The DICGC came to be fully owned by the RBI and the board strength was raised to nine. The Act provided for either the RBI Governor or the Deputy Governor (DG) heading the board, but tradition led to one of the DGs chairing the board. The integration of the two also allowed funds to be transferred from one arm to another in case of a financial problem. Indeed, in 1978, the CG fund had to be bailed out by the DI fund as the former had more claims to settle compared to the collected fee income. The claims had partly gone up as the guarantee cover had increased from 75 percent to 90 percent, which also led to a rise in moral hazard. … [Read more...] about Credit guarantees of 1970s make a comeback
An alternative is for communities to think regionally. There may be opportunities for new companies to fill in gaps in the supply chain that were filled previously by companies in other countries. To make that happen, regions might better succeed if neighboring communities collaborate to develop compatible industries as well as warehousing and logistics to engage with an industry looking for a more resilient set of suppliers. … [Read more...] about How COVID-19 teaches us that succeeding and winning are different
But don’t let the pundits and big platforms tell you this is a battle between politics and tech. It’s a battle between a handful of high-profile politicians and a handful of high-profile platforms. Tech is not a monolith. What’s good for Facebook isn’t necessarily good for innovation. Trump is only pursuing this issue out of ego and spite, but limiting the reach of the giant platforms may be exactly what we need to create the next generation of truly great social networks. … [Read more...] about Trump vs. Twitter: Is there a silver lining in the Section 230 fight?