Why Public Finance should be taught to B School Kids

This post is in response to the observation from many of the interactions that i have had with B School kids who are young chaps fresh out of college or are least aware of the realities of life around them even if they have work experience. These guys are very suave about personal finance: investing in stocks and managing their personal wealth. Almost half of the fresher class in an above average Business School are engineering majors, and as usually predisposed to qaunt and hence finance even if they do not understand the difference between debt and equity. Anything concerning quantitative aptitude in India is considered cool because intelligence is assessed by the ability to crunch numbers here and not by the ability to communicate coherently or think creatively. It is very much the crab shell mentality that inhibits growth.

Corporate Finance is taught to business school folks and for them the interests of the Firm and its Clients hold the maximum attention. As recent economic history has taught us in the light of the economic recession and current stagflation that we are undergoing, not everything lies in the hands of the ‘Firm’, the Government and the Civil Society at large are influencing more than ever the discourse of the free market, if ever there is an oxymoron of an animal existent such as that. 

 As an Infrastructure Consulting Sector Professional would vouch, most large scale projects are either directly or indirectly funded BY THE government. Even for the ubercool Information Technology Professional, the IT Park in which their glass glazed office blocks are situated are on Tax Fee Special Economic Zones. This translates in to Land and Revenues being indirectly subsidized by tax payer rupees. Again Public Finance kicks in to play.

The ultrasexy Investment Banker who earns huge bucks out of Grad School, is mostly managing Investment Funds which have Government Bonds in it.

Public Finance, International relations, Business Diplomacy are the electives Business Schools should offer in a Multipolar world in which we reside.

 

 


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