Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Theorizing the R-Day Parade- Economics Approach


January 26, the celebration of Republic Day has become synonymous with the military parade along the Rajpath. Besides being a tourist attraction it reinforces the sense of national pride and honour. While the Rajpath where the President takes the salute, is the cynosure of attention, the parade makes its way across parts of Delhi.  Yet, on and off, there have arisen questions over the necessity of parade.  It might not be far off when woke liberals might call for ending the parade on grounds of encouraging intense nationalism. To some in the right, it if often viewed as hangover of the Soviet style parades that dominated the Communist Soviet Union.

Military parades are known to have existed for centuries with records documenting the same in Roman and Greek times. The modern counterparts are however, around a couple of centuries old, with the oldest perhaps commemoration of fall of Bastille. The evolution of parades is not uniform. Though objectives might be similar to varying degrees, different contexts have driven the same in different countries. As Wikipedia puts it, a military parade is formation of soldiers whose movement is restricted by close order choreography often through drilling or marching. Incidentally, from times immemorial, people recognized the role of formations in actual combat. Indian mythology is replete with instances of formations defining the combat. Contemporary parades however are ceremonial and commemorates a certain glorious moment in history of the country. In the erstwhile Soviet Union, it was the revolution of 1917 that was remembered while similar parades are held in Europe to celebrate the V-Day of 1945- the surrender of Germans in World War-II.

Incidentally US steered away from formal military parades though in recent times, President Donald Trump has indicated a desire to have one on July 4, celebration of their Independence Day. Yet barring a quarter or two, the enthusiasm for parade in US is low. However, there have been parades commemorating certain events like victory in Gulf War of 1991 or to demonstrate public mobilization in New York in World War II etc.  The import of these military parades in the country’s politico-cultural milieu merits deeper engagement.

Incontestably, the relative power in the global governance calculus determines the standing of the country. The power is a function of political, military, economic and cultural prowess. To a country with higher echelons of power, possibilities of exercise of the same with relatively lower costs is immense. Besides, it serves the purpose of the external interventions, direct or indirect in the internal affairs of the country. Implied, is a need to construct a mechanism of exhibiting the scale of power to the rest of the world. The history of mankind is full of combat as a preferred mechanism of conquest. Formation troops demonstrated greater discipline and thus seemed indispensable. Therefore the early roots of drills and marches were in a way anchored in cornucopia of military formations. In modern times with wars with increasing weaponries, the manifestation of formations has changed. Yet the instilling of discipline and creation of new formations necessitate building blocks and thus drills and marches occupy key role in training and ceremonies.

The slow shift towards economic and cultural warfare away from physical warfare meant that new models have to emerge to signal the military might to both external and domestic audience. There is of course a strong desire and essence in keeping the strategy, tactics, weaponries and other equipment secretive. Yet the country needs to send a signal to the audience, domestic or foreign, indicating the might both in physical and technological terms. Thus a signal that is direct, credible and non-coercive is inevitable. In recent times, they have manifested either as joint military exercises with friendly countries and as military parades linked to historical accomplishments.

The context serves therefore the backdrop for the same. There are formations marching conveying the signals to the observers on the  military might in terms of different units and commands of the three forces,- army, air force and the navy. Further, the march past are followed by the display of weapons and equipment and infra etc. pointing the holdings of the armed forces, a signal on what to expect in case of a war. At the same time, it is a signal to domestic constituency also. The domestic citizenry has a right to know the state of defences in the country. It would send the country into panic in case of unsecure defences. Therefore, there must be occasions to reassure the citizens that the country is in safe hands of the armed forces. The military march-past followed by the demonstration of military equipment sends a signal of the preparedness of the country in meeting the prospective external challenges. It indicates the latest advancements in the military weaponry systems. The Indian context incorporating tableaux from the states showcasing their culture and PSUs showcasing their achievements, are add-on signals in indicating the economic dexterity and cultural abundance of the Indic society.

Apart from celebrating certain historical triumphs and achievements, military parades are a signal direct and indirect to both the external audience and the domestic citizenry on the state of national preparedness in case of any threat to national security. However, it is important to see a parade as a signal and not an end itself. There is an interesting anecdote, perhaps apocryphal on the military parades and exercises. There was exercise of military performing various tricks in honour of visiting Chinese dignitary.  It was the days of ‘Hindi-Chini Bhai Bhai’ even as China was building roads on India’s land in Ladakh. Seeing the perfection of the tricks executed, the visiting dignitary seemed to have asked Indian defence minister Krishna Menon, how they perfect their tricks and are they practical. Krishna Menon’s reply was practice makes them perfect, yet some time later when the war came, Indians were found wanting. Therefore, it is imperative, the parades are mere signals and not the actual combat. The objective is to be prepared to be perfect for actual combat for which parades are building ground and signalling fora.


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