TheTheThe Entrepreneurs’Entrepreneurs’Entrepreneurs’

ExpressExpressExpress MONTHLY MAGAZINE OF THE EMONTHLY MAGAZINE OF THE EMONTHLY MAGAZINE OF THE E---CELL, VNITCELL, VNITCELL, VNIT

2012 FEBRUARY

WHO NEEDS VALENTINE’S DAY?WHO NEEDS VALENTINE’S DAY? p4p4

There are three kinds of people. Which one’s you? Find out...There are three kinds of people. Which one’s you? Find out...

4th FEBRUARY: WORLD CANCER DAY 4th FEBRUARY: WORLD CANCER DAY p6p6

Awareness is the key...Awareness is the key...

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Cover Page: The Pink Heart, Love and Cancer. Cover Page: The Pink Heart, Love and Cancer. Cover Page: The Pink Heart, Love and Cancer.

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Who Needs

Valentine’s Day?.……….

The Editorial

4

World Cancer Day.…….

Shehzad Dhuliawala 6

Straight Talk…..………..

Ms. Bhavna Toor,

Director, NSEF

8

The Primaries…...……...

The Economist 10

Queen’s Jubilee.…………

E-Cell Bureau 12

A day full of love can be celebrated in more con-

texts than one. To perform the conventional rit-

uals of those in love, man has tried to compart-

mentalize through a usual understanding of

things and has therefore compartmentalized

emotions too so that one day is dedicated as

‗The Day of Love!‘. Come to think of it, ‗love‘

cannot be restricted to one second, minute,

hour so leave alone a ‗day‘. So, February 14th

cannot – as any other day – be made to con-

dense all the love one has to give to their loved

ones and otherwise.

A little discussion does it that if love is not a

‗diurnal‘ affair (pun intended), ‗Who Needs a

Valentine‘s Day‘? Impressing upon the world a

thoroughly Americanized version of a Nordic

myth, Valentine‘s Day took the world by the

storm – not as it hit the emotional chord in

them – but more because it brought about the

revolution in the Greeting Card segment that no

other day – be it, Friendship Day (1st Sunday of

August), Children‘s Day (14th November) or

Family Day (15th May) – could. Ironically, the

‗Friendship‘ that eventually swells into ‗Love‘

also failed miserably in comparison when it

came to create a global system that hails the

participation of all those in ‗love‘ and demar-

cates the line with the ‗have – not‘s by bringing

forth the essence, flavour, aroma, taste, stamp

design, fashion show, greeting card and every-

thing that is even most remotely connected –

not necessarily, though – with whatever people

use.

This exhaustive exercise of following love and

prophesizing on its issues – both ethical and

unethical – lead to a perfect categorization of

people into three sects; each of whose whims

and fancies seemingly do not fancy the idea of a

Valentine‘s Day. Fortification of ideologies ulti-

mately leads to jeopardizing our own situations

by juxtaposing the very idea of ‗love‘ with the

perennially questionable constraint of ‗time‘,

day in this case.

At the outset are people whose love transcend

the boundaries of chronology and become in-

creasingly poignant as years pass. The entire

year then merges with Valentine‘s Day for then

love knows no bar. When everyday becomes The

Day, Cupid strikes with its sweetly pained ar-

rows incessantly through nanoseconds. As hair

take on the tints then, they realize that all the

time they ever invested into making their love

more profound and well founded has become

the abode of Valentine, the second home of Ve-

nus.

Then there are those who vehemently oppose

the sacred idea of love. Their always exist in the

quaint alleys of cities, both big and small, those

ideologies which partake in the 'trade' of love

--Ankur MathurAnkur Mathur

and blow issue out of proportions. Those are the

unwelcomed and intensely profane facets of cel-

ebrations. In the guise of moral policing then,

they humiliate love in its face and defame it as

they unknowingly bash the very pillars of their

very own civilization! Be it Khajuraho, Konark

or any attempt at sculpting some of the world's

most stunning pieces of temple art, the land of

Kamasutra has been vocal -- and visual - in de-

picting love. And this is something the poor

chaps of some political gurus do not compre-

hend.

