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

the Great Indian Vaccine Drive

 

India has begun the vaccination drive against the Chinese virus induced COVID-19 pandemic. Given the population size of nearly 1.4 billion, it would perhaps be the largest vaccination drive ever undertaken. The fact that it has to be undertaken in a very short time say about less than a year, the ambitions would be sheer audacity given the logistics involved in such a mammoth effort. It is not just about production of vaccines, but going beyond into the quality control, the transport from the plants to the different storage centres further to be distributed to the states and the districts and then to the vaccination centres. To add, the supply must be continuous with little disruption. The conditions for transporting the vaccines would have to be adhered to. Furthermore, the preparations at the each of the centres in terms of administering the vaccine apart from training the vaccinators itself would be daunting. There is furthermore need to coordinate with the people in fixing their appointments and ensuring the people do keep their appointments with the centre. Managing and tracking the delivery of vaccine along with it being administered is a challenge that not many would accept it to be less difficult.

 

When one observes the preliminary experiences of other countries, it is not easy to run a programme on such a scale. Even the mighty US and UK are struggling to maintain decent levels of vaccination on a daily basis. To add, the current vaccines are to be administered in two doses separated by 28 days. This puts additional pressure. In the 28 day period of second dosage, either the new first doses have to be stopped or alternatively, a fresh vaccinator team has to be prepared of administering first doses. The production levels of the vaccine manufacturers must match the rate of administering the vaccine both from first and second dosages. Apart from Israel, no country has been able to vaccinate double digital percentage of population so far. It is a tribute to the Israeli innovation, resilience and capabilities that they have been able to vaccinate more than a fifth of its population. UAE has barely touched double digits in terms of population percentage. Notwithstanding the small size of Israel, it’s performance stands humongous relative to similarly populated countries including UAE, Bahrain, Singapore or New Zealand.

 

The Indian vaccine programme might have begun few days late. In contrast to many others including the United States which began the drive within 48 hours of the approval from the regulators, India have taken nearly two weeks to begin the programme. The delay might or might not prove to be costly but in the context of the public health, the swiftness in which the vaccine drive begins and reaches its target is critical. Israel apparently paid a premium to Pfizer to get deliveries ahead of schedule. India too needs to coax its vaccine makers to produce higher volumes, ahead of the schedule. In fact, all over the world, hardly less than a handful of vaccines exist. They further are constrained by production limits, to a substantial extent by the reluctance of the producers to license to other parties in different parts of the world. Pfizer for instance would produce and export from US than sign licensing agreements with other countries to speed up the production. The emphasis on stringent enforcement of intellectual property rights (IPRs), refusal to grant exemptions on IPRs even in critical substances, the emphasis on nationalism resulting in vaccines for their domestic countries first, all could distort the vaccine allocation and delivery in the first few months of the administration. This might prove to be critical in the societal battle against the Chinese virus.

 

To achieve a significant success, India needs to administer nearly 70% of its population by this year end. Given this number would run close to one billion, the challenge is not easy. In fact, calling it a difficult challenge itself is an understatement. If the drive goes slowly, there is a possibility that virus might develop resistance to the vaccine. While the scenario is unlikely, it cannot be ruled out. While other countries could target even a few hundred thousand per day and complete their drive within months, India’s initial priority vaccine phase itself would amount to around 300 million people. In fact, the health care workers along with armed forces and paramilitary and police personnel combined with the essential municipal services, the number itself comes to around 30 million. Therefore, the daily vaccine target must exceed five million fresh doses per day notwithstanding the second doses that might have to be administered 28 days from now. This would call for setting up nearly twenty five thousand centres with each centre giving around four hundred to five hundred vaccines per day including those receiving the second dose. It must be recognized that the vaccine delivery must be 24*7 job with centres functioning through the clock. The vaccines must become available in the market on demand. For those willing to take a jab by paying a price, they should be allowed to do so rather than make them wait in a government queue. There is no reason why the digital process using Co-Win app along with Aadhar authentication rounded up by a QR vaccine certificate cannot be linked to the private players delivering the vaccine.

 

The battle against COVID-19 has been a long drawn out one. It is just the beginning of the end. The endgame too is likely to be long before India vaccinates a critical mass needed to achieve herd immunity. This of course is contingent on new mutations that virus might metamorphoses into. The task needs rapid execution at a very high scale. Anything lacklustre would invite serious issues. The Modi government has handled the pandemic fairly well. To the Western world, India was expected to be a basket case of all what has gone wrong. They anticipated that India would lose in millions especially given what happened in the Spanish flu a hundred years ago. The current scene roughly 11 months since the discovery of first case in India has been very optimistic. India has managed to avoid the worse in the last year. It is expected given the current trends to better its performance. The economy too has escaped the worst so is the society. This despite the sheer population, the absence of social distancing, the routine violation of mask norms, and the Indian caseload has remained fairly low relative to the more advanced countries. India has exported lot of pharmaceutical products as with the healthcare accessories and will soon begin exporting vaccines too. There continue to remain sceptics but the overall performance has something to be appreciable about. Without doubt, Modi has consolidated his leadership. Yet there is lot of time before the beginning of the endgame and the final victory. It is where PM Modi would face even tougher task to carve out his legacy. All his actions might be undone, if the vaccine programme suffers some kind of slack. PM Modi has been known for execution at scale and this is perhaps his biggest challenge. How he emerges out of the same will determine his place in history.

 

 

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