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

A Background Note on Formation of Karnataka


Karnataka is etymologically said to be derived from the word KaruNadu or loft land referring to the topography of the state. The Kannada speaking population that constitutes the majority in the state has a rich civilization and by many accounts is one of the oldest languages in the country. At its peak, the Kannada speaking population ranged to northern borders of current state of Maharashtra to the northern part of current Uttarandhra to southern reaches of Tamil Nadu. Chalukyas under Pulkeshi II defeated Harsha of Kannauj on the banks of Narmada. Rashtrakutas reigned over Northern Karnataka and Maharashtra. Gangas and Hoysalas ruled over South Karnataka while Kadambas too had their rule in most parts of Karnataka.  The Vijayanagara dynasty spread from Goa to Andhra with Hampi being one of the most prominent cities in the world.

By the time British consolidated power in India by 1857, the Kannada speaking population was divided across many provinces. Post British victory over Tippu Sultan, the British took control over the coastal regions and named it Canara District. With passage of time the districts were divided into two districts North Canara and South Canara for administrative reasons. The North went to the Bombay province while the South went with Madras province. The districts of Bijapur, Dharwad and Belgaum were part of Bombay presidency. Gulbarga Bidar, Raichur were part of Nizam’s rule. Bellary was part of Madras province. The rest of the districts were part of the Princely state of Mysore. Coorg was a Chief Commissioner’s province post deposition of the last king.

This continued past independence of 1947. There was increasing movement across the country for reorganizing the states on linguistic basis for administrative convenience. The movement took a sharp and violent turn in the Telugu speaking regions to call for unified state of Andhra Pradesh. The demand was granted finally in 1954. Bellary, instead of being part of Andhra along with its neighbouring districts was handed over the Mysore state. Once the demand for Andhra was granted, it opened a Pandora’s Box. The solution was constitution of Fazal Ali commission to reorganize the states on linguistic basis.

Fazal Ali commission recognized the need for Kannada speaking population to be integrated in a single state. It recognized their history and thus the justification for reunification into a single state of Karnataka. Therefore it suggested the Kannada speaking regions of other provinces to be merged with Mysore state. Post-independence, the Mysore kingdom became the Mysore province to which Bellary was merged with in 1954. There were of course misgivings in Mysore over the feasibility of the non-Mysore Kannada speaking regions being merged with the state. It had more to do with possible structural changes in the power equations. At the same time, there was increasing pressure from the Kannada speaking districts in Bombay and Andhra Pradesh for speedy merger with Mysore state. Fazal Ali Commission had recommended the merger of Bijapur, Dharwad and North Canara districts of Bombay State to be merged in toto with Mysore. Belgaum too would be merged with Mysore but the Marathi majority Chandgad taluk would remain with Bombay state. Gulbarga and Raichur districts would merge with Karnataka. They were part of Andhra Pradesh having joined there from the Nizam’s state of Hyderabad. Parts of Bellary district was supposed to transfer back to Hyderabad but it never took off. Bidar was proposed to be retained in Hyderabad state but later reorganized. Few taluks including district headquarters of Bidar were transferred to Karnataka, while some taluks went with Bombay state with a couple of others remaining with Andhra Pradesh. However, in the final result, a couple of taluks each in Raichur and Gulbarga districts remained with Andhra Pradesh.

Kolar though Telugu majority remained with Karnataka for economic reasons. Coorg till then a Part C state was merged with Mysore state. South Canara was transferred from Madras state to Mysore state. Gundlupet taluk of Coimbatore district of Madras state owing it to be Kannada majority was made part of Mysore state. However, Kasargod district of Madras state remained with Madras despite being Kannada majority. Similarly Akkalkot and parts of Solapur from Bombay state were not merged with Karnataka.

No sooner than new Mysore state was announced, there was dispute over Belgaum. Bombay wanted Belgaum to be part of Bombay state. The dispute continues till date though in practice it is on the backburner. The Mysore province was renamed as Karnataka on November 1, 1973. The purpose of the post was to be a primer for background of Karnataka formation. The present contours of Karnataka are an outcome of the struggle pre and post-independence.







Comments

Popular posts from this blog

Decision Making as Output and Bounded Rationality

The Chicken-Egg Conundrum of Economics

A Note on Supply-Demand Dynamics