Prof. R Vaidyanathan is a renowned economist, currently(2017) in IIM Bangalore. He discusses some functional aspects of caste system.
First 12 minutes of the video covers caste system.
- Risk mitigation: In case of business failure, fellow members of caste render support. Lack of such initiatives and growing individualism is leading to increased cases of suicide.
- Credit: It is easier to get credit for personal and business purposes. Minimal documentation and collateral required. Also, rate of repayment is high due to mutual trust and fear of god. Unfortunately, the new age, liberal, urban middle class fears neither law nor god.
- Market access: Through caste-wide network spread across geographies.
- Support to youth (budding entrepreneurs): Patels have dominated motel business along the west coast of USA. Their uncanny ability to induct young and dynamic members from their caste is one of the many reasons behind.
The prof. also discusses other issues related to Indian economy.
- FDI, FII – myths
- Prevailing fashion to imitate everything western
- How demonetization could be better implemented
- Present government