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Ep 375: Karthik Muralidharan and the Bureaucrat's Burden

The Seen and the Unseen - hosted by Amit Varma

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Incentives and Resistance to Technological Change

Weak incentives hinder government's adoption of new technologies and improvement in productivity. Resistance to computerization in the past was due to job fears and inability to handle technology, leading to the need for voluntary retirement schemes. Academia and seniority-based systems also face challenges in evolving. The example of bank modernization in the 80s through VRS and golden handshake showcases the importance of upgrading technology despite initial costs. Bureaucratic inefficiencies in government departments are partly due to lack of technological know-how and reliance on traditional file-based systems, perpetuating red tape and opacity.

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