A very interesting post by J. David Foster on Aguanomics on how Droughts in India affect entrepreneurship. The analysis is mostly anecdotal.
One caveat is that it does gloss over the caste system which also inhibits entrepreurship in India as well as some patterns of land ownership under the Zamindari system in North India vis a vis absentee landlords in Bengal under the British which inhibited capital formation and investment.
The other outlier which is not explained by this analysis is Punjab which has entrepreneurship as well as big agriculture.
Overall an interesting idea but there are missing pieces and the casuality between droughts and entrepreurship is not as clear-cut as it appears.
HT (Infectious Greed)
