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

Decoding Western Thinking on Indian Democratic Standards

 

Sometime back in the Rajya Sabha, a MP from AAP raised the issue of a Swedish think tank downgrading the status of Indian democracy. The Vice President who was in the Chair was contemptuous and did not allow any further comments or references to the topic. Now that the V-Dem has released its report calling India an ‘elected autocracy’ for whatever that means. A couple of weeks back, Freedom House a think tank funded by the US government downgraded Indian democracy from free to ‘partly free’. The discussions over these reports seem to be expected lines and have provided enough fodder to all suiting their political preferences.  To the critics, the report seem to reinforce their perception that Modi is a dictator for whatever that means to them. To the supporters, it is the colored perception of the West that refuses to recognizes the ground realities in India.

 

India is free and well flourishing democracy. The elections have been held at regular intervals. The governments have changed based on election results. There has hardly been an instance of a government digging heels and refusing to hand power to the successor regime. The only instance of India killing democracy was in 1975 when Indira Gandhi refused to resign following the adverse High Court judgment and instead imposed Emergency. It is a different matter that pressure worked to conduct elections albeit a year late and the electorate did resoundingly to defeat her. Currently, there is no such indication that India is moving towards authoritarian regime. PM Modi is a democrat by all accounts something vindicated by the numerous media articles and television shows disparaging him. There is no shortage of television commentary or media commentary or even comments on the internet that are critical and sometimes outright contemptuous of Modi. In fact, if there is an attack on the opponents, it is in the states like West Bengal where opposition activists are routinely harassed or in Maharashtra where anyone going against the government are arrested. Incidentally both these states are ruled by opposition parties and get a free pass by the media and liberal commentariat.

 

Therefore, it would appear puzzling why as to the Western think tanks believe India is not a democracy or rather moving away from it. It has to do with perception. For decades, the West has been used to dealing with an ecosystem generally dominated by the acolytes of the Nehru-Gandhi family. They have developed a comfort level. The new establishment is dismantling the Omerta code that have existed for long. India is no longer a country that seemed to be bounded by the moral trap. As a barrier of entry or otherwise, the Western world has sought to categorize the Indian normative policy to be framed in the contours of moralism based on alleged non-violent freedom struggle. The perception has been reinforced over the last seventy five years or so. The politics that has been practiced by the Nehru-Gandhi family adds to this. The Modi government has broken this long standing consensus. Whether it was in Kashmir or Pakistan, they have adopted new approaches not in sync with the Western perception about the Indian policy framework.

 

The reports of the think tanks have their genesis in the Indian internal politics. To the Indian critics of Modi, there is very little they can do to stop his juggernaut. Despite widespread talk about his vulnerability in 2019, Modi not only retained power but increased both his seat share as also the vote share. On the other hand, the Congress is looking directionless and seemingly sinking into a morass. In this context, to the ecosystem that influenced the establishment needs ways to discredit Modi. As highlighted repeatedly in the past posts, the agenda of the liberal ecosystem is not merely about the domestic constituency but the international constituency. They want to position Modi as somebody of an autocrat under whom the democracy is shrinking. They fear that Modi at some point or the other would crack down on the liberal chatterati. This is the time when they would have the West to believe that Modi is not a democrat. In fact, their frustration seems to stem from the fact that Modi is not being provoked nor getting into the trap which they have been creating for years.

 

In the contention of anti-Modi forces, if the West comes to a conclusion that Modi is a dictator, their policies are likely to take a different shift. It might or might not be true. To the Western establishment what would matter is their interests. If they perceive Modi to be in alignment with their interests, they would turn a blind eye even if he were to be a dictator. If Modi is perceived to be something antithetical to their interests, they would demonize Modi. It is not something new but practiced deep in history. Their attempt to create a villain of Indira Gandhi much before 1975 for refusing to toe their line and instead creating a new narrative on Bangladesh is something well known. They have long sought to project India’s excesses or rather alleged ones in Kashmir or Punjab as some serious human rights issues and sought to preach India on multiple forums. Therefore, the current round of their seeking to project India as a step away from dictatorship is not surprising.

 

As illustrated in the past posts, as India seek to reframe its foreign and domestic policy contours away from the conventional established paradigms, these are bound to arise. There is nothing that would make West accept India as their equal. China arose in a different context. China was sought as counterfoil to the Soviet Union in the Cold War and it played along well as long as it needed the West. Unlike India, China did not go through the pretenses on non-alignment and all such. Both had their own self-interests and it worked as it suited both. It’s only in recent years that there is some concern on Chinese rise but China through its money has successfully captured the Western institutions nor it has been bothered by them. At the heart of it, lies the money. Money speaks and speaks of volumes. India neither tried to cultivate the lobbies nor has enough money to challenge the Western hegemony in global discourse. Until India gains in strength, this disparity will continue. At the moment, India should ignore the grandstanding of the West and instead focus on the continued agenda of making India a stronger nation economically, culturally, scientifically, socially and politically.

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