tag:blogger.com,1999:blog-5043138489010794057.post1634185612996406364..comments2024-03-27T15:57:09.192+05:30Comments on Urbanomics: Social empowerment and economic growthUrbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5043138489010794057.post-41371326339122677582010-08-01T08:25:09.400+05:302010-08-01T08:25:09.400+05:30Jayadeep,
I could not resist posting this quip f...Jayadeep, <br /><br />I could not resist posting this quip from the late Joan Robinson about underemployment in South-East Asia, "the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all"!Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-56007559207582408012010-07-27T08:42:25.147+05:302010-07-27T08:42:25.147+05:30as i said look northwards to China (and historical...as i said look northwards to China (and historically too, all of East Asia)... <br /><br />nothing can take away from the fact that over the last quarter century, the country's poverty rate (defined at number of people living below $1 a day) has dropped from over 60% to just 13% today as the Chinese "economic lift has rocketed upwards". i would call this sustainable, even if the "lift" stays still from today. there have been costs, but when weighed by any utilitarian calculus, the net benefits outweighs the costs.<br /><br />about labor vulnerability, therein lies the importance of strong social security nets (just a small portion of the revenue increases due to such growth will be enough to fund them). <br /><br />and jayadeep, i am not in agreement with the moral dimension. i will stick my neck out and argue that twenty years down the line our companies will be vying to do the same with Africa as the the continent becomes the latest generation in the flying geese model. <br /><br />and yes, urbanization is required and there will be slums. but have in place policies to address them instead of shutting off the growth opportunity. again historically too, I cannot remember one example of massive economic growth, on scale, that has not be urbanization-driven.Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-52603394661807245382010-07-26T10:01:33.675+05:302010-07-26T10:01:33.675+05:30Problem with this kind of empowerment is that it i...Problem with this kind of empowerment is that it is solely based on cheap labor, not because a new industry with a good ecosystem is coming up. So when things are not going very well in the western markets, it impacts these people as well. I am not so sure if it is a sustainable thing. And at a macro-level, this is nothing but exploitation of poor people and resources in this region by the western businesses. All of these needs massive urbanization and creation of slums(housing for migrating population) which has an irreversible impact on the environment. While you may have data to show progress, but I would worry about the sustainability of that progress.Jayadeep(JDP)https://www.blogger.com/profile/13871541935050882722noreply@blogger.com