Sonntag, 27. September 2009

Perfect Outsourcing

A coutry can do nothing and still remain at top for ever.

For simplification of argument let's say a developed conutry decides that its citizens need not work at all, except to be at (probably) management position. Work will be done by inviting all the third world laborers. This will work.

Now a citizen needs food, cloth, home, luxury etc. To cater one citizen of country A, say 5 third world laborers are working in that country. Also assume, every laborer gets decent salary (so that best of the people at third world coutries vie to come to country A), but never a citizenship(understandable). A typical income-tax on country A is 33%. Say in the perfect scenario, this tax is routed as social-security for its citizen. So 5 laborers will provide the citizen not only only as good as 100% of their salary (which should be less than 100% because earning citizen will also have to pay some tax), but also 66% extra, besides producing all that citizen needs.

So country A:
1) Gets everything done for its citizen who need not do anything for living
2) Gets an extra income in its treasury, equal to 66% of the one person's salary, much more than what if everyone of its citizen would have worked and paid taxes.

Say if all the people are from same 3rd world country B, then B gets:
1) Income not by tax (because single taxation allows tax at location i.e to country A only) but by percolation/spill effects i.e if these laborers return home and spend on things at home country.
2) Still aspire to become next best i.e number 2 position.
3) It will still be a lucrative option, to monopolize the service industry otherwise there are others to offer services


The basic assumption is that following is ruled out:
1) Idle people at country A lose competency(with technological advances etc) to stay at top. Country B becomes assertive and after becoming number 2, forcefully acquires the number 1 position.

Now to calculate odds of the above risk.....
Say all salaries are equal. Per citizen A has more than 66% of salary (assuming the citizen consumes the whole of their 100%) that it needs to plough back to retain its competency (R&D, Buy-outs, creating rivals for B etc). Wait, even 100% salary that A's citizen is earning is after his requirements are fulfilled by the work of 5 laborers(i.e for free). Per citizen B has less than 66% salaries (assuming they use whole of their after-tax salary for home-country-economy).

Chinese must surely have thought about this.

India among most corrupt nations

Is the corruption, symbol of dynamism. Read this article.

India is stated to be one of the most corrupt countries, Germany is one of the least. On saturday session, on 45 minutes lunch break just went to a restaurant (one of the very few open), wanted to grab something quick, odered menu like cake and coffee, potato soup, sandwiches, chocolate shake and reminded the guy 10 times that the time for us is short. But time it took. Good 30 minutes after we placed order.

Now to reassess corruption et al in India. 1st, there will be no dearth of options of eateries on weekends and 2nd they will be quick to make 'Jugad' if requested. Another similar example is bargain, a true delight for a shopper, something unheard in this part of world.


Isn't one reason of corruption is originating from 'Jugad' that we enterprisingly make which is mis-understoood to be against the rule-book. In case of bargain, if the shop keeper sold me a book at Rs 100/- and to my another friend bough the same in Rs 80/-, I will feel cheated. But how many of us complain if Thanksgiving price is 80$ and the same if purchased in Christmas reaches 100$ at big superstores. Is it by the psychology that randomness is painful, organised is beauty.

Not an excuse, just I am not sure if such factors are assessed and if to improve our ranking, we might lose on some of our beauty with randomness.

Freitag, 11. September 2009

Asta la Vista

Time to be self indulgent...last day in London, importantly last day of a phase...have quit everything for an utopia. Tomorrow I begin a new phase, off to Berlin to be younger as a student, old of so many things and independent of time as a lover.

All for that knowledge, to justify event(present)/past, to predict forthcoming. True sciences -physics/chemistry/biology - do so, social sciences don't. (Was Jesus the most knowledgeable person who besides telling stories(past) could predict own death).

Engineering and MBA are the disciplines, try to build/maintain something. The knowledge no doubt is a mandatory component and should be streaming always.

Am I trying to be emotional....am I good at it...do emotions catalyze (positively/negatively), are there good-bad emotions...immediate thing is packing my bags, no time for emotions then.....