Sunday, August 13, 2006

tying........so very relavant


i usually make fun of economics in my posts. But its a pretty interesting and relevant subject. Why? Coz many a time it actually helps us relate to what is actually goin on in the real world.
The other day, we were taught the concept of tying. Its something like when a manufacturer or rather a seller sells a good, he puts a precondition that u have to buy another good of his with it. Its like u buy a photostat machine, u also HAVE to buy 100 bundles of paper with it. THe compulsion can be disguised in a way that the consumer feels that he is benefitting, or it might also be blatant.
In one of the blatant examples of tying given in class, the prof mentioned the way the zamindari system usually operates in india today. the farmers usually are in a need of money, and the only source is the local moneylender. the money lender is usually also the zamindar. The farmer is given the money, with the slight precondition that he will have to sell his produce to the zamindar only, rahter he will be able to sell his produce to no one but the zamindar. And the zamindar would pay the appropriate price for it. sounds fine right.
the fish has taken the bait.
now the farmer cant sell his produce to anyone but the zamindar. The zamindar buys the farmer's produce at a cheap rate and sells it at a much higher rate. the farmer is worse off.
such practices and many more have been very aptly described in the book "everybody loves a good drought". I dont remember the name of the author. It is one book that would really touch your heart.
wen one drinks a glass of water half and throw away the rest, he should not forget that in our very own country, there still are women who walk for over 20 kms thru trying terrian to get a day's drinking water. there are many more such real life stories in that book. i am really thankful to the person who gave it to me for reading. Before reading that book, i hardly realized the profoundness of poverty in our country. But i wont be exagerrating that after reading that book, i have decided to something for the society for the rest of my life once i am start earning. In fact even now, i am thinking of joining the NGO in our institute. Probably in the next term i would join it and try and contribute my part.
talking bout NGO's i still remember my IIFT interview, when one of the interviewers asked me of something i want to do in the future. I had mentioned vaguely my career interests and had also mentioned that i would like to set up or be part of an NGO (me n a few of my friends actually do have ideas..lets see if they fructify). he laughed. He actually laughed when i mentioned my desire to join n NGO and said that every other candidate says that. I dont blame him too. I guess every other candidate does say this. The only way i can stop people from laughing is by actually doing something for the society. Coz as of now, i am just one of those people who just say that we will do something.
But i am sure i will.
small things like books can actually change people a lot. But then that is a topic for discussion in another post :o)

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2 Comments:

Blogger Hitchhiker said...

I hope u join :) and if you are planning to start, do tell me, I will support you. I will be the person providing the moral backing ;) or even a lil bit of financial backing ;)...Kidding, would join in anytime :)

3:24 PM  
Blogger Anurag said...

i know i can trust u on this.... :)

3:27 PM  

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