Markets for Development Shubhashis Gangopadhyay November 26, 2003.

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Presentation transcript:

Markets for Development Shubhashis Gangopadhyay November 26, 2003

What are Markets? Buying and selling Contracting Contingent contracting

Why? Voluntary Diverse Self-sustaining

Complex Systems Access Information Awareness Long-term effects Aggregate effects Rural markets

Technology Fishing villages in Kerala Perishable Wastage and price volatility Technology of cell phones e-chaupals IDE-I and water use

Markets for Development Health Education Employment Income

Village Kiosks Cost of setting up a health kiosk: Rs Break-even spend per person per month: Rs. 5 Poverty line at Rs. 328 per month per person 1.5 per cent of total expenditure

Risk Ability to bear loss High probability Correlated risk Exposure to risk Commercialization!

Alternatives Contract farming Micro-finance institutions Weather derivatives

THANK YOU