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IPL Rescheduling Signals To Investors

Source: http://indianeconomy.org/2009/03/27/ipl-rescheduling-signals-to-investors/
Posted on Friday, March 27th, 2009 | In Economics, India, Investing Lessons
Contributed by: Edward Hugh (http://globaleconomydoesmatter.blogspot.com) -

After 26/11, Jack Welch pointed out that the attacks posed a question for India in terms of its ability to manage itself. China, although under authoritarian rule, had managed to pull off the Beijing Olympics, and assured safety for investors. India faced that question, post 26/11.

Now, with the cancellation of the IPL tournament in India and its move to South Africa, what message has gotten sent out?

Is the “offshoring” of the tournament a signal that the government is unsure of the overall security situation? Is this an indication of how over-stretched and creaky the governance infrastructure is?

What signal does this send to investors? After all, perception is everything, and for really large investments, it is typically “which BRIC ie, Brazil or Russia or India or China” which is often key.

Of course, it is also possible to read too much into one thing. Apparently England also got pushed out because their security would be over-stretched, so the questions raised above need to be qualified.

India’s elections ARE a mammoth exercise, and even more so, with terrorism threats.

What do you think?

Last 5 posts by Edward Hugh





About Edward Hugh (http://globaleconomydoesmatter.blogspot.com)
Edward Hugh is a macro economist, who specializes in growth and productivity theory, demographic processes and their impact on macro performance, and the underlying dynamics of migration flows.

Hugh is a founding member and regular contributor to a number of economics weblogs, including Global Economy Matters, Demography Matters and a number of others.

Edward 'the bonobo' Hugh is a Catalan economist of British extraction based in Barcelona. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again". He is currently working on a book with the provisional working title "Population, the Ultimate Non-renewable Resource".

Edward also writes regularly for the demography blog Demography Matters. He also contributes to the Indian Economy blog . His personal weblog is Bonobo Land . Edward's website can be found at EdwardHugh.net.

Edward follows in detail the Indian, Italian, Spanish, German and Japanese economies. He also has a more than a passing interest in the economies of Turkey and Brazil and in the emerging economies of Eastern Europe.

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