2. Zeitgeist, Gini Index & „Achhe Din“
Prof. Dr. Kailash Tuli and Prof. Dr. Willy Kriz

4. Jugaad situations:

5. Jugaad situations:

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7. Jugaad situations:

8. Jugaad situations:

9. Jugaad situations:

10. Jugaad situations:

11. Jugaad ‐ Innovation:
• creativity, thinking differently
• innovative and intelligent fix
• low‐cost solutions that bend rules
• maybe unethical, maybe risky
• enterprising street mechanics and political fixers
• create new things with small resources
• entrepreneurial spirit, flexibility
• no perfection …but it works

12. Jugaad  is part of the Indian Zeitgeist
poverty, developing nation, lack of resources for the population,
social inequality  Gini index  necessity is the mother of
invention („Not macht erfinderisch“)
 Achhe Din
e.g. Mars Orbiter Mission
• first Asian nation to reach Mars orbit
• least‐expensive Mars mission to date
• cost was equivalent to less than a single bus ride for
each of India's population

13. Zeitgeist
• “General intellectual, moral and cultural climate of an era”
• “Spirit of the age or spirit of the time”
• simply implies “motion” or change
• intellectual fashion or dominant way of thinking, feeling and acting
• represents and influences the culture of a particular period in time
• typified for example in architecture, art, and fashion

14. Zeitgeist - Examples
• 1856‐1947 struggle for
Independence & Gandhi era
• 1947‐1990 nation building
• 1990 onward globalization, IT
• 2014 Acche Din, e.g. 100 smart
cities like Delhi L Zone Smart City
• Democracy
• Caste System
• Dress
• Food habits
• Education and work of women

15. “Zeitgeist Movement”
• established in 2008 by Peter Joseph
• aims at transformation of society and its economic system
• goal is a global resource‐based economy
• sustainable economy without using money
• critical of market capitalism

16. Gini Index
• developed by the Italian statistician and
sociologist Corrado Gini
• he published 1912 his paper “Variability and
Mutability”
• died in Rome 1965; he could not have known
that 50 years later, the UN would still use
his name in their annual rankings of nations

17. Gini Index / Gini ratio / Gini scale
• is widely used as a measure of inequality
• it is a way of comparing how distribution of income in a
society compares with a similar society in which everyone
earned exactly the same amount
• inequality on the Gini scale is measured between 0, where
everybody is equal (perfect equality, everybody has the
same income), and 1 or 100% (maximal inequality), where
all the country's income is theoretically earned by a single
person (and all others have no income)

18. https://community.lithium.com/t5/Science‐of‐Social‐blog/The‐Economics‐of‐90‐9‐1‐The‐Gini‐
Coefficient‐with‐Cross/ba‐p/5466
The Lorenz curve is a graphical representation of the cumulative
distribution function of the empirical probability distribution of
wealth or income. (Max Lorenz, 1905).
Gini Index is the ratio of the area between the line of perfect equality
and the observed Lorenz curve to the area between the line of
perfect equality and the line of perfect inequality.

19. Gini Index examples
• South Africa 63.1
• Hong Kong 55.7
• China 47.5
• USA 45.0
• Russia 42.0
• India 36.8
• UK 32.3
• Germany 27.0
• Austria 26.3
• Sweden 23.0
(Source: www.cia.gov)

20. Gini Index examples

23. Gini Index – India Examples
• Income poverty: India contains the largest concentration of people
living below the World Bank's international poverty line of US$ 1.25
per day: estimated as 25.7% in rural areas, 13.7% in urban areas and
21.9% for the country as a whole (Gov. of India 2013); growing beggar
population and homeless people.
• The standard of living: India shows large disparity; e.g. rural areas of
India exist with very basic (or even non‐existent) medical facilities,
while cities boast of world class medical establishments; low access to
improved sources of water; missing education for children.

25. Gini Index – India Examples
• About one third of India's children under the age of five are
underweight; high child mortality rates
• Economic inequality between India's states has consistently grown: the
per‐capita net state domestic product of the richest states is more than
three times that of the poorest
• Corruption in India is perceived to have increased significantly

26. „Wealthy nation – poor population“
The Indian economy is nominally worth about US$ 2.182
trillion; it is the 7th‐largest economy by market exchange
rates, and is, at US$ 8.027 trillion, the third‐largest by
purchasing power parity. With its average annual GDP
growth rate of 5.8% over the past two decades, India is one
of the world's fastest‐growing economies.
However, the country ranks 140th in the world in nominal
GDP per capita.

27. • The Fortune at the Bottom of the Pyramid by C.K. Prahalad
• BoP is the largest, but poorest socio‐economic group (in global
terms, this is the 3 billion people who live on less than US$ 2.50
per day)
• Prahalad proposes that businesses, governments, and donor
agencies stop thinking of the poor as victims and instead start
seeing them as resilient and creative entrepreneurs as well as
value‐demanding consumers
Bottom of
the Pyramid

28. Achhe Din

29. Achhe Din
• A term in Hindi language; literal translation is “Good Days” but in
deeper sense and in this context about “The Good Times Ahead” =
Achhe din aane waale hain
• Term came in vogue about 2 years before the general elections in
India in 2014. It was used as slogan of the Bharatiya Janata Party (BJP).
Prime Ministerial candidate Narendra Modi, indicating that a
prosperous future was in store for India if the BJP came into power
• Result was that the party came in power with historical winning
margin

31. SWOT ‐ India
• 3 Ds:
• Democracy
• Demographic dividend (65% below 35 years old)
• Domestic market / consumption
• English speaking population
• Information and Communication Technology
• Educated human resources for software development
• High aspiration in society – Acche Din
• Entrepreneurial spirit, creativity & innovation potential
• Growing literacy
• Growing income and purchasing power
• Natural Resources
• Jugaad (?) as a rescue

32. SWOT ‐ India
• Gini Index – inequality of the society
• Poverty
• Natural desasters (climate, weather cycles)
• Corruption
• Bureaucracy
• Lack of infrastructure
• Poor legal systems
• Jugaad (?) as unethical & risky

33. SWOT ‐ India
• China slowdown
• Spiritual hunger in the age of plenty
• Tourism & health services (Yoga, Ayurveda)
• Medical services
• Leadership in Information and Communication Technology
• Market size (especially rural India; about 10% of worlds
consumers live in rural India) and Indian domestic market
growth; potential of the „bottom of the pyramid“

34. SWOT ‐ India
• Conflict with Pakistan
• Terrorism
• High migration to urban India
• High regional inequality  conflicts within society
• High internal competition for resources
• Increasing riots, crimes & rape cases
• High rate of „poorest of the poor people“  Angst
• Rising labour costs
• Overpopulation