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

US Interventions in Foreign Countries

 

Russia has been accused of interfering with the US elections and engineering cyber-attacks on the US systems. This was pronounced in terms of alleged Russian interference to turn the mandate in favor of Donald Trump in 2016. There were constant accusations within the US, within its intelligence community, its administration, security apparatus, the Congress about the extent of Russian role and the internal saboteurs who seemed to have helped Russia for their own ends. The US has been obsessed with Soviet Union and later Russia since the Second World War. Its relationship with China was primarily a function of containing the Soviet Union after their famous split of 1968. In their pursuit to contain the Russian influence, they turned a blind eye to Chinese expansionism. In the current geopolitical terrain, Russia is fast emerging as a Chinese vassal rather than an independent superpower it once used to boast of. Yet rather than seeking to co-opt Russia in the larger battles against China, US has continued to remain obsessed with the Cold War thinking.

 

Thus, there were no surprises when the meeting between President Biden and President Putin in Geneva, their first produced greater tensions rather than heartwarming gestures. Maybe it is do with the Democrats unable to come to terms with their defeat in 2016 but the influence on the foreign policy might prove counterproductive. News reports suggest that President Biden being quoted as stating the impact of alleged Russian interference in the US was similar to if US were to have intervened in various degrees in different countries. There are numerous rumors with some evidence that President Biden suffers from memory issues. This statement perhaps stands as a testimony to the same. One does not know if it had to do with memory lapses to President Biden or was it a naïve statement or perhaps it was made in sincere intention but the very fact that statement was made reflects the death of irony, if there were to exist one.

 

The US perhaps has a history of interventions unprecedented in human history. Rarely has a country intervened to such an extent as US has done not just in the Cold War but through its existence. There are no doubt instances where US refused to intervene something Biden seems to imply. The one instance that could be cited is the genocide in East Pakistan in 1970-71 where it backed the occupational West Pakistani forces. The fact that US refuses to recognize the genocide illustrates a dark chapter in its history. US historically did not intervene outside the American continent barring exceptions until the Second World War. It did intervene in World War I but went back into isolation as manifested in its decision to keep away from the League of Nations. It had its Munroe Doctrine where it refused to allow other players to intervene in its backyard the American continent. For all that Biden poses, the list of US interventions are endless.

 

There was the invasion of Grenada in 1983 and the invasion of Panama in 1989. There was active backing to the militias in Nicaragua as in Honduras. The CIA involvement to assist United Fruit Company to depose the rulers in Guatemala is well known. US has intervened often in Ecuador as also in Bolivia something reflected in removal of Evo Morales. It’s orchestration of the coup in Chile to overthrow Allende is something that is defined as the bottom point at least to the critics of the US policy. In 1963, there was the infamous Bay of Pigs invasion. In response to challenge from Castro who had overthrown the US backed Batista regime, US sent half trained forces to invade Cuba through marine landings at Bay of pigs where they suffered a humiliating retreat. US backed coups were very common through the American continent south of the US. There perhaps exists hardly any country in the Latin American belt that has not suffered the US intervention directly or otherwise. It might be Argentina or Uruguay or Colombia or any other Latin American country that has not seen US backed regimes overthrowing some or other regime. US has historically not intervened in Africa but their implicit backing for certain regimes is evident.

 

There allegedly exists an US hand in Indonesia when Suharto overthrew Sukarno. There have been US interventions in the Philippines but the one which is conceivably most shameful was in Vietnam. In response to the alleged danger of Communist spread in South East Asia, US sent its troops which waged a battle for nearly ten years before having to withdraw in humiliating circumstances. It was by far the worst US defeat in recent history. The only other country that seemed to see an US defeat is Afghanistan as US prepare to pull out its troops from the country. Not too long ago, US had invaded Iraq ostensibly on the grounds of producing weapons of mass destruction evidence of which sketchy at best. In India, through the decades after independence at least till the late 1990s, it was common to accuse CIA of having a hand in some or the other incident in India. The famous CIA hand was used by Indira Gandhi to strike back at the opposition and in fact arresting them during Emergency.

 

Thus the US interventions or non-interventions have been the function of the nature of the regime or the nature of the regime change. When it has suited US, they have steadfastly refused to intervene like in East Pakistan whereas they have intervened on the slightest pretext in many a country from Vietnam to Grenada to Iraq and what not. In the Cold War it was not unusual for the US to use radio broadcasts into the East European Iron Curtain to motivate the natives to revolt against the Communist regime. Therefore, while advising Russia, it would have been pertinent for the US President to have remembered bit of history. The instances that have been cited above are merely recounting those rather than delving into the details and the consequences these interventions brought about in those countries. Either President Biden suffers from memory loss or he wilfully believes that US has been non-interventionist throughout its history.

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