Finally, there are those who roam like loafers

loathing at their miserable self not so much for

not having a girlfriend, but more for being Indi-

an and being good at 'jugaad'! We are good at it

nonetheless. So, they are more or less unemo-

tional about the whole 'affair' and do not want

to be branded and tagged all over again - even

though their friends had discussed it just last

night over dinner - for a whole day, every year,

year on year! Which is justified as well, which

'man' would accept the lesser of his manliness?

You won‘t, for sure!

Hmm... So what does that leave us with? People

who practically do not need any Valentine's

Day. Whatever it be, it's impossible to miss the

proclamation of love by that red heart, the stark

glitter of greeting cards, the satisfying pain

(oops!) of..........paining thumbs after profuse

texting. Now compare that with the warmth of a

cup of coffee shared by the chilly morning, a

long, unending hug on a winter's evening, the

impromptu dance in the rains on the street and

sweet whispers on the phone on any given

night! Valentine's Day is every day! Find your

moments, frame your fable...

― The story of cancerThe story of cancerThe story of cancer------isn't the story isn't the story isn't the story

of doctors who struggle and sur-of doctors who struggle and sur-of doctors who struggle and sur-

vive, moving from institution to vive, moving from institution to vive, moving from institution to

another. It is the story of patients another. It is the story of patients another. It is the story of patients

who struggle and survive, moving from who struggle and survive, moving from who struggle and survive, moving from

an embankment of illness to another. Re-an embankment of illness to another. Re-an embankment of illness to another. Re-

silience, inventiveness, and survivorshipsilience, inventiveness, and survivorshipsilience, inventiveness, and survivorship---

---qualities often ascribed to great physi-qualities often ascribed to great physi-qualities often ascribed to great physi-

cianscianscians------are reflected qualities, emanating are reflected qualities, emanating are reflected qualities, emanating

first from those who struggle with illness first from those who struggle with illness first from those who struggle with illness

and only then mirrored by those who and only then mirrored by those who and only then mirrored by those who

treat them. If the history of medicine is treat them. If the history of medicine is treat them. If the history of medicine is

told through the stories of doctors, it is told through the stories of doctors, it is told through the stories of doctors, it is

because their contributions stand in because their contributions stand in because their contributions stand in

place of the more substantive heroism of place of the more substantive heroism of place of the more substantive heroism of

their patients.‖their patients.‖their patients.‖

-Siddhartha Mukherjee,

The Emperor of all Maladies

C ancer: A classification of about over

100 diseases which has affected over

millions of lives. Cancer classifies any

the set of diseases where a group of

cells continue to grow in an abnormal fashion.

These cells are formed when the DNA of normal

body cells is damaged. These cells continue

their growth in leaps and bounds and soon

begin infesting and damaging the other cells.

This infestation soon manifests into a tumor.

―The emperor of all Maladies‖ is what Siddhar-

tha Mukherjee christened his Pulitzer Prize win-

ning book on cancer. Having changed numerous

lives, millions of people have struggled hard

with the disease. The American Cancer of Socie-

ty predicts that half of all men and one-third of

all women in the US are bound to develop a

cancer in their lives.

The world cancer day is marked on the 4th of

February. The goal of the day is to increase

awareness by educating the public about cancer

and its cures. It aims to unite us in the fight

against the

malady and

lobby for a

change. Every

year, various

institutes do

their own bit

in many parts

of the world on

getting the so-

ciety conscious

on cancer. Out

444th th th February: February: February:

WORLD CANCER DAYWORLD CANCER DAYWORLD CANCER DAY

---Shehzad DhuliawalaShehzad DhuliawalaShehzad Dhuliawala

of the various types, many of them are effective-

ly curable at early stages and this is the main

reason why cancer awareness needs to be given

the precedence.

So amidst all the awareness events, as an indi-

vidual, how can you play your part in the war?

