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Showing posts with the label crisis management

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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Migrant Egress, Wuhan Virus and the Indian Shutdown

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The three week shutdown has turned the focus on the hundreds of homeless and daily wage laborers. Many of them have migrated from different parts of the country into the metro cities in search of livelihood. Question marks arise about their sustenance given there is no possibility of work in the next three weeks. There are of course vultures who want to scavenge on the living homeless and daily wagers. There are others who too are concerned about their survival. Some organizations are taking up work to provide free food etc. to these bottom of pyramid group yet in the curfew it would be difficult to reach out the genuine needy. Some want the government to implement a Universal Basic Income (UBI) so as to support these families with some nominal amount. Further many living in slums, tents, pipes, roads etc. it would be seen as an easy prey for the China virus. There are of course some voices that have called for egress of these back into their villages. In fact, one of the key cr
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Jim O'Neill, Coronavirus and Indian Response

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A report in CNBC quotes Chatham House Chair Jim O’Neill praising China for its response to coronavirus. In a disparaging way, he derides Indian approach expressing fears what would have happened had it originated in India. The report is available here .   It is not something new for many Westerners. Their Indophobia or more precisely Hinduphobia makes them inhabit their deluded land of India being haven for snake-charmers and elephants.   They are simply unable to come to terms of India emerging on its own and being power contender. To all the praise Jim O’Neill heaps on China it was China’s initial reaction of denial and secrecy that led to the scaling up of the current round of the epidemic. He seeks to explain the same as dichotomy between the dominance of President Xi and the officials at the state level. The explanation simply doesn’t hold well in the light of what has emerged. The virus was noticed first by doctors in Wuhan. The first Chinese reaction was denial. In fa
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