Aug 12, 2005

The truth behind the figures

Dr. Madhukar Shukla posts some facts behind some accepted myths about jobs and economic booms on his blog

Thought I'd quote this here:

But numbers also deceive and distort reality... and such is the power of numbers that we may not even be aware that we are hallucinating the world we (choose to) live in.

The "Booming" Service Economy of India:

It is agreed - and is true - that around 50% of India's GDP comes from service sector (which has been growing at a phenomenal rate of 10-11%... or whatever)... I mean, look at the growth of IT, software exports, banking, insurance etc., and who can deny this "reality"...till one looks at the constituents of serice sector with their %age contribution to GDP:
IT & ITES, form part of 1.1% "Business Services"

Banking is relatively more at 6.3% of GDP, with insurance piddly at 0.7% of the GDP.

Dr. Shukla also puts the FDI boom in China and the Jobs "boom" in the US through a microscope and concludes:

Didn't Mark Twain said: "there are lies, damn lies, and statistics."... And almost 50 years back Darral Huff wrote a book called 'How to Lie with Statistics' !