The World cancer day organization believes

every single person

can help spread the

message. They

identify various lev-

els of your engage-

ment ranging from

the use of social

media to spread

awareness to foster-

ing you ministry of

health to support

cancer controls tar-

gets at the next

World Health As-

sembly to working with the UICC (Union for

International Cancer Control).

The UICC believes that from the current statis-

tics of 12.7 million cancer diagnosis and 7.6 mil-

lion cancer deaths per year, the figure is bound

to increase to 26 million diagnosis and 17 mil-

lion deaths per year if the world remains oblivi-

ous to the disease. Ignorance is most dangerous

as about 30-40% of can-

cers are curable if detect-

ed at an early stage. And

as the saying has been:

Prevention is always bet-

ter than cure. The world

cancer day remains a day

of crucial importance not

only to those affected by

the disease but to every

individual, as the UICC

has impressed enough

that if there remains any

lack of awareness, the

consequences could be dire.

Dr. Saunthari at one of the several programs organized on World

Cancer Day.

Ms. Toor, how did you decide to change from Ms. Toor, how did you decide to change from

being a beauty pageant winner to a social en-being a beauty pageant winner to a social en-

trepreneurship worker?trepreneurship worker?

There really wasn‘t much of a transition in-There really wasn‘t much of a transition in-

volved as at the core of me, I have always lived volved as at the core of me, I have always lived

by the ideal of public service, and that has been by the ideal of public service, and that has been

the biggest driving force behind most of the ma-the biggest driving force behind most of the ma-

jor decisions in my life. jor decisions in my life.

One sees many beauty pageant winners prom-One sees many beauty pageant winners prom-

ise a great deal of social change in their inter-ise a great deal of social change in their inter-

views but very little materializes, what do you views but very little materializes, what do you

think are the reasons?think are the reasons?

I cannot really speak for others. I suppose it I cannot really speak for others. I suppose it

boils down to your motivation for entering a boils down to your motivation for entering a

pageant in the first place. For several, the objec-pageant in the first place. For several, the objec-

tive is to build a career in entertainment, and tive is to build a career in entertainment, and

there is absolutely nothing wrong with that. In there is absolutely nothing wrong with that. In

fact, it‘s wonderful to be able to entertain oth-fact, it‘s wonderful to be able to entertain oth-

ers. For me, while entertainment is certainly ers. For me, while entertainment is certainly

something I enjoy dabbling in on the side as a something I enjoy dabbling in on the side as a

hobby, my motivation for entering the pageant hobby, my motivation for entering the pageant

was to gain some measure of visibility and have was to gain some measure of visibility and have

a platform upon which I could support a larger a platform upon which I could support a larger

vision for my life, which is to make a meaning-vision for my life, which is to make a meaning-

ful impact in the world. ful impact in the world.

Between the USA and India, where do you Between the USA and India, where do you

think Social Entrepreneurship works better think Social Entrepreneurship works better

and why?and why?

I think both countries are playing their part in I think both countries are playing their part in

supporting social entrepreneurship. The U.S. supporting social entrepreneurship. The U.S.

has become a major thought leader in the field has become a major thought leader in the field

of social entrepreneurship, and has played a of social entrepreneurship, and has played a

huge role in making it attractive enough for huge role in making it attractive enough for

scores of young people to want to devote their scores of young people to want to devote their

lives to it. In fact, if you look around India, lives to it. In fact, if you look around India,

you‘ll find several social entrepreneurs from the you‘ll find several social entrepreneurs from the

U.S., both of Indian and nonU.S., both of Indian and non--Indian origin. I Indian origin. I

was fortunate to be able to do my MBA in social was fortunate to be able to do my MBA in social

enterprise in the U.S. enterprise in the U.S.

In India, the idea of social enterprise is slowly In India, the idea of social enterprise is slowly

gaining acceptability among the youth, though gaining acceptability among the youth, though

much work still remains to be done in making much work still remains to be done in making

this a desirable and viable career choice for this a desirable and viable career choice for

young men and women. The opportunities for young men and women. The opportunities for

young people to get involved in this sector are young people to get involved in this sector are

vast, and there certainly is a plentiful supply of vast, and there certainly is a plentiful supply of

talent here as well. At NSEF, we are committed talent here as well. At NSEF, we are committed

to matching the two. to matching the two.

