CEX and FOREX

The CIA had for a long time covered up its ‘black bag work’ - illegal jobs such as breaking into embassies , often employing exotic tools (miniature cameras, eavesdropping equipment etc) and weapons (poison gas pens, toxic paints, IEDs etc) – for fear that it might arouse public outrage and young people might stop considering it as an ethical career choice. However, when these techniques were eventually officially made public, the number of applicants aspiring for a job in the Agency skyrocketed. Why? Because for years, the public had been made to believe that James Bond Novels and movies were impossible fantasies, that the technologies depicted in them could not exist even in the next few decades and that the government would never authorize acts that Bond routinely did; now, suddenly, a person could legitimately aspire to live the life of a Bond.

In 2004 , John Perkins in his book “Confessions of an Economic Hitman” described his role as an ‘Economic Hitman’ -a consultant to several Governments and their Heads of State, an advisor whose real job was to economically exploit and debilitate his clients in the process of ‘developing’ and ‘aiding’ their economies. He was seduced into the job which held glamour and power, intrigue and beauty, untold wealth and generations of dependence. I do not know whether his ‘confessions’ (which are no less interesting than a spy story, replete with tales of Middle-Eastern palaces and doe-eyed beauties) tempted more budding economists into the profession or discouraged them. However, the book does show the impact a single economist can have on the development, the politics and the destinies of several nations.

Money is a unique commodity in that although it is intrinsically worthless, it is a store of value. It can attach tangible values to desires and powers. The desire to have, to give, the desire to do can be quantified in terms of money, as can be the powers to satisfy these desires. Hence it is the common denominator in most, if not all (this is debatable) human activity. Economics, then, is the common thread that runs through almost every discipline of study- not just management but also philosophy, ethics, governance and leadership. By determining what we are willing to sacrifice in order to get something, we can attach a value to it, and economics can guide us on how to maximize this value. Fundamental to this process is making the choice of what we really want most, or that which we would not give up at any cost or price- it is this choice or (set of choices) that defines our value system. In ‘The Prince’, Niccolo Machiavelli describes the dilemma that what appears best for an individual may not be best for the society and observes that the king must deal with this dilemma at every step while carrying. The question of determining at what point the ‘greater good’ should supersede the welfare of an individual is as fundamental as defining our ‘fundamental rights’ and really how fundamental they are. There are democratic methods in economics which are being used to answer such and related questions.

Is it more important to find a cure for cancer or for tuberculosis? Is democracy really better than autocracy? Should a person give up his life for the society? What really is his society? Should we bother about these questions or just make a lot of money? Economics offers the hope of answering diverse questions. At a macro level, it is applied by nations to maximize growth. At the micro level, it appears in the form of game theory which can be applied to a single transaction, even a simple bargain. Indeed, the theory can even be applied to politics to determine whether dissenting members of the party can rebel and form a breakaway faction; this knowledge can help the politician to determine the size and constitution of his ‘core’ group.

With a view to providing a common platform to those associated with XLRI interested in finding answers to such questions (and more such questions), a place where they can meet and exchange ideas, we, the students of the 2009-10 batch of the General Management Programme in XLRI envisaged the formation of ‘The Club for Economics at XLRI’, or CEX. However, led by the democratic spirit that is ingrained in many students of economics, we decided that it be better to build it not as an exclusive club but rather, as a society or a forum which will embrace and even reach out to all who share the passion for this quest , and thus was born the ‘Forum for Economics’- a forum for sharing ideas, asking questions, for observing the environment from an economics perspective, for studying policy, ethics, and for finding tangible solutions to problems .

In less than one term, it has become a vibrant forum of enthusiasts who regularly meet and discuss, make presentations, debate, bounce ideas and work on projects. We are pleasantly overwhelmed by the support and participation of students who are contributing to generate value in the Forum. Like in any other startup, at first one has to put in something and create value. The quality and number of ideas generated are indicative of the substantial amounts of creative faculties that the GMP students are investing in FOREX. On popular demand we have decided to intensify our activities by taking up larger projects and also to reach out to more people to generate more ideas and interest in economics. You can expect a periodic newsletter with updates of our activities and ideas soon. Those who would like to know more are welcome to contact us.