Tag: fundamental problem

Want a nightlife? Build temples!

First of all, I’m serious. Second of all, this is not the first time I’m writing on Bangalore’s nightlife (or the lack of it). The last time I wrote about this topic, I had argued that most people in Bangalore are fundamentally illiberal and opposed to extended night life, and official response was just an embodiment of this sentiment. This post is more positive.

I think I have hit upon a solution to create a night life in Bangalore. This is based on my experiences at Amritsar and Ajmer. Both of them were extremely spiritual experiences (no, not that spirit. Alcohol is banned in the vicinity of the main shrines in both  these places). Both places offered fantastic food (again, vegetarian food only in the vicinity of the Golden Temple – but bloody brilliant; and brilliant mutton biryani near the Dargah of HKGN in Ajmer). And most importantly, both towns had a vibrant night life.

I’m not sure if I’ve touched upon this topic earlier, but the fundamental problem with Bangalore not having a night life is that it has never had one. Half of it was a traditional Indian city, and the other half was a rather sleepy cantonment town – which had its share of bars and discotheques, but most of which closed at eight in the evening (even twenty years ago, most of MG Road and Brigade Road would close at eight in the evening). Consequently, the city never did have a lifestyle. Even if you argue that the cantonment side had one, that the “city” side became more dominant after independence meant that whatever night life was there never really developed.

Fundamentally, a town gets a night life if people have some business being outdoors at night. Bombay had its textile mills that ran round the clock. New York was a busy trading port. Pick any city with a reasonable night life and you will find that sometime in its history there would have been a solid reason for people to remain outdoors late in the night. And yes, I’m talking about a solid business reason, not just partying.

The simple fact of the matter is that Bangalore has never had one (for reasons explained above). The situation is slowly changing of course, with many of Bangalore’s BPO and IT shops open through the night to service customers in the new world. Unfortunately, most such companies have insulated themselves from the rest of the city and built their own facilities for food, transportation, etc. Thanks to this, workers in such establishment (no doubt there are several) do not really contribute to the general nocturnal economy of the city. And so the administration can get away with downing shutters at bars and restaurants at 11 pm.

So what needs to be done? As the title of the post suggests, we need to build temples. We need “udbhava murtis” (idols that have sprung up from the ground) to magically spring up in several places in the city (not in the middle of roads of course). Then we need our religious leaders to declare that such murtis are the greatest to have ever existed, and to create a discourse that visiting one such murti will cure one of all past sins (or any such thing that will bring in crowds in large numbers). This needs to be a concerted effort, such that the demand for “darshan” at these murtis become humongous. The demand to see the murtis will be so humongous that the temples that are likely to spring up around them will need to be open round the clock!

And so we will have people visiting these temples late in the night, in the wee hours of the morning. Lots of people at the temple means an  enterprising chaat wallah will find it profitable to set up shop outside these temples. They will be followed by a chai wallah, and then dosa carts will begin to appear. Police will want to read the rule book to these businessmen, but their removal will lead to incurring the wrath of thousands of hungry pilgrims. The police will quietly extract their commissions and let the establishments stay. Then, people will need to get to the temples at wee hours of the morning, so we will have buses running through the night. More people moving around will mean greater “liquidity” in the auto rickshaw market and they will become more affordable at these times.

It will take a while (no good things come easily). But soon the bustling economies around these 24-hour temples will mean that the city will be alive through the night. Laws will have to change, and soon shops will be open through the night. As will be restaurants, and in the course of time bars (no promise on that one; Till very recently even in London bars had to shut at 11pm). And the city will have a night life!

Of course, the road to this liberal utopia is through a religious process. But then, don’t ends sometimes justify the means? And who is to say that an all-powerful deity does not add value to society at large? It will take concerted effort though (these idols need to magically appear in strategic locations, and we need the support of religious leaders to bless such idols – this is easier said than done), but it can be done.

PS: After writing this I realize that I’d written something similar on the Broad Mind a few months ago. Apologies for re-hashing the same idea. But don’t tell me this is not more positive.

FDI in retail

I’m trying to figure why that is turning out to be a big deal. Given that we have over 5 years of history of “organized retail” in India, and that it hasn’t performed particularly well on a lot of factors, I don’t know how permitting FDI in multi-brand retail is going to make a difference.

In my personal experience, the performance of “modern retail” over the last 5 years has been underwhelming at best. I can’t recall a single time when I’ve gone to one of these chain stores (Big Bazaar/ Reliance Fresh / More) and come back without getting annoyed with the checkout staff. While the variety available at these stores is massive, which is why I go there at times, the stores are all staffed with a bunch of imbeciles. Yes, all of them. They have made an attempt to overcome the unskilled staff by means of “software systems” and that has only added to the problem, rather than helping solve it.

On countless occasions, staff at modern retail outlets have refused to sell me something that I wanted to buy because “the item code wasn’t found in the system”. The other day the customer in front of me wanted to cancel an item midway through checkout, and the checkout staff had to call the store manager to reverse the transaction. I don’t know why the systems have been designed so badly. The fundamental problem with most of these “modern retail” outlets is that the staff there have no real incentive to actually sell you stuff, and the impression one gets is that the only thing staff strive to do is to avoid mistakes. Perhaps their incentives are structured thus. I know of a case from some 4-5 years back, when a family-owned opened across the road from a More outlet and in the course of a year, the latter had shut down.

Given this lacklustre performance of modern retail, I don’t know how much of a difference permitting FDI in the sector will achieve. Yes, it is argued that if Walmart invests directly the “know-how” it has accumulated over the years will be introduced to India. However, there is no reason to believe that this “know-how” has not already been implemented. Major players in organized retail such as Reliance and the Aditya Birla Group (More) have demonstrated in other sectors of their willingness to acquire know-how from across the globe, and implement it better than their global counterparts. Then, most major management consultants in India have established retail practices, which is another route for “knowledge import”. It is also not an issue of capital – Indian investors in various sectors have time and again shown that they are willing to invest in companies with strong business practices.