What are the differences between CSR and So-What are the differences between CSR and So-

cial Entrepreneurship? Are big companies do-cial Entrepreneurship? Are big companies do-

ing enough for it?ing enough for it?

While the objective of both CSR and social en-While the objective of both CSR and social en-

trepreneurship is social impact, the difference is trepreneurship is social impact, the difference is

CSR is often peripheral to the core business of a CSR is often peripheral to the core business of a

company through which it makes money, company through which it makes money,

whereas for a social enterprise, both the finan-whereas for a social enterprise, both the finan-

cial and social mission of the company are cial and social mission of the company are

aligned. In other words, with CSR, a company aligned. In other words, with CSR, a company

uses part of its residual income from its core in-uses part of its residual income from its core in-

comecome--generating activities to contribute to so-generating activities to contribute to so-

cial and/or charitable causes. Whereas for a so-cial and/or charitable causes. Whereas for a so-

cial enterprise, let‘s say one that sells clean wa-cial enterprise, let‘s say one that sells clean wa-

ter to lowter to low--income consumers, it strives to gen-income consumers, it strives to gen-

erate revenue and create social impact through erate revenue and create social impact through

its core business. More and more large compa-its core business. More and more large compa-

nies are now realizing that they have an obliga-nies are now realizing that they have an obliga-

tion to contribute to the communities in which tion to contribute to the communities in which

they operate, and are finding ways to integrate they operate, and are finding ways to integrate

CSR with their main business through double CSR with their main business through double

bottombottom--line initiatives, such as Unilever had line initiatives, such as Unilever had

done with Shakti (which was to train women done with Shakti (which was to train women

entrepreneurs to sell their products in rural entrepreneurs to sell their products in rural

markets). There is a promising new law cur-markets). There is a promising new law cur-

rently under consideration in the Parliament rently under consideration in the Parliament

called the Companies Law, which if it passes, called the Companies Law, which if it passes,

would mandate all companies with an annual would mandate all companies with an annual

turnover of turnover of @@10bn or more to set aside 2% of 10bn or more to set aside 2% of

their profits for CSR activities. That could be a their profits for CSR activities. That could be a

step in the right direction. step in the right direction.

What are the major sectors in which Social En-What are the major sectors in which Social En-

trepreneurship has future? (Viz. agriculture, trepreneurship has future? (Viz. agriculture,

micromicro--lending, etc.)lending, etc.)

There are several sectors in India which present There are several sectors in India which present

enormous opportunities for social entrepre-enormous opportunities for social entrepre-

neurs, the biggest being affordable housing, lowneurs, the biggest being affordable housing, low

--cost healthcost health--care and education, improving live-care and education, improving live-

lihoods for small farmers and artisans, water lihoods for small farmers and artisans, water

and sanitation, and clean energy. and sanitation, and clean energy.

How would you describe a typical revenue How would you describe a typical revenue

model in Social Entrepreneurship segment?model in Social Entrepreneurship segment?

A typical revenue model would be a retail model A typical revenue model would be a retail model

whereby you are selling a key product or service whereby you are selling a key product or service

to lowto low--income consumers, be it solar lanterns, income consumers, be it solar lanterns,

cook stoves or clean water. The key, of course, is cook stoves or clean water. The key, of course, is

to price the product in a way that is affordable to price the product in a way that is affordable

to your target customer as well as one that to your target customer as well as one that

makes an attractive enough margin for the busi-makes an attractive enough margin for the busi-

ness to sustain itself. Another revenue model ness to sustain itself. Another revenue model

would be to engage the lowwould be to engage the low--income population income population

as producers in your supply chain, for products as producers in your supply chain, for products

or services that are marketed to more affluent or services that are marketed to more affluent

customers. Crosscustomers. Cross--subsidization, where you sell subsidization, where you sell

to the rich to give to the poor, or use profits gen-to the rich to give to the poor, or use profits gen-

erated from selling to highererated from selling to higher--income consumers income consumers

to subsidize the cost for lowto subsidize the cost for low--income consumers, income consumers,

would be yet another.would be yet another.

