obj of intervention?

-bridging gaps -> institutional voids

emerging markets are likely to have gaps which can be solved

unchecked groth? associated with inflation?

can you drive through "power corridoors"? emerging markets.

problems w/ closed markets: like Sri lanka? Will have to follow ggreece to
liberalise

benefits accruing to the lower sections

burgeoning middle class:
prone to spending.

STEM industryr incentivise education wrt their businesses as high ggrowth

NEGATIVES:
Prone to FINANCIAL crises. kind of a emerging quotient
IPR are less..piracy
implementation of regulation

customer credit: worthiness of a customer

ddistribution impediments : in the context of hard infra..

Due diligence: RANBAXY & relicare. forged docs/results

How do markets function? Facilitated by "institutions". Platforms are a type of

those facilitators
Facilitators are absent: hence insitutional voids
what existed before this faccilitation was operational inefficiencies. Like calling
through a STD outlet to your relatives.

Market intermediary: (not restricted to technological, even phisical, will dalals

be cateegorised like that?)

OPTIONS:
1. Replicate? or ADAPT... Adapt probably in emerging market
2. Collaboration is the way to win
Chit fund is supposed to be ad-hoc measurere to raise money. but sahara converted
it to a business model.
INtermediaries are tehe informational comapanies

INSTITUTIONAL VOIDS Cont..

SOURCES OF MKT Failure:
Emerging
ABsent sources of market info
uncertain regulatory eenv
inefficient judicial system

for indians, licensing o fproduct subscription could also be a hurdle in

comprehension. Too many regulations..

How to quantifying the VOIDS:

transaction cost
well-functioning markets:

UDyog - aadhaar? mechanism s to find out the company

Regulations in :
1. Rgister, start, business enforce contracts
register property & buidling warehouses

High liquidity:
ease of selling/buying

Greater degree of trransparency: liek an RHP to be isssued w/o which listing isnt
possible.

INformation aymmetry: veracity of e-commerce lso is

Difference in knowledge b/w buyer & seller

buyers aree known to overpay )systematically)

FReason of Failures:
1) incentive conflicts, as lawyers themselve make the process touhger. Hence it
becomes inefficient to get justice easily

a)differeential information: hoarding of information and then charging for it(like

in finance. )
Potential conflict so f interest.

b)Institutions to intermediate b/w buyers & sellers

- enforcing of constraints should be rliable, not likehow RBI took 2 years to
impose on Financial Apps.

HIpa health insurance of portability agency

EHR: electronic health rec