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

Quad and India's Alliance Connunrdum

 

One happened to see an interesting article in the Indian Express by veteran strategic affairs expert C. Raja Mohan. The article is available here. The article highlights the Indian confusion over alliances in the backdrop of the meeting of the Quad foreign ministers in Tokyo. Currently, the Quad is more of an informal alliance between US, Japan, India and Australia ostensibly to counter China. Yet so far, there is no indication of it being institutionalised or morphing into some kind of new NATO. Yet, in the Indian strategic affairs community, the Great Indian Alliance Confusion is well underway. Rather than any confusion, it is about the reluctance to accept the changed state of affairs and the need to abandon certain dogmas. The refusal to abandon self-perpetuated dogmas might well prove to be India’s Achilles heel. It would therefore be pertinent to decode Indian foreign policy and its stance over alliance formation with different countries.

 

The problem with India forming alliances with one party or the other has to do with the global background that existed when India became independent in 1947. Alliances are nothing new. They are perhaps as old as the human mankind. At every different level, there are alliances that are formed whether they are long term or contextual. The marital alliances that were formed during the reign of various empires acts as a testimony to the same. Both the epics Ramayana and Mahabharata point towards the alliances that were formed by various rulers at different points of time. Subhash Chandra Bose tying with Imperial Japan to oust the British from India too was an example of an alliance. Yet, the Nehruvian foreign policy evolved in certain circumstances that made the word alliance perhaps unworthy especially if it involved anything with the West.

 

US, Britain, French government in exile and the Soviet Union formed an alliance that popularly made them being termed Allies in the Second World War to defeat the Axis powers of Germany, Japan and Italy. Yet this alliance was short lived to the context of the war and defeat of the Axis. The moment Axis was defeated, a new Cold War emerged. In fact, the Cold War had begun evolving even during the Great War. While the Soviets believed their system was superior, the Americans believed that their system was superior in all aspects. The race was not merely in terms of military superiority but spilled over to the technology race as exemplified in the race to the space, to the moon, to discoveries in scientific world. The race spilled over the farms with competition for producing, distributing and consuming of food grains. It spilled over into the race for political systems, economic systems, social systems. In this race for superiority of ideology, the countries were expected to tie up with either of them. The context provided the framework for the rise of NATO, Warsaw Pact, European Community, COMECON, CENTO, SEATO, ANZUS among many others. It was in this global backdrop that India decided not to opt for either alliances and instead stay non-aligned. Non alignment was perhaps a mirage yet India was engaged in sort of balancing activity. The non-alignment turned into a Non-Aligned Movement and thus a lobby or an alliance of sorts is a story in itself. Yet while seeking to maintain equi-distance from both US and Soviet Union India could not shake off alliance. The Bandung conference, a forerunner to NAM itself was an attempt to create an alliance of newly independent countries in Asia-Pacific and Africa. In 1962, facing the humiliating defeat at the hands of China, India turned to US for help which it did come but for varying reasons. Through the first two decades of independence, India begged US and the West for food, in some ways cementing a relationship of patron and patronized. In the run up to the 1971 War, India entered into an treaty with the Soviet Union that helped it cushion the Western pressure in the 1971 war. India’s reaction to Vietnam was more of an implicit support to the Soviet stand, something seen before in Hungary 1956, Czechoslovakia in 1968 and later Afghanistan in 1980.

 

India’s perceived softness towards the Soviet Union often was projected in the West as being an unreliable ally and thus the Western investment in Pakistan. In India, the colonial hangover continued to last and thus the West was by and large painted as imperialist, colonial powers that have to be confronted with. India’s softness towards France which too was no less an empire builder was apparently due to the frequent antagonism between Britain and France. It was dictum of other’s enemy being a friend. Any move towards a détente with the US was seen as a sell-out and perhaps politically costly in the Indian milieu. Therefore, India’s approach towards US for a greater engagement in the recent past have been met with mixed responses.

 

India has been clear of not having any formal alliance with the US but there have been many steps that point towards operationalization of alliances at a tactical or an operational level. Similar measures have been taken with Japan, Australia and other countries. India’s current approach seems to be pointing towards building a coalition without sacrifice of any strategic independence against China. It is interesting while India has been taking steps to strengthen Quad or JAI with US and Japan, India has also been actively involved in BRICS or RIC or SCO where Russia and China are key players. In seeking to balance with multiple powers, India does not want to break the relationships with other countries. The new jargon seems to be multi-alignment. India wants to the keep bridges open with China too. Yet India must realise that China will not accommodate India at any level except as its subsidiary. China follows the paradigm of no two lions in a single jungle despite the possibility of co-existence. In such a scenario, India will be pushed down. The current round of stand-off is essentially seeking to reiterate the above stand. Similar attempts are being against Japan too. Therefore India must plan for the alliances to counter China and take an aggressive stance shedding all inhibitions. The more sooner India shed its inhibitions and take an outright public stance against China abandoning the Nehruvian ambivalence in some ways will be better for India.

 

 

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