Are their exit strategies in this model too?Are their exit strategies in this model too?

There certainly are possible exit strategies as at There certainly are possible exit strategies as at

end of the day we are talking about businesses, end of the day we are talking about businesses,

but to be frank, we have not yet seen as many but to be frank, we have not yet seen as many

successful exits in this space as one would typi-successful exits in this space as one would typi-

cally see with commercial ventures, such as an cally see with commercial ventures, such as an

acquisition or an IPO, although Compartamos acquisition or an IPO, although Compartamos

and SKS, both microand SKS, both micro--finance organizations, did finance organizations, did

have multihave multi--million dollar IPOs. I think it‘s be-million dollar IPOs. I think it‘s be-

cause social entrepreneurship is still a relatively cause social entrepreneurship is still a relatively

new model for creating social impact, and as the new model for creating social impact, and as the

industry matures, one hopes we will see a great-industry matures, one hopes we will see a great-

er number of exits, as that would signify valida-er number of exits, as that would signify valida-

tion of the very concept of a social enterprise, as tion of the very concept of a social enterprise, as

well as encourage more mainstream capital to well as encourage more mainstream capital to

flow into this space, not to mention attract more flow into this space, not to mention attract more

entrepreneurs as well.entrepreneurs as well.

Is their particular significance of Social Entre-Is their particular significance of Social Entre-

preneurship among women centered SHGs?preneurship among women centered SHGs?

SHGs are doing great work in empowering SHGs are doing great work in empowering

women, and there is no better way to empower women, and there is no better way to empower

women than economically by giving them the women than economically by giving them the

tools and capital (i.e. small loans) needed to be-tools and capital (i.e. small loans) needed to be-

come entrepreneurs. Several studies have come entrepreneurs. Several studies have

shown women entrepreneurs are a great invest-shown women entrepreneurs are a great invest-

ment because they are much more likely to re-ment because they are much more likely to re-

pay their loans, manage their cash flows, and pay their loans, manage their cash flows, and

use the income they generate to help their fami-use the income they generate to help their fami-

lies and get out of poverty.lies and get out of poverty.

Before his big speech last week, liberals advised Before his big speech last week, liberals advised Barack Obama to stay away from arguing about Barack Obama to stay away from arguing about the merits of the American Recovery and Rein-the merits of the American Recovery and Rein-vestment Act (i.e., the stimulus bill of 2009). vestment Act (i.e., the stimulus bill of 2009). While independent economists generally agree While independent economists generally agree that the stimulus saved or created somewhere that the stimulus saved or created somewhere in the neighbourhood of 2m jobs, it remains un-in the neighbourhood of 2m jobs, it remains un-popular with the general public; the sense was popular with the general public; the sense was that there was no point engaging on this issue, that there was no point engaging on this issue, regardless of the merits. Now ProPublica's Mike regardless of the merits. Now ProPublica's Mike Grabell is out with a bookGrabell is out with a book--length investigation length investigation of the stimulus, titled "Money Well Spent?"of the stimulus, titled "Money Well Spent?"

