Ashok Sanjay Guha speaks on his latest book Economics without Tears: a New Approach to an Old Discipline published by Penguin Random House India, which is revelation of economics to the layman, demonetization drive and more.
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Talks on economics might go over your head if you do not that
background. But what if it is made easy for you without giving you grief? That
is what Ashok Sanjay Guha has done for you in his book Economics without Tears: a New Approach to an Old Discipline. It is
economics revealed to the layman without the difficult language or jargons to
confuse you. Right from basic theories to some in-depth ideas, Guha makes sure
every reader connects with economic concepts easily. It is published by Penguin Random House India.
Professor Emeritus at the School of International Studies, Jawaharlal Nehru University (JNU), Ashok Sanjay Guha has been with this institute since its beginning as a professor of economics. A visiting professor prominent educational places the world over, he has written in important write-ups in leading economic journals, he has also written An Evolutionary View of Economic Growth.
Professor Emeritus at the School of International Studies, Jawaharlal Nehru University (JNU), Ashok Sanjay Guha has been with this institute since its beginning as a professor of economics. A visiting professor prominent educational places the world over, he has written in important write-ups in leading economic journals, he has also written An Evolutionary View of Economic Growth.
Did any experience made
you think of writing this book to demystify economic jargons for the public?
The book is the outcome of my classroom encounters with bunches of
very bright students whose primary interests lay outside economists and who
were terrified of maths.
What aspects can we expect
in this book? How have you tried to cover them?
The book introduces economic theory to the general reader, starting
from first principles, avoiding Maths altogether and seeking to capture his
interest right from the outset by emphasizing the applicability of economic
principles to areas outside conventional economics. In the process, it
clarifies even some of the most advanced and contemporary concepts in economic
theory without using mathematical methods or jargon.
There might be books out
there on similar lines. How will yours differ?
As far as I know, there are no other books that try to give the
general reader a glimpse of the entire canvas of economic theory. There are of
course similar books that touch upon specific areas of the subject. There are
also very popular & entertaining books that apply economic methods to a
wide range of problems. One such is Steven Levitt’s international best seller, Freakonomics. It asks a variety of
strange questions and uses the data analysis methods of economics to come up
with extraordinary answers. However, it does not explain the econometric theory
behind these methods so that, to the reader, Levitt appears to be a magician
pulling rabbits out of a hat. EWOT doesn’t ask such exotic questions. It doesn’t ask “What do school teachers have
in common with sumo wrestlers?” or “Why do drug dealers live with their moms?”
The questions it asks are more conventional, though no less puzzling. And it
makes the economic theory behind the answers crystal clear, so that the reader
can answer similar questions on his own.
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Do you feel there should
be more such books in India?
There is certainly a gaping hole in the literature in this area, but
I am hoping that EWOTS will gather enough readers to fill the gap.
With the demonetization
drive, do you feel we are on the right track despite teething problem?
Unlike most economists, I believe that demonetization, coupled with
the government’s subsequent measures discouraging cash transactions and
incentivizing digitization, are positive steps, despite their potential short
term economic costs. High-value notes have always been the preferred medium of
transactions in criminal activity, terrorism, smuggling of drugs, arms and
other contraband, commissioning of murder and other contractual crimes,
bribery, prostitution and sex-racketeering, under-the-counter deals to evade
tax like those that were universal in the real estate market as well as in
other goods before Nov. 8. Large stocks of unaccounted high-value currency are
a strong incentive for betting (with match-fixing as its corollary), for luxury
expenditure (as in high-end restaurants or on expensive liquor) or on
ostentatious weddings or celebrations – all of which, so many would contend,
add little of value to national income. Obviously, a relatively cashless
economy would lack the wherewithal for such activity, and would therefore be
better-equipped for productive activity. It would also generate more tax
revenue. A major policy error however was the Rs 2000 note. Obviously, it made no sense if the objective
was to reduce the proportion of high-denomination currency and it was too large
to be of any use in common and legitimate day-to-day transactions. In
consequence, it tended to disappear from circulation and so was a most
inappropriate replacement for the old banned notes.
You have been associated
with the School of International Studies at JNU as a professor of economics.
How has the journey been like at such a leading institute?
Over the years, I have learnt much from my students and colleagues. The
process has been facilitated by the fact that the Centre for International
Trade and Development, to which I have been affiliated, has been an island of
academic calm amidst the tumult that seems continuously to engulf JNU.
How do you see India when
it comes to handling its finance & economic and also its education?
As I have indicated in Ch 10 of EWOTS, India, along with China and
most of East and South Asia, is riding the crest of a world-wide wave of rapid
growth in labour-abundant countries. There is very little that any government
can do to mess this up. Of course, the previous Congress government attempted
national hara-kiri through its ‘rights-based approach’ that led to the disastrous
inflation of 2011-13. But at the 2014 elections, the country itself corrected
course by sending the Congress into what looks like permanent exile. It should
however be appreciated that our comparative advantage lies in raw labour, not
human capital. During the first two decades of liberalization, government
emphasized relatively human-capital-intensive activities like services and IT
while surrendering manufacturing to China and other Asian countries. The result
has been jobless growth. The present government’s stress on manufacturing is a
welcome change in approach. Whether it succeeds in its objectives of course
remains to be seen.
As for education, our obsession with quantity has resulted in a
catastrophic collapse of standards. I
have written on this issue several times in the press, so I will not repeat
myself.
What are you planning for
your next book, if any such idea is lingering in your mind?
The Epilogue of EWOTS describes several questions that I would like
to address in my next book. In part, this would also constitute an updating of
An Evolutionary View.
BOOK
TITLE: Economics without Tears: a New Approach to
an Old Discipline
AUTHOR: Ashok Sanjay Guha
PUBLISHER: Penguin Random House India
PAGES: 246
PRICE: Rs. 299
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