Monday, August 22, 2005

China, India And The World


I mean I was born in India. This pertains to me. People who live on a dollar a day are people in my personal circle. I know quite a few of them: some of them have nicknames for me, from my homevillage.

BusinessWeek has come up with a fabulous story cluster around the big topics of the economic resurgence of the two Asian giants. But perspective has to be maintained. Look at the per capita income. The PPP (Purchasing Power Parity) for 2004 for China is $5,600. For India it is $3,100. Fro Nepal it is $1,500. I had to throw Nepal in because, well, I grew up in Nepal.

The same figure for the US is $40,100.

My point being it will be a while before India and China jump over to the $50,000 range.

But the GDP figures, adjusted for Purchasing Power Parity, are US $11.75 trillion, China $7.262 trillion and India $3.319 trillion. At that level the differences are less stark.

The 19th century was Britain's, the 20th was America's, this one is Asia's. Cisco's Scheinman: "We came to India for the costs, we stayed for the quality, and we're now investing for the innovation."

Africa could compete. Both India and China are living testimonies to economic unions and free trade. A China that were 20 different countries would be less efficient. Africa could compete by becoming a single economic unit, a single market. Snuff out civil wars, introduces democracies, and work towards becoming a single market. The recipe is no rocket science.



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Saturday, August 13, 2005

In Defense Of Google Digitizing Books

It would be flat out wrong to get in the way of technological breakthroughs that bring the cost of books down. And make their reaches wider. It is just that a way has to be found to ensure the authors do make money in the process.

I think Google should consider becoming a publisher itself. So you publish your book on Google property. Revenue is generated through ads. You and Google split the money made. For the reader it is free books. For the author there is money.



The library concept hit the snag. Because the money part was not handled well. On the other hand, if it is okay to read a book at some library for free, why is it not okay to read that same book in digital format?

The publishing industry feels the threat, and rightly so. Because of the web, the barrier to entry to getting published is literally zero. As to whether or not you get read is another thing. As to whether or not you make money is another thing.

I think this free for consumer revenue through ads model would work also for other media, audio and video. Prices come down to zero, but volume goes up, way up. You could have consumers all over the planet.

This model preserves the copyright thing.


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