In an interview last week on NPR's Fresh Air, In an interview last week on NPR's Fresh Air, Mr. Grabell said the stimulus effort had its good Mr. Grabell said the stimulus effort had its good points and its bad points. On the one hand, points and its bad points. On the one hand, money funneled to states to forestall budget money funneled to states to forestall budget cuts saved huge numbers of jobs for teachers, cuts saved huge numbers of jobs for teachers, firefighters and other employees, and delayed firefighters and other employees, and delayed cutbacks in infrastructure spending. He sub-cutbacks in infrastructure spending. He sub-scribes to the general wisdom that unemploy-scribes to the general wisdom that unemploy-ment probably would have hit 12% in 2009 ra-ment probably would have hit 12% in 2009 ra-ther than 10% without it. On the other hand, the ther than 10% without it. On the other hand, the administration had to drop an idea that almost administration had to drop an idea that almost certainly would have made sensecertainly would have made sense——building a building a national electric smart gridnational electric smart grid——because the juris-because the juris-dictional and reddictional and red--tape problems made it impos-tape problems made it impos-sible to implement fast enough. Instead the ad-sible to implement fast enough. Instead the ad-ministration decided to invest in clean energy; ministration decided to invest in clean energy; butbut those investments placed their bets too those investments placed their bets too heavily on individual companies, some of which heavily on individual companies, some of which then went bankrupt. In an excerpt from the then went bankrupt. In an excerpt from the book on the electric car and battery industry book on the electric car and battery industry jumpjump--started by stimulus funding, Mr. Grabell started by stimulus funding, Mr. Grabell says the jury is still out: without a rapid pickup says the jury is still out: without a rapid pickup in demand for Leafs and Volts (which in turn in demand for Leafs and Volts (which in turn depends on a big increase in electric charging depends on a big increase in electric charging stations), America's electricstations), America's electric--car industry will car industry will probably fail to hit critical mass, and it'll wind probably fail to hit critical mass, and it'll wind up relocating to South Korea or China like every up relocating to South Korea or China like every

other manufacturing industry has.other manufacturing industry has.

So, here's the thing. The debate we had about So, here's the thing. The debate we had about the stimulus probably should have been a lot the stimulus probably should have been a lot like the book Mr. Grabell has written: a detailed like the book Mr. Grabell has written: a detailed investigation of what does and doesn't work in investigation of what does and doesn't work in stimulus spending and whether the government stimulus spending and whether the government really can jumpreally can jump--start a promising industry start a promising industry through investments, tax breaks and industrial through investments, tax breaks and industrial policy. But that wasn't the debate we had. In-policy. But that wasn't the debate we had. In-stead we had a debate about the very concept of stead we had a debate about the very concept of whether the government ought to spend money whether the government ought to spend money countercounter--cyclically during a recession in order to cyclically during a recession in order to keep the economy from collapsing, or whether it keep the economy from collapsing, or whether it should tighten its belt along with consumers should tighten its belt along with consumers and businesses in order to generate confidence and businesses in order to generate confidence in the financial markets and allow markets to in the financial markets and allow markets to clear. We had a debate about whether govern-clear. We had a debate about whether govern-ments should respond to recessions with deficit ments should respond to recessions with deficit spending or austerity.spending or austerity.

That was the debate we had. And what's inter-That was the debate we had. And what's inter-esting about this particular moment is that esting about this particular moment is that while Mr. Grabell is writing about what did and while Mr. Grabell is writing about what did and didn't work in the stimulus, and Mr. Obama is didn't work in the stimulus, and Mr. Obama is staying away from the topic for political rea-staying away from the topic for political rea-sons, out there on the barricades what's hap-sons, out there on the barricades what's hap-pening is that the entire argument that govern-pening is that the entire argument that govern-ments should engage in austerity appears to be ments should engage in austerity appears to be collapsing.collapsing.

Item 1: Over the past month, Paul Krugman, Item 1: Over the past month, Paul Krugman, Brad DeLong, andBrad DeLong, and Simon WrenSimon Wren--LewisLewis engaged engaged in an interminable duel with Tyler Cowen, Scott in an interminable duel with Tyler Cowen, Scott Sumner, sortSumner, sort--of Karl Smithof Karl Smith (occupying as usual (occupying as usual an esoteric position not easily placed on the ide-an esoteric position not easily placed on the ide-ological grid), and probably some other people ological grid), and probably some other people I'm forgettingI'm forgetting——over an old argument by John over an old argument by John Cochrane claiming that the multiplier effect of Cochrane claiming that the multiplier effect of government stimulus spending probably ought government stimulus spending probably ought

