5 Comments
Apr 2Liked by Pranay Kotasthane

Loved the part on Bangalore's water struggles. The electricity sector in Karnataka too is seeing regressive pricing, would love to hear your take on it

Expand full comment
author

thanks. Will study that. We had written in 2017 that subsidies extended to ailing ESCOMs alone amounted to half of Karnataka's total subsidy bill. Must check the latest numbers.

Expand full comment

Ah cool, will look that up!

Expand full comment

It appears to me that the framework of Wicksellian Connection, by making accountability more precise, addresses government failures like time shifting and logrolling. The assumption, I guess, is that the three ‘A’s of policy implementation (ability, authority and acceptance) coincide.

— — — —

Wicksellian Disconnection and Time Shifting:

The new parts of the city don’t enjoy the benefits of subsidised Kaveri water but pay for it. This is time shifting made possible by a disconnection between those who pay and those who benefit.

— — — —

I guess that beyond phasing out the subsidies linked to Kaveri water its price should also reflect the negative externalities imposed on new parts of Bengaluru.

Expand full comment

Excellent post on multiple topics. The contradiction in the Lok Sabha elections - if it is a no-contest, why the paranoia? - is nicely brought out.

The chips war is highly unpredictable - while the questions on China's approach are indeed valid, it is not as if things are going to plan for the US. TSMC, for example, is finding it very inefficient and frustrating to operate in the US, and not just for price reasons. The skillset, the mindset of workers - none of those are a good match in the US. When the US shook things up so violently on such a critical aspect, it will take a long time for the dust to settle. And there is no guarantee as to who will benefit the most at the end of it all.

The Bangalore water problem is explained very nicely - both from a historical as well as policy perspective. Nicely done!

Expand full comment