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Obama’s Regulatory Deja Vu
Published on : Thursday, January 27, 2011
President Obama, in his State of the Union address Tuesday night, was right to focus on the challenges the United States faces as domestic companies try to compete with low-cost global competitors. But he was wrong to suggest that the United States can “win the future” by getting Washington more involved in innovation and education. Federal regulations are as responsible as anything for America’s lagging competitiveness. The solution is not another dose of regulatory review, but a curb of Washington’s regulatory powers, writes William F. Shughart II in The Independent Institute Newsroom.
Another anti-reform thrust
Published on : Tuesday, January 04, 2011
The Essential Commodities Act (ECA) will presumably be tightened up. ECA may seem to date from 1955, but its origins go back to Defence of India Rules, 1939, and war-time shortages. It imposes controls on production, supply and distribution of essential commodities and the act itself defines some items as “essential”.ECA and its orders didn’t reduce shortages. Non-reform of agriculture has led to shortages (and inflation) now. Land has been diverted to other uses, writes Bibek Debroy in The Indian Express.
The Inequality That Matters
Published on : Saturday, January 01, 2011
The growing income inequality is not a sign of the downfall of the American Republic. Most average Americans don't care about income inequality. The things a middle class American shared with Bill Gates is much more important than what he doesn't. It is the intellectual class which wages the battle against income inequality. There are cases in which income inequality matters. We do not have remedies for the hazards created by the financial sector where income inequality really matters, writes Tyler Cowen in The American Interest Online.
Fred Kahn’s first-class flight
Published on : Friday, December 31, 2010
Alfred Kahn, 93, passed away this week. He had played a key role in the 1970s deregulation of US airline fares. It is an achievement which saves Americans a stunning $20bn annually. Kahn’s contributions to electricity regulation and telecommunications policy were even more important. Under Kahn, CAB's charter collapsed. Fares were deregulated, and the CAB closed shop – by a 1978 act of Congress – in 1985, writes Thomas W. Hazlett in Financial Times.
Corruption business faces
Published on : Friday, December 10, 2010
Saratov Chamber of Commerce and Industry undertook a project with an objective to reduce corruption of a certain variety. The fndings were that legal regulation is effective, effective laws lower corruption, and implementation lags behind enactment of laws.Reform principles are the same everywhere. The short point is that this isn’t on the agenda as much as it should be, writes Bibek Debroy in The Indian Express.
Shovelling away
Published on : Tuesday, November 16, 2010
The World Bank has just brought out a volume titled India’s Employment Challenge, Creating Jobs, Helping Workers. Indian labour markets are segmented; they are segmented geographically. A large part of the answer on why labor markets are not flexible lies in labour market regulations and these can be divided into those that are wage-related, safety-related, social security-related and industrial-relations related, writes Bibek Debroy in The Financial Express.
Killing microfinance will help moneylenders
Published on : Sunday, October 24, 2010
Last week, the Andhra Pradesh government issued an ordinance that temporarily shuts down and permanently maims Microfinance Institutions in the state. The Government claims that coercive loan recovery by MFIs have caused thirty suicides. While we need a regulatory regime to curb excesses, but there is no need for politicians to empower people through opening up access to microfinance, writes Swaminathan Anklesaria Aiyar in The Economic Times.
The public sector advantage
Published on : Wednesday, October 20, 2010
Going strictly by the rulebook, what Coal India mgmt have been doing in the last few days would have raised the eyebrows of the markets regulator. Of course, both the Coal India chairman and the minister may seek refuge in the alibi that they did not say anything that had not already been mentioned in the prospectus issued for raising money from the market. Technically they are right, but there is no denying that the tenor of those statements will always remain questionable.
CCI should not try to be a super-regulator
Published on : Tuesday, September 28, 2010
Companies have no choice but to provide all the information that the director general of investigation of the Competition Commission of India may seek. They cannot appeal against such preliminary investigations before the Competition Appellate Authority and seek a stay on such inquiry. It is an old practice and a major reason for huge backlog of cases before various courts and tribunals across the country, writes Tina Edwin in Economic Times.
Why price regulation for TV?
Published on : Tuesday, August 17, 2010
Indians pay close to zero for newspapers, which is a fraction of its production cost. They have rejected paying for radio, but are willing to pay for movies of pay-per-view channels. The Governemnt hasn't thought of price regulation in any of these industries. But, it wants to regulate the price of TV. Why can't TV operate without regulations? , writes Vanita Kohli-Khandekar in Business Standard.
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