fun family (including my husband, a consultant on company law and a rather inquisitive and sweet and troublesome 11-year old son) and an assortment of strange and wonderful friends, associates and students around me, the interaction with whom too culminates into “random thoughts” and mad articles. While these are not really economics oriented, they do take off on my innate sense of economics, which really pops up unexpectedly, in the strangest of circumstances.

So welcome to my blog….if you are the serious types, you really need to only read blogs/posts categorized as “Articles on Economics”. Don’t even attempt getting into my random thoughts.

For all others, enjoy!

🙂

Sample this for some of the posts:

Really interesting stuff..

 

WhatsApp turns into a trading platform..by guess whom?

April 30, 2015

By a group of Gujarati traders/farmers of course.

They know how to make money out of most things:

Rajkot-based agriculture entrepreneur Dinesh Tilva has turned popular social media app WhatsApp into a classifieds marketplace that allows farmers to trade goods such as grains, vegetables, seeds, irrigation equipment and tractors, among others. He moderates all the ads and broadcasts them to nearly 1,500 contacts in his smartphone. Most of these contacts are farmers, while some are traders of fertilisers, seeds, farm equipment, while a few are agents dealing in land and property.

“I started this about two years ago and now I am connected to nearly 1,500 farmers and traders. They send me a post and I broadcast it through WhatsApp,” Tilva says, adding that such is the flooding of posts that every morning he has to format the app. Farmers from across Gujarat, mostly from Saurashtra and central parts, find the system beneficial for them.

“This practice is very convenient for us. If we wanted to buy a Gir-breed cow, it usually takes an entire day to locate one and if it isn’t fit, you just waste the day. But now, we can see the picture of the cattle and decide accordingly. It saves time, energy and money,” says Jagani of Kuvadva village.  We get valuable information through this. It gives us the power to negotiate directly with the buyer or seller,” said Kher Vanrajsinh from Halvad, who recently posted an ad to sell 20 kg garlic.

Tilva says most farmers own entry-level smartphones which are compatible with WhatsApp. “Those who are unable to participate in the system are assisted by their peer or relatives,” says Tilva. Tilva has also installed the app on his desktop computer and says he is a one-man army and does not charge for the service.

🙂

Why have all these so called business schools? Students interested in business should be touring Gujarat instead and learning superb insights from them..

A new buzzword – frontier economies?

April 30, 2015

I was reading this recent post on capital flows from IMF in frontier economies. I assumed frontier economies to be another name for emerging economies. But no, it is a different class as explained here:

There is a group of fast-growing low-income countries that are attracting international investor interest—frontier economies. Understanding who they are, how they are different, and how they have moved themselves to the frontier matters for the global economy because they combine huge potential with big risks. 

Get to know them  

The first thing to note is that some of these countries already have moved to the lower-middle income group. While a working definition of frontier economies is subject to further discussion, broadly speaking, these countries have been deepening their financial markets, such as Bangladesh, Kenya, Nigeria, Mozambique, and Vietnam.

Some also have been able to tap the international capital markets, such as Bolivia, Ghana, Honduras, Mongolia, Nigeria, Senegal, Tanzania, Vietnam, and Zambia. Their markets are, however, not as deep and liquid as those of the emerging markets, but compared to the latter, they offer higher returns and the benefits of a diversified portfolio.

Really? Another buzzword called frontier economies. IMF is another champion in all these naming gaming and creating buzzwords.

Further:

Many frontier countries are growing at a fast pace, in most cases helped by sustained efforts to achieve macroeconomic stability, and by building business-friendly institutions ( Chart 1). These economies have also made significant efforts to lower inflation through prudent fiscal and monetary policy ( Chart 2).

Most of these countries have made progress in strengthening their policy making apparatus, reducing excessive red tape and lowering trade restrictions. Reforms to change their economic structure have helped them unlock their potential, including  greater weight on the services sector, such as in Tanzania and Kenya.

In many countries, alleviation of their debt burden over the past decade has freed up money for investments in physical and human capital. Several countries received debt relief under the Highly Indebted Poor Country Initiative, but others reduced their debt outside this initiative, such as Kenya, Mongolia, Nigeria, and Vietnam.

These countries have deepened their financial markets at a fast pace—they offer more domestic financial services and products than their peers. Some have attracted international investor interest in their domestic bonds market and several have issued sovereign bonds in the international capital markets ( Chart 3).

Access to international capital markets means these countries can attract financing to address gaps in infrastructure, such as roads and railways, which could provide further impetus to growth. But as described below, market access also poses new financial risks that countries need to carefully manage.

Influences from outside their borders

Low interest rates combined with advanced economies shedding debt have pushed investors to search for higher returns on their investments, which has expanded their interest to invest in frontier economies.

The quest for resources by emerging economies has contributed to improved terms of trade and a surge in both domestic and foreign investment in resource-rich countries, such as Bolivia, Ghana, Nigeria, and Mongolia.

Domestic public investment has increased as the low debt burden, favorable external borrowing rates, and high commodity prices have increased access to private financing sources outside their borders. 

Just another group of countries which have shown some recent promise.  And all these are countries which soon are called lost ones as well..

How Irish cricket is trying to adopt the New Zealand model of cricket..

April 30, 2015

We usually see countries trying to adopt successful examples from other countries in all walks of life. In economics particularly, there is always so called best practices (which becomes s laundry list eventually) which leads to a great economy.

Same thing is seen in sport too. NZ cricket was the talk of the town this World Cup. In last few years, NZ played a brand of cricket  based on highly aggressive and attacking cricket. To see seven slips is such a rarity even in test matches but NZ had it in recent ODI world cup. They were expected to be finalists and they did become one without losing a match only to be overplayed by the awesome Aussies.

In cricket, we usually see teams adopting the highly successful Australian model. But here is this interesting article by Tim Wagmore on how Irish cricket is taking lessons from NZ cricket:

(more…)


%d bloggers like this: