All posts by Chaitanya Devpurkar

About Chaitanya Devpurkar

Chaitanya is an Equity Research & Alternative Investment Intern at UpperCrust Wealth, He has cleared CFA - Level 1 & FRM - Part 1 Exams & currently studying for further levels. He is an Equity enthusiast & avid learner of Finance.

Power Plays and Diplomatic Chess: Unearthing the Underlying Motives of Modi’s USA Tour

Power Plays and Diplomatic Chess: Unearthing the Underlying Motives of Modi’s USA Tour

04 July 2023 4 min read

Last week US Secretary of state did a trip to Beijing, Surprisingly that was the second most Important event in USA Geopolitics, The most important one was Indian Prime Minister Narendra Modi’s visit to Washington D.C, Where he met US President Biden & gave a speech to congress.

“In the past few years there have been many advances in AI, Artificial Intelligence. At the same time there have been even more momentous development in another AI, America & India.”
– PM Modi addressing the US Congress.

Now the PM’s visit wasn’t a courtesy call, It included broad array of economic and military agreements. I am not going to list which agreements happened between the two countries. You have probably already heard it or seen it in a bunch of newspapers or TV channels about them.

I am here to talk about what’s behind the photo-ops and the curtains of this speeches and show-biz.

Why the two countries all of a sudden are looking each others as their partners in the past few years and what is prompting this visits and deals, despite the not so good past relations between the two democracies.

But the main question is: Should we call this increasingly deep and comprehensive partnership an “alliance”? While some argue that the Russia-China partnership should be termed an “alliance” due to its deepening and comprehensive nature, the situation between India and the U.S. is more complex. International relations scholar Paul Poast presents a compelling case for labeling the Russia-China relationship as an “alliance, “even in the absence of a traditional mutual defense agreement. A similar argument could potentially be made for India and the U.S., particularly if focusing solely on military cooperation and shared policies regarding China. However, several complicating factors come into play in this scenario. Firstly, India is still on fairly good terms with Russia. Secondly, the U.S. continues to pursue a friendly approach towards Pakistan, which has historically been considered India’s adversary. These factors indicate that while there is a growing convergence of interests between India and the U.S., Labelling it as “alliance” might not be just right yet.

But it’s obviously headed in that direction. Biden called the partnership “one of the defining relationships of the 21st century”, while Modi declared that “even the sky is not the limit.”

When it comes to the Modi’s visit to the US, The elephant in the room is China. Now I won’t say that’s the only reason; of course economic collaboration is also important one. But those two are not independent; In an ongoing attempt to “de-risk” more and more companies are shifting their manufacturing operations away from China, India has emerged as a promising alternative due to its vast labor force. Additionally, leaders in the United States recognize that a stronger Indian economy would contribute to a more balanced power dynamic in Asia, particularly in relation to China. Even without considering the China factor, both the U.S. and India are highly interested in gaining access to each other’s large and profitable markets.

The defense piece , is all about China & no one should pretend otherwise. Anyone who believes that China has no role on Modi’s red-carpet reception in Washington probably also believes that fish can fly. Currently China and not Pakistan is India’s biggest threat – India’s defeat to China in1962 war. China still claims pieces of Indian territory. The face-offs between the two armies that sometimes turn bloody & China encircling India with its bases & alliance. With Russia looking weaker, The United States is realistically the only country that can help India to resist domination from it’s giant neighbor. On the other hand, for USA , although no one expects India to jump in on a war over Taiwan or South china sea, The stronger India means more balance of power in Asia & One more country China has to think about other than USA.

Now not all are happy about this scheme of arrangement, Both on the US side as well as India side. On the U.S. side, some progressives are very upset about the prospect of an alliance with a country run by Narendra Modi, while on the Indian side, the shadow of U.S. support for Pakistan during the Cold War looms large.

Modi was welcomed with great enthusiasm by both Democratic &Republican leaders, However, a small faction of progressive lawmakers decided to boycott Modi’s speech, strongly criticizing the Indian Prime Minister’s track record on human rights. These concerns were echoed by progressive voices in the U.S. media, who view Modi as someone with anti-Muslim prejudices and perceive his actions as detrimental to India’s democratic principles.

In my personal Opinion The Americans are not that good at understanding any country’s politics let alone Indian politics. Their knowledge about Modi or India comes from the most natural source – Educated Indian progressives & educated Indian progressives, generally speaking are not that great admirers of Mr. Modi.

Indians too are vary of America, their continuous support to India’s enemy Pakistan. Pulling a blind eye to Pakistan’s terrorist activities & instead keeping up the supply of weaponry to them doesn’t go well with Indians too. While America lectures India on Human rights issues we all know what happened in Middle-east under their leadership, Most recent example being Afghanistan.

So there are obvious misalignment of thoughts between the two nations. But the Fruits of Partnership between the two countries outweigh those of differences .

If I were to comprehend this issue in one line, it would be “Both India &USA are choosing the lesser of the Evils.”

Both Countries; and more significantly India, are taking a leap and making a big compromise by allying with each other. Luckily for both countries this isn’t the worst alliance in history of Geopolitics. For the two nations, It makes sense to believe in each other. It will be easier for USA to persuade India’s leaders to be more liberal, as a friend and ally. And frankly, India might persuade USA to be a better country in certain ways as well. Fortunately, this appears to be exactly the approach both countries are taking.

In any case, I am more inclined to celebrate the US-India Partnership. There couldn’t be any more suitable countries than these two, who has the potential to promote Democracy, while also continuing to drive global economic development and also eradicating poverty.

GOOD LUCK TO INDIAMERICA!

The Power Law Phenomenon: Unveiling theMathematics of Inequality

The Power Law Phenomenon: Unveiling theMathematics of Inequality

24 June 2023 4 min read

The Power Law is a mathematical principle that has gained significant attention in recent years due to its ability to describe and quantify the uneven distribution of various phenomena, ranging from wealth and income distribution to the popularity of books and websites. Join us as we explore the power behind the Power Law and its far-reaching implications.

Understanding the Power Law

The Power Law, also known as the Pareto principle or the 80/20 rule, is a mathematical distribution that describes the uneven allocation of resources or outcomes. In simple terms, it states that a small number of events or entities often account for a large proportion of the observed phenomenon. Th e name “Power Law” comes from the fact that the relationship between variables follows a power-law function, where one variable is proportional to another raised to a power.

Signifi cance of Power Law in Daily Life

The Power Law has signifi cant implications in our daily lives, even if we may not always realize it. It helps us understand why certain things and people become extremely popular or successful while others struggle to gain attention. For instance, in entertainment and media, a few blockbuster movies, bestselling books, or viral videos capture the majority of our attention, while countless others go unnoticed. Understanding the Power Law allows us to navigate these trends, make informed choices, and explore new avenues of interest. Moreover, the Power Law also influences the way information spreads, impacting our decisions, opinions, and even the products and services we encounter. By recognizing the power of this mathematical principle, we can better comprehend the world around us and adapt to the dynamics of popularity and influence that shape our daily lives.

Applications in Economics and Wealth Distribution

One of the most well-known applications of the Power Law is in the fi eld of economics, particularly in analyzing wealth and income distribution. Empirical studies have consistently shown that wealth and income tend to follow a power-law distribution, with a small percentage of the population owning a disproportionately large share of the wealth. Th is has sparked debates about the fairness and sustainability of such distributions, as well as their potential impact on social and economic stability.

Power Law in Network Th eory and Social Networks

The Power Law also has a big role to play in understanding how networks, like social networks, function. In these networks, it’s often seen that some people or things have a lot more connections or links compared to others. We call these well-connected ones “hubs.” Th e Power Law helps us understand this pattern. It tells us that a few hubs have many connections, while most others have only a few. By studying this distribution, we can fi nd out who the key Influencers are, make networks stronger, and use our resources wisely.

Power Law in Science and Technology

The Power Law is not only helpful in understanding social networks but also in other areas like science and technology. In language, for example, the Power Law helps us understand the frequency of words. Some words are used very frequently, while others are used less often. It’s a pattern described by Zipf’s Law, which is a type of Power Law. In scientifi c research, we fi nd that a few highly cited papers have a big impact on their fi eld. Even in technology, the popularity of websites, apps, and social media platforms follows the Power Law. A small number of platforms become really popular, while others have fewer users.

Implications and Controversies

While the Power Law provides valuable insights into the distribution of resources and phenomena, its implications and consequences have been a subject of debate. Critics argue that the Power Law can perpetuate inequalities, leading to social and economic disparities. Th e concentration of wealth, influence, and resources in the hands of a few can hinder social mobility and lead to power imbalances. Understanding the dynamics and mitigating the negative effects of the Power Law remains an important challenge for policymakers and researchers.

Harnessing the Power Law

Despite the controversies surrounding the Power Law, it can also offer valuable opportunities. Recognizing the disproportionate impact of a few key factors or entities can help focus efforts and resources more effi ciently. In business, understanding the Power Law can guide marketing strategies and resource allocation. In social networks, identifying key influencers can amplify the spread of information or campaigns. By leveraging the insights provided by the Power Law, we can make informed decisions and improve outcomes in various domains.

Conclusion

The Power Law is a powerful mathematical concept that sheds light on the uneven distribution of resources, wealth, and influence in our world. It highlights the existence of a small number of events, individuals, or entities that have a disproportionate impact on various phenomena. From economics and wealth distribution to network theory and scientifi c domains, the Power Law helps us understand the underlying patterns and dynamics that shape our society.

While the Power Law has sparked debates about fairness and equality, it also presents opportunities for optimizing resource allocation, identifying key influencers, and improving outcomes. By harnessing the insights provided by the Power Law, we can make more informed decisions, design effective strategies, and create systems that are more equitable and resilient.

As we move forward, it is essential to continue studying the Power Law and its implications in different fi elds. Researchers, policymakers, and individuals alike can work together to mitigate the negative effects of extreme inequalities and foster a more inclusive society. By combining our understanding of the Power Law with ethical considerations and proactive measures, we can strive for a balanced distribution of resources, opportunities, and outcomes.