Archive for February 3rd, 2016

When negotiating a price, never bid with a round number

February 3, 2016

Interesting research on bidding. We usually round off numbers but while bidding make a precise offer. It signals the seriousness of the bidder:

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Why PMGSY (rural roads scheme) has performed better than MGNREGS (rural jobs scheme)?

February 3, 2016

Mr. NC Saxena has a nice detailed post on the topic.

He goes into the details of the two government schemes and points why PMGSY (Pradhan Mantri Gram Sadak Yojana) is better than MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme):

The central hypothesis that I wish to explore in this paper is that when a programme is well designed, adequately funded and frequently evaluated it does well even in so called BIMAROU or backward states. On the other hand, if the design is flawed programme does poorly even in better governed states. ICDS is designed to target children mostly after the age of three years when malnutrition has already set in. Very little of the ICDS resources, in terms of funds and staff time, are spent on the under-three child and this low priority must be reversed, otherwise its impact on reducing malnutrition will remain illusory. The primary responsibility of initiating correction in the design of such faltering programmes is that of the central Government.

Carrying this argument further, let us closely examine two somewhat similar programmes—PMGSY (Pradhan Mantri Gram Sadak Yojana) and MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme)—both initiated and supervised by the Ministry of Rural Development and discuss how their design affects their outcomes at the ground level.

Apart from PMGSY having a better design, building good quality roads usually makes more sense than other poverty related programs.


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