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

Farm Protests, Tractor March and 1982 Asiad Disruption

 

It is apparent that the talks between the government and the protesting farmers have broken down with no end to the deadlock in sight. The farmer groups apparently want a corner solution and seem to be in no mood to settle for any other solution. The government did offer them a sort of face-saver in suggesting a postponement in implementing the laws upto a year or year and half. This was perhaps in view of the upcoming Punjab elections next year and something for the farmers to boast about in those election. Yet as expected the farmer groups have rejected the same. The government would perhaps be anticipating some divisions in the groups over the latest proposals. It is conceivable there would be divisions, but would take time to manifest. The government is perhaps prepared for a long waiting period. Most groups are basically from Punjab with some from Haryana and a sprinkling from other states including Rajasthan and Uttar Pradesh.

 

Meanwhile there is a clamour for a crackdown on the farmer groups. This is something that the farmer groups themselves might be anticipating or hoping for at least. A crackdown would be able to send their constituencies a message that the government is not just anti-farmer but undemocratic and allows no space for dissent. They want sympathy from the crowd especially the international constituency, apart from the judiciary at different levels. Given the access to funds they possess, they feel they can sustain the agitation for some more time. Some of them are perhaps hoping a repeat of 2011 Ram Lila agitation which saw the undoing of the UPA-II. While these are perhaps hopes, such a thing repeating is unlikely to happen. Yet in another provocative measure, the groups have called for a march of tractors of Republic Day. Their aim ostensibly is to throw the functions into chaos, create conditions for violence, make the police and security forces attack the farmers, might lead to loss of life, but to the leaders, it would be huge brownie point that they feel would lead to the beginning of the downfall of the Modi government. While their lawyers have assured of peaceful march, there would be enough scope for provocation. Given the media support they have both domestic and abroad, they know, the possibility of the blame for violence being laid on the steps of the government would high. The government therefore would have to be acting with hard restraint.

 

While the farmer groups have indicated a march on Ring Road, it would take a slightest deviation to enter the city and throw the celebrations in chaos. Given their conduct in recent times and the provocative speeches being made including invocation of Khalistani spirit so as to speak, trust would have to be minimal. The Supreme Court while conveniently staying the legislation, has thrown the ball in the court of the police with respect to allowing or otherwise of the January 26 tractor march. There would of course be lot of backchannel negotiations that might happen and everything might indeed pass off peacefully, yet the presence of naxal leftist and Khalistani elements make one suspect the possible worst to happen. It is in this context, certain past precedents would be worth visiting. The agenda of the farmer groups or at least those masquerading as farmer groups is very evident. They want to create chaos in the name of perceived injustice. This in itself is not unusual given such precedents happening in the early 1980s that eventually led to the Operation BlueStar and its aftermath. The Sikh groups in Punjab command support of clergy and the role of clergy in influencing the people is very high. To a substantial extent, it is due to control of the clergy and social and religious life of the Sikhs something similar to Abrahamic religions. Use of muscle power to browbeat possible opponents is not something new. The strategy would be to provoke the police and security forces. This was precisely what happened in1982, one of the lead causes for inflaming of tensions in Punjab.

 

As the tensions in Punjab increased in 1982, Akali leader Harchand Singh Longowal called for disruption of the Asian Games scheduled in Delhi from November 19 of that year. It was the first time since 1951 that a major sporting event was happening in Delhi and no doubt had attracted a lot of attention and interest. People across the country were planning to come to Delhi to witness the Games. It was also the first test for Rajiv Gandhi, a newbie into politics. He had entered into politics in circumstances that arose post the death of his younger brother Sanjay. Therefore, it was evident that the government would go all out in ensuring the Games were a resounding success. Indira Gandhi adopted a two-pronged approach to the Games. While she negotiated with the Akalis, on the other hand she decided to crack down on Sikh visitors to Delhi. She managed to hold on the Akalis till a day before the Games when the talks broke down. In fact, the Akalis were led to believe their demands had been accepted but apparently under the pressure of the Chief Ministers of Haryana and Rajasthan, Indira Gandhi backed out. While she was able to save the Games, which went on peacefully, the costs were very high. The roads to Delhi from Punjab passed through Haryana. The visitors from Punjab were harassed routinely in the name of security check throughout the state of Haryana. The stories of these harassment that went back to Punjab inflamed the passions further. In fact, many ex-servicemen joined the Bhindranwale after listening to these stories of harassment. Those harassed included decorated veterans like ACM Arjan Singh (Retd.). Lt. Gen JS Aurora (Retd.), Amarjeet Kaur,MP among others.

 

Today, to many of those behind these protests, they feel conditions are similar. There is a government in Haryana that they believe would go after the protestors. Bhajan Lal’s policemen rustic and notorious for strong arm tactics were employed in full flow. The current round of agitating leaders too expect the same. The stronger the government would come on them, they feel would be advantageous. So far, the government has managed restraint. The normal tactics used to handle such protests do not work against the Punjabi agitators given the past experience whether it was jail-bharo in 1983 or the Punjabi Subah movement in the 1950s or even the anti-Emergency protests in 1975. Therefore, it would be test of nerves and muscles on the part of the government to tactfully handle the current agitation and allow it wear off. At the moment, its only time that would tell how things would move in the future.

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