---The Economist, The Economist, The Economist,

to be zero. The argument by Mr. Cochrane was a to be zero. The argument by Mr. Cochrane was a critical document in the stimulus debate, be-critical document in the stimulus debate, be-cause it was an articulation in morecause it was an articulation in more--oror--less pub-less pub-lic discourse by a welllic discourse by a well--respected economist of a respected economist of a mechanism through which increased govern-mechanism through which increased govern-ment spending could fail to raise GDP or in-ment spending could fail to raise GDP or in-crease employment at all. Essentially every crease employment at all. Essentially every working practical economist and forecaster be-working practical economist and forecaster be-lieved that the stimulus, like any other govern-lieved that the stimulus, like any other govern-ment spending, would raise aggregate demand, ment spending, would raise aggregate demand, GDP, and employment. Republican politicians GDP, and employment. Republican politicians were arguing that it would not, and Mr. were arguing that it would not, and Mr. Cochrane backed them up.Cochrane backed them up.

Two weeks ago, Mr. Cochrane responded to the Two weeks ago, Mr. Cochrane responded to the argument in a fashion that suggested that either argument in a fashion that suggested that either he has changed his mind, or he never thought he has changed his mind, or he never thought what the expansionarywhat the expansionary--austerity people claimed austerity people claimed he did in the first place.he did in the first place.

Let's be clear what the "fiscal stimu-Let's be clear what the "fiscal stimu-lus" argument is and is not about.lus" argument is and is not about.

It is not about the proposition that It is not about the proposition that governments should run deficits in governments should run deficits in recessions. They should, for simple recessions. They should, for simple taxtax -- smoothing, consumptionsmoothing, consumption --smoothing, and socialsmoothing, and social--insurance insurance reasons, just as governments should reasons, just as governments should finance wars with debt. That doesn't finance wars with debt. That doesn't justify all deficitsjustify all deficits——one can still ar-one can still ar-gue that our government used the gue that our government used the recession to radically increase per-recession to radically increase per-manent spending. But disliking manent spending. But disliking "stimulus" is not the same thing as "stimulus" is not the same thing as calling for an annually balanced calling for an annually balanced budget.budget.

Nor is it about debt financing of Nor is it about debt financing of "infrastructure" or other genuine in-"infrastructure" or other genuine in-vestments. If the project is valuable, vestments. If the project is valuable, do it. And recessions, with low inter-do it. And recessions, with low inter-est rates and available workers, are est rates and available workers, are good times to do it... Stimulus [is] good times to do it... Stimulus [is] still an economically interesting still an economically interesting proposition, and there is a great deal proposition, and there is a great deal of uncertainty about whether, when, of uncertainty about whether, when, and how well it might work.and how well it might work.

Okay. There's a lot of nuance here. But as Noah Okay. There's a lot of nuance here. But as Noah Smith pointed out in response, if the basic gist Smith pointed out in response, if the basic gist is that governments should run deficits in reces-is that governments should run deficits in reces-sions to smooth consumption, deliver social in-sions to smooth consumption, deliver social in-surance, and take advantage of low interest surance, and take advantage of low interest rates to invest in infrastructure...then the poli-rates to invest in infrastructure...then the poli-cies Mr. Cochrane is recommending here are to cies Mr. Cochrane is recommending here are to the left of anything Congress is contemplating the left of anything Congress is contemplating passing right now.passing right now.

Item 2: Niall Ferguson has spent the last three Item 2: Niall Ferguson has spent the last three years arguing, contra Paul Krugman, that Amer-years arguing, contra Paul Krugman, that Amer-

iiccaa iiss ccoouurrttiinngg ddiissaasstteerr bbyy aalllloowwiinngg ddeeffiicciittss ttoo balloon its national debt to such high levels, and balloon its national debt to such high levels, and will have to reign in spending or face a crippling will have to reign in spending or face a crippling rise in interest rates. Last week, in an interview rise in interest rates. Last week, in an interview with Henry Blodget, he admitted defeat.with Henry Blodget, he admitted defeat.

