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

BJP and Conquering New Territories: Some Notes

 

A 2013 post “Deciphering the Strategic Logic of Electoral Alliances” discussed in substance the theoretical underpinnings of a political party choosing to go for in for electoral alliances for short term gains. There are push factors and pull factors that come into play. These were sought to be analysed through the prism of management theories how needs of both the national party eager into an alliance and the regional political force which too would be equally keen to enter into an alliance. To a political party making a headway in a state is always going to be difficult. It would be easier to make the first wave of gaining let us say around 10-15% of the vote in a wave election or so but would rather be long climb with returns operating at a decreasing scale till it hits around 35-40% wherein the party is in a position to have a strike at the government formation. These long years which yield sub optimal returns are difficult to keep the party workers motivated. Similarly to regional parties, they might be comfortable in their state but would have national aspirations in which they see a partnership of national party valuable. Further as the NDA-1 demonstrated, many were regional parties that had just making their entry as a political force. They were new entities carved out of existing forces and thus needed some support from established national party which made it a win-win for all the parties.

 

To a political party, there exists a desire to capture power both at centre and the states. Yet, they are confronted with trade-offs. As they morph into national parties, they have to trade-off some of their identity that has states or regional issues anchored into it. An obsessive focus with the regional issues might imperil in transformation to national domain thus opting for a relatively risk Free State party status. Thus it is essentially a cost benefit analysis that drives a political decision whether to expand nationally or keep the focus into a specific state or two. At certain other level, many regional parties are personality driven. In an endeavour to transform into national force either the leader has to sacrifice regional ambitions and focus on parliamentary career where they might have to spend decades in opposition. In fact, for the first forty odd years of Indian polity, each party took care to project itself as national party and not be bounded to regional confines. It was first success of DMK in 1960s and 70’s followed by AIADMK and later the rise of TDP in the 1980s that began the rise of the regional parties. They achieved a critical mass around late 1990s but late 2000’s or early to mid-2010s they began to losing their bargaining power. The rise of the Modi dispensation with back to back absolute majority governments have eroded the power play of the regional or sub regional forces at the centre.

 

To the BJP, in the pre-2014 years, there used to be description in the political circles. The BJP would have to depend on the North West Monsoon for a good harvest in seats since there would obviously be the South East drought especially the KBOATT problem referring to the eastern and southern states wherein BJP was hardly expected to gain less than handful seats. The Modi wave has enabled BJP consolidate itself in North-East, Bengal and Orissa with friendly regional parties in Telangana, Orissa, Tamil Nadu and Andhra Pradesh. Only Kerala seems the frontier where BJP cannot make a headway either directly or through the help of regional allies.

 

To the BJP as it plans to capture power in the states where it is a marginal player so far, the current plans seem to be indicative of something described below. Orissa does not seem to be on their priority list to capture power in the state. There are friendly relations between ruling BJD and BJP and thus the fight is more of a symbolic one. CM Naveen Patnaik enjoys significant popularity and his equation with PM Modi has been very good. Therefore it is unlikely there would be attempts to dislodge him. It would be more of an arrangement wherein both parties might share seats in parliament with BJD having comfortable majority and BJP as the opposition in the state assembly. The Congress, both would desire to be confined to the fringes of state politics.

 

West Bengal is witnessing a churning something that would determine CM Mamta’s fate in the next year’s elections. BJP had captured around 16% vote in 1991 but then it lost its way and it was only in 2014 that it began reattempting to conquer fortress Bengal. Of course, a discussion on Bengal needs an elaborate discussion. Likewise Kerala remains a final frontier. The dynamics of Kerala are very different and need a separate treatment that is not possible in the current piece. Karnataka was won due to multiple factors, inherent RSS base, latent support to Hindu cause, hard work by regional leaders like BSY, Anantha Kumar among others, co-opting of many a leader from the other regional or national parties to strengthen the local base, Karnataka’s tendency to vote towards national parties all made it possible for the party to make significant headway into the state.

 

BJP had tasted success in 1991 elections in Andhra winning a Lok Sabha seat. In 1998, the party won four seats and around 20% of the vote. Yet the short term trade offs of securing TDP support to the central government made it sacrifice Andhra in many ways. The TDP opposition to separate Telangana cost BJP even bigger in 2004 elections. BJP made some significant headway in 2019 Lok Sabha elections in Telangana but the current parliamentary legislative business makes its necessary to secure KCR support. Hence BJP might be soft on him. Moreover there are no immediate elections in the offing. Any activity is likely to start only at end ’22. Something similar might happen in Andhra too. Currently all parties in the state are conveying friendly postures to the BJP which makes it relatively easier for the party to frame its strategies. Yet in all probability, BJP will seek to make headway in the 2024 election cycle in these twin states.

 

BJP needs to bring in political leaders who command some base at the grassroots in Tamil Nadu. They need leaders or workers who mobilize booth level workers. Unless the party has presence in the booths across all constituencies, it is difficult to penetrate the state. The social media might be betting on IPS officer Annamalai who has joined the party recently, but he is unlikely to gain any traction beyond some attention and at a lesser level interest. It needs to poach big to make any headway. However, Tamil Nadu analysis too requires a separate engagement.

 

The piece is more a bird’s eye overview on the possible strategies by the BJP to make headway into the southern and eastern states. North East is a region where they are already in power directly or as part of coalition. Each state is unique in its own way and needs detailed engagement at length in the near future.

 

 

 

 

 

 

 

 

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