Friday, November 16, 2007

The eco of bangalore?

I have subscribed to Mint now for their new one year offer at 299 and find the paper pretty interesting and fresh however I read a recent article of theirs - which was called the economics of bangalore - probably to keep their new bangalore readers thrilled. I was kind of confused after reading the article - Coase's theory explains why firms at all exist in the first place - because markets are inefficient due to high transaction costs but it can also explain China's boom and not just Bangalore's. I still find Bangalores success a mystery - its probably the weather - probably the only place computers could run without AC through out the year;)But a lot of Bangalore's success is due to Infy and its founders (I still have issues that they (Cos like Infy) dont pay a very high tax but thats a different issue) and probably even companies like Wipro. Bangalore somewhat is also an example of how a brand just keeps rolling on and on. But its taken a beating of late - due to the politics of bangalore and wht not but primarily because its over grown itself - but i was in chennai recently and the traffic in most of chennai is getting as bad or worst than bangalore. Bangalore roads are better in some places. What do u think needs to be done to bring bangalore back on its track and more importantly how does one de-risk banglore from a single Industry focus of IT.

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