BLODGET: That is a shockingly op-BLODGET: That is a shockingly op-timistic view of the United States timistic view of the United States from you. Are you conceding to Paul from you. Are you conceding to Paul Krugman that over the nearKrugman that over the near--term we term we shouldn't worry so much?shouldn't worry so much?

FERGUSON: I think the issue here FERGUSON: I think the issue here got a little confused, because got a little confused, because Krugman wanted to portray me as a Krugman wanted to portray me as a proponent of instant austerity, proponent of instant austerity, which I never was. My argument was which I never was. My argument was that over ten years you have to have that over ten years you have to have some credible plan to get back to fis-some credible plan to get back to fis-cal balance because at some point cal balance because at some point you lose your credibility because on you lose your credibility because on the present path, Congressional the present path, Congressional Budget Office figures make it clear, Budget Office figures make it clear, with every year the share of Federal with every year the share of Federal tax revenues going to interest pay-tax revenues going to interest pay-ments rises, there is a point after ments rises, there is a point after which it's no longer credible. But I which it's no longer credible. But I didn't think that point was going to didn't think that point was going to be this year or next year. I think the be this year or next year. I think the trend of nominal rates in the crisis trend of nominal rates in the crisis has been the trend that he forecast-has been the trend that he forecast-ed. And you know, I have to concede ed. And you know, I have to concede that.that.

I could go on. This comes on top of criticisms of I could go on. This comes on top of criticisms of austerity policies from the IMF, intense pres-austerity policies from the IMF, intense pres-sure at Davos on the German government to sure at Davos on the German government to countenance increased spending by northern countenance increased spending by northern European countries and looser monetary policy European countries and looser monetary policy at the ECB, and so forth. To some extent what at the ECB, and so forth. To some extent what we're seeing here is the backwash from the eurowe're seeing here is the backwash from the euro--zone crisis hitting the American economic de-zone crisis hitting the American economic de-bate. If you think that the Germanbate. If you think that the German--led Europe-led Europe-an solution to the euroan solution to the euro--zone crisis is deeply con-zone crisis is deeply con-fused, and a lot of Americans do, then you have fused, and a lot of Americans do, then you have to be troubled by the ways in which it resembles to be troubled by the ways in which it resembles what austerity proponents would have liked what austerity proponents would have liked America's response to the financial crisis to America's response to the financial crisis to have been. Americans are starting to recognize have been. Americans are starting to recognize that our recovery is further along than other ad-that our recovery is further along than other ad-vanced countries' in part because the way we vanced countries' in part because the way we handled the financial crisis wasn't really so aw-handled the financial crisis wasn't really so aw-ful. And that includes the stimulus.ful. And that includes the stimulus.

The presidential election this year is in large The presidential election this year is in large

measure a referendum on Barack Obama's eco-measure a referendum on Barack Obama's eco-

nomic policies. The 2012 elections are taking nomic policies. The 2012 elections are taking

place at a moment when people have lost faith place at a moment when people have lost faith

in expansionary austerity.in expansionary austerity.

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As the Queen, As the Queen, HRH Elizabeth II HRH Elizabeth II com-com-

pletes 60 years as the sovereign of the pletes 60 years as the sovereign of the

United Kingdom and the Common-United Kingdom and the Common-

wealth, we congratulate her for her wealth, we congratulate her for her

contribution to the wider cause of hu-contribution to the wider cause of hu-

manity and increased Anglomanity and increased Anglo -- Indian Indian

trade relations.trade relations.

With a two way trade of over $12.5bn With a two way trade of over $12.5bn

her government has taken a lot of steps her government has taken a lot of steps

to acknowledge India’s presence at the to acknowledge India’s presence at the

world forum too. The setting up of Joint world forum too. The setting up of Joint

Economic and Trade Committee Economic and Trade Committee

(JETCO) in 2005 bolstered the trade (JETCO) in 2005 bolstered the trade

ties. ties.

We wish her the very best of luck and a We wish her the very best of luck and a

long life ahead.long life ahead.