The problem with modern retail lies not with either know-how or investment. The problem is one of implementation, and I don’t see how bringing in Walmart (who have little idea of Indian markets) can make a difference there. FDI in retail is not going to solve this problem.

The real problem lies in bottlenecks higher up the food supply chain. Various states are yet to repeal the archaic APMC Act which gives certain people monopoly over food trade in certain areas. There are various restrictions on movement of goods across states (though this should be lesser of a problem once the GST (Goods and Service Tax) Regime comes into play). Time and again, the government acts arbitrarily in changing the rules concerning movement, import, export and “support price” of commodities, and this creates uncertainty in the market and scares away investors.

It is reforms higher up the supply chain that are crucial in order to make the food supply chain more efficient and reduce wastage. The government would do well to put the topic of retail FDI on the backburner (especially since it’s controversial) and instead focus on enabling the rest of the supply chain to become more efficient.

Why I don’t blog about her

The sweetheart has one fundamental problem with my blogging. That I have hardly written about her on my blog. Being the girlfriend of a celebrity blogger she deserves better, she argues. And she pulls up the reams of posts that have been written here about my old crushes and accuses me of not loving her as much, given I don’t write about her.

While I agree that I haven’t written much about her, I believe there are several important reasons behind that. I don’t know if she’ll buy into this reasoning but I believe these points need to be made.

Firstly it must be recognised that angst is a major fuel for writing. When what you thought was a great “deal” (in terms of relationship) falls through, it creates immense angst which needs to be channelled somewhere. And writing about the subject that causes the angst is one of the ways of channelling the angst. There have been occasions where I’ve managed to channelize the angst in other productive ways but in the last few years writing about the source has been a good source of getting rid of it.

Then, there is the time and effort factor ( I think this is the reason she is least likely to buy). Running a successful relationship takes up a large amount of your time and effort, and that’s not necessarily bad. I’m not talking only about tackling fights, misunderstandings, etc. here. When you have found someone to share your life with, there is suddenly so much more to do. Your life changes in ways that you had never imagined. Your life becomes so awesome that trivial pursuits like writing get the short shrift. You might have noticed that my general quantity of output has diminished in the last year.

Lastly but most importantly, there is the issue of not wanting to rock the boat. When a deal falls through, you have nothing to lose from it. You don’t care what the counterparty of the fallen deal thinks about you anymore. And that lets you unleash. When things are good, though, there is a relationship to protect. You just do not want to rock the boat. Every time you write about her, you want to make sure you’re not writing something that might offend her. Or something that will take a great deal of effort to defend.

Every time you sit down to write about her, every line you write, you end up thinking four times what she might think of it. And that disturbs the flow in which you are usually used to writing your posts. And once that flow is disturbed, you don’t want to write anymore. You would rather write about something which you can write “in flow” than thinking four times about every line you write.

On a similar vein, you might have noticed that I hardly blog about my work nowadays. The number of work-related posts since I joined this job would be comfortably in single figures. And that doesn’t compare favourably at all given the volume of work-related posts in my earlier jobs. I love my current job and have settled down nicely into it, and intend to put gaaji here. There is little angst that this job creates. And because I like this, I spend that much more effort doing my job than writing about it.

Tenure Matching

One of the fundamental concepts of finance is to match the tenure of assets and liabilities. That the tenure of source of funds (equity, debt, etc.) need to match the tenure of what they are used for. So, if you need money to tide over till your next payday, you need to take an extremely short-term loan. If you need to borrrow to fund a house – an application that has a long tenure – you need to take a longer-term loan. And so on.

In fact, a common refrain about banking crises is that they happen mainly due to the tenure mismatch – banks borrow by means of short-term deposits, and then invest these in long-term loans. Most theories regarding liquidity crises cite this as a common problem.

Now, my contention is that this banking/finance rule is just a special case of a much larger rule in life. Remember that funding, or raising money, can be looked at as a “problem”. By classifying it as a problem, I’m not necessarily saying it’s a very tough problem. All I’m saying is that it’s a problem. And when you do raise money, it is a solution to the problem. Thus, the generalized form of the rule

The tenure of the solution needs to match the tenure of the problem.

So before you look for a solution for any problem in life, you need to first figure out about the tenure of the problem. And then generate a list of possible solutions which have similar tenures, and then pick the best among them. And based on my limited anecdotal experience, most people don’t really appreciate this concept when they suggest, and sometimes even implement, certain solutions.

So on Monday I called up a friend and told her that I was going through a strong bout of NED and we should meet up. She started philosophising and said that this is a fundamental problem and that I should think of a fundamental solution. That I should get a new hobby, or learn a new instrument, or some such long-term thing. Of course, I know myself better than she does, and so I knew that my problem was short-term, and so all I needed was a nice evening out. A short term solution to a short term problem.

On the other hand, during my previous job, I used to go through prolonged periods of NED. A little analysis revealed that the fundamental reason for this NED was my job, and that until I got a new one, I wouldn’t be happy. It was a long-term problem that deserved a long-term solution – of finding another job. However, most of the advice I got for my NED was of the nature of “go get drunk, you will be fine”.

My mother also doesn’t seem to appreciate this tenure concept. Nowadays I’m afraid to crib to her about anything, because if I crib, she assumes it’s a long-term problem and suggests that I should get married and that she’ll intensify her efforts in the arranged-marriage market.

Yes – people not appreciating this tenure concept is a long-term problem. The solution to this should also, thus, be long-term. They need to be taught such a lesson regarding this, that they won’t forget this concept for the rest of their lives.