Mint | Social capital can help close a wide MSME gap

In his inaugural address to the first Industrial Conference in Pune in 1890, Mahadev Govind Ranade noted that “the industry of the country is parched up for want of Capital" because after land revenue, a considerable portion of gross savings was used to hoard bullion. The lack of institutional arrangements for industrial finance meant that capital was locked up in unproductive assets and not available to India’s entrepreneurs. A century later, the German economic historian Dietmar Rothermund came to a similar conclusion. Lacking financial institutions, Indian surpluses in the second half of the 19th century went into gold and land. Meiji Japan, in contrast, was able to “gather small savings and to channel them into the mainstream of the national economy," enabling the country’s industrialization. Read the full article here.

Ownership of Digital Devices is Crucial for a Thriving Free Society

A few weeks ago, Bloomberg’s Mark Gurman reported that “Apple Inc. is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee..”. Wall Street analysts and management consulting firms have been championing such a business model for some time, but my intuitive reaction upon reading the news was one of horror. And after further reflection and debate with my colleagues, I have no reason to change my mind: Hardware subscriptions are a bad idea for society. This business model must be challenged and subject to public and parliamentary debate. Public policy must exercise abundant caution and insist on regulatory safeguards.