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

IS India the Vaccine Hold Out?

 

The West can never countenance India doing something good. They try to dig out a dark line in the brightest of the skies. They had colonized India. They cannot fathom, that a country that was long their vassal could stand up on its feet but more importantly could take the lead in many different global dimensions. This was despite numerous hurdles that were placed in its journey. This treatment is never applied to China or Japan for that matter. India is something wrong unless it follows the Western dictums in every domain. The tragedy is not the Western treatment of India but the very fact that Indians themselves diss themselves. There is vast section that thrives on finding rot in the Indian society, economy, business and what not. They love to run down Indian achievements.

 

In the Chinese pandemic, it is India which has emerged as the pharmacy of the world. In the initial days, it was India which led the world in exporting masks, protection equipment, HCQ tablets, paracetamols and many other medicines to both developed and developing world. While China has sought to leverage its geopolitical hold, India has been considerate and looked at humanity first. In the context of vaccines, it is India which is leading the battle against the virus. India has exported vaccine to nearly 100 countries and more are in the pipeline. It is no secret that China has used its power to get rid of unfavorable people in positions in countries that need their vaccine. India has attached no such riders. India has exported more than half of its production, something more than it has used for its domestic priorities. It must be worth noting that India has a population of nearly 140 crores and it is not easy to vaccinate in a short period of time.

 

In comparison, while the US has produced nearly 16 crores of vaccines, they have not exported a single piece of their arsenal. In fact, the story of Britain too is the same. Incidentally, the European Union is ending up exporting its production to Britain thanks to contracts with Astra Zeneca. It is partly responsible for the EU vaccine campaign to be in disarray. As one surveys the vaccine scene globally, it is evident that it is India that has taken upon itself to supply vaccines to the rest of the world. There is no doubt, that given the sheer population that needs to be covered, it is virtually impossible to meet the global demand simultaneously. Indian pharmaceutical industry production capacity is something that is unmatched anywhere in the world. The quantum of production is quite high. India has been doing a zealous service irrespective of the motivations.

 

Yet the Western outlets like the Guardian seem find some fault or the other with India. In an article in the Guardian, the authors seem to put all the blame on India for not supply vaccines to other countries. The article seems to posit that India is the fall guy when it comes to shortage of global vaccines. The reason is India is using the supplies of Serum to meet its domestic needs. Apparently Serum Institute is being forced by the government to prioritize for domestic needs. The authors argue that Serum Institute was essentially for producing vaccines to GAVI alliance, something developed and nurtured by Bill Gates Foundation. There is an element of irony in this. The US is not ready to export neither is Britain. EU is hoarding vaccines. They have no cross to wear since those companies apparently did not promise to deliver vaccines for poor countries. If Pfizer or Moderna or any other firm said we are not going to produce for poor countries, they are not at fault.

 

The primary reason lies in the hatred for Narendra Modi government. The Western think tank culture especially the liberal variety cannot digest that Modi government is distributing vaccines to the rest of the world. Therefore, they have reduced it to a mere photo-op. They argue that Modi government cannot do anything concrete in global interest. They believe that it is only for the so called Hindu elite who in the words of these liberals are racists. Anything that India does is to be vilified. The problem in the global vaccine campaign is the refusal of the pharma majors like Pfizer or Moderna to increase the production. They have curtailed the production and are holding the world into ransom. The political maneuvers and the accompanied regulatory capture are too well known. The US and the EU have consistently opposed the waiver of IP requirements to expand the production. Yet these all are something perhaps noble in the words of the liberal commentators. Only India seems to be the problem area.

 

 The article seems to suggest a hold out problem by India. They seem to suggest that the responsibility of the health of the developing world lies with India. There is no doubt on the same and India has lived up to its standards consistently. Even in the current scenario, India has been sending vaccines in whatever means it can to the rest of the world. There is a strong political pressure on PM Modi to expand the vaccine campaign in India. He has resisted the forces calling for vaccine nationalism and continued to help countries at least vaccinate their health care and other frontline workers. There is something that the world is supposed to express gratitude for. Yet to the liberals, India should have the last charge on the vaccines. It doesn’t matter what the developed world does, but India should do what they want it to do. This guilt tripping is the biggest barrier to entry in the global power calculus. It is not about power, it is about creating a barrier wherein India cannot exercise its national interests without feeling a moral guilt. This was something practiced to core during Nehruvian days and continue to be pressurized even today. It must be said that PM Modi must stand up to the pressure and not let go Indian interest held hostage by moral guilt tripping.

 

(The article is available here)

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