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Showing posts with the label 1962 Indo-China War

Decision Making as Output and Bounded Rationality

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  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
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Nehru and Buffer State Thinking

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  Former President Pranab Mukherjee seems to have stirred a hornet’s nest when in his posthumous book “My Presidential Years” apparently has made a reference to Prime Minister Nehru rejecting an offer from Nepali king to merge his state with India. This apparently happened during the restoration of King Tribhuvan while ousting the Ranas. The story has been floating around for decades, of course with semi-authenticity but with Pranab Mukherjee referring to the same in his book has reinforced the authenticity of the offer. It is highly conceivable that Tribhuvan did make an offer and it would not be unusual for Nehru to have rejected the same. Nehru did allow Bhutan and Sikkim to remain independent. In fact, the people in Sikkim wanted to join India, but PM Nehru allowed the monarchy to continue. It was left to his daughter Indira Gandhi as PM to ensure Sikkim acceded to India. It is possible that she would have annexed Nepal and Bhutan too at some point of time had not other domestic fa
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Indo China Standoff and the World War I

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  The war clouds seem to be looming around Ladakh and Arunachal Pradesh. A two front war too cannot be ruled out implying the war might expand to Jammu and Kashmir and the Western states. It is not discounting the possibility of war around Himachal Pradesh, Uttarakhand and Sikkim. China seems to be belligerent and the recent setbacks seem to harden its stand. Any backing out would be setback for President Xi himself. It is unlikely they are going back to the 1993 agreement and the subsequent ones. Perhaps too them, it seems a sort of prestige to salvage their setbacks from Galwan till Pangong. India perhaps at this moment has little option but to confront the Chinese. The Indians are demonstrating patience is some indicator to the world that India does not want aggressive posture or solution to the problem but desire a genuine peace. Having demonstrated that, India seems reconciled to the war. With the Chinese virus raging around in the country, it would be a tough task to face the Chi
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