A colleague in my office is from Rewari, a town in haryana just a few kms off the highway to Jaipur. He has some exciting anecdotes to share each time he comes back from Rewari after a vacation. And like every time this time round, he had invited me for a cup of coffee to the coffee room, where we exchanged pleasantries in addition to christmas greetings. Now that we had both entered the lets-come-to-the-point!- mode, he began elucidating on the level of financial innovation in small towns in the land-rich north Indian states. I was aware of the richness of these land-rich states, the heightened level of common sense amongst the local populace and (not to forget) the enterprising spirit which is better termed as "jugaad". So it wasn't really surprising for me to hear that Farmer A made X amount of money by lending it to a chit fund Y and so on and so forth. Interestingly, my colleague touched upon a point that absolutely eluded me.
Currently, a new scheme has caught the fancy of young/middle aged farmers in these states and has become topical in the evening meetings at the local panwarri (redi for some). The scheme gained immense popularity solely on the word of mouth. I mean you know how the word spreads. An excerpt -"Ganganagar's Mosi's Nanad's Chachchera brother paid Mr X Rs. 13,000 and good heavens he received Rs 26 lakh in 3 years"- And while listeners slurping on warm tea stare at this master storey teller, in awe... Mr X's agent gets his bait! So, Mr X has his tentacles spread scross these villages/states involving thousnads and thousands of investors beset by greed and day-dreams (as if nights were not enough). An astute investor, unlike myself, would say " Damn this! I am sure to lose". The probability of a person benfitting from such a scheme depends on one simple Queueing concept called "FIFO" (First in First out). As long as you are at the bottom of the pyramid, your chances of benefitting are high. And every level you move upwards, your chances diminish. Unfortunately, if you are at the top of the pyramid, the onlyoption left for you is to JUMP!
Yes, I said pyramid! That is what I was getting at, the point my colleague was trying to make.
Pyramid= Ponsii scheme= Madoff scam
We have miniature Madoffs in our country swindling cash off uneducated investors and thatching scams like no tomorrow. I don't know if this phrase has ever been used but they are Economy Hackers!
Now coming to what I vehemently wanted to write about.. my journey from Delhi to Jaipur and back. It took me 7 hrs to reach jaipur and 8 hours to return to Delhi. Its an experience of mixed feelings as you know one does like to form opinions, pass judgements and then inevitable reach conclusions. The story that I narrated in the paras above is connected. The NH-8 seems to be the financial lifeline of this country. Any body who sets up shop on this highway is bound to hit a Jackpot! Over the years of traveling to and from from Delhi to Jaipur, what does one see? Other than just widening of roads and increasing traffic, the trickle down effect of urban economies to villages which in as many as 10 years have turned into townships, where Hero Honda is the new bi-cycle and mobile phone is just another necessity. Towns like Dharuveda and Kotputli, where in the erstwhile 90s one would find vendors lined up on the hihway selling fresh carrots and raddishes, today has had an ugly face lift. The beauty of the mustard fields is hidden by two-storey buildings painted in tasteless colors, geometrically shaped factories and an unnerving filth by the road side. Traffic Jams often invite snarls from harrowed and uncivilized drivers and while one hp[es to reach Jaipur in 5 hrs, it takes 1 hr each to meander, albeit bumper to bumper, through these mini-sub-urban economies. Remember the Panipat of NH-1 wit out the flyover. Well, just square that and add it to infinity. That’s what you can expect this time when you drive down to Jaipur.
So like a pseudo-economist and with political innuendos, I rest my case – Development comes at a cost i.e. increase in travel time!
Currently, a new scheme has caught the fancy of young/middle aged farmers in these states and has become topical in the evening meetings at the local panwarri (redi for some). The scheme gained immense popularity solely on the word of mouth. I mean you know how the word spreads. An excerpt -"Ganganagar's Mosi's Nanad's Chachchera brother paid Mr X Rs. 13,000 and good heavens he received Rs 26 lakh in 3 years"- And while listeners slurping on warm tea stare at this master storey teller, in awe... Mr X's agent gets his bait! So, Mr X has his tentacles spread scross these villages/states involving thousnads and thousands of investors beset by greed and day-dreams (as if nights were not enough). An astute investor, unlike myself, would say " Damn this! I am sure to lose". The probability of a person benfitting from such a scheme depends on one simple Queueing concept called "FIFO" (First in First out). As long as you are at the bottom of the pyramid, your chances of benefitting are high. And every level you move upwards, your chances diminish. Unfortunately, if you are at the top of the pyramid, the onlyoption left for you is to JUMP!
Yes, I said pyramid! That is what I was getting at, the point my colleague was trying to make.
Pyramid= Ponsii scheme= Madoff scam
We have miniature Madoffs in our country swindling cash off uneducated investors and thatching scams like no tomorrow. I don't know if this phrase has ever been used but they are Economy Hackers!
Now coming to what I vehemently wanted to write about.. my journey from Delhi to Jaipur and back. It took me 7 hrs to reach jaipur and 8 hours to return to Delhi. Its an experience of mixed feelings as you know one does like to form opinions, pass judgements and then inevitable reach conclusions. The story that I narrated in the paras above is connected. The NH-8 seems to be the financial lifeline of this country. Any body who sets up shop on this highway is bound to hit a Jackpot! Over the years of traveling to and from from Delhi to Jaipur, what does one see? Other than just widening of roads and increasing traffic, the trickle down effect of urban economies to villages which in as many as 10 years have turned into townships, where Hero Honda is the new bi-cycle and mobile phone is just another necessity. Towns like Dharuveda and Kotputli, where in the erstwhile 90s one would find vendors lined up on the hihway selling fresh carrots and raddishes, today has had an ugly face lift. The beauty of the mustard fields is hidden by two-storey buildings painted in tasteless colors, geometrically shaped factories and an unnerving filth by the road side. Traffic Jams often invite snarls from harrowed and uncivilized drivers and while one hp[es to reach Jaipur in 5 hrs, it takes 1 hr each to meander, albeit bumper to bumper, through these mini-sub-urban economies. Remember the Panipat of NH-1 wit out the flyover. Well, just square that and add it to infinity. That’s what you can expect this time when you drive down to Jaipur.
So like a pseudo-economist and with political innuendos, I rest my case – Development comes at a cost i.e. increase in travel time!
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