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    Anticipating the Unintended

    Frameworks, mental models, and fresh perspectives on Indian public policy and politics. This feed is an audio narration by Ad Auris based on the ‘Anticipating the Unintended’ newsletter, a free weekly publication with 8000+ subscribers.

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    Copyright: © Pranay Kotasthane & RSJ

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    Latest Episodes:
    #133 The Centre Cannot Hold 🎧 Jun 27, 2021
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    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. India Policy Watch #1: Satyam Eva Jayate? Insights on burning policy issues in India- RSJWe often talk about truth, disinformation and radically networked societies in this newsletter. Our interest in these issues is often on account of news stories around us. But that’s not all. We find there’s a more fundamental shift on the understanding of truth that’s underway in societies around the world. That is what fascinates us about truth. Now, truth or its nature is the basis of all philosophy from the time Socrates started asking questions of fellow Athenians at the public square many centuries ago. Yet we come back to the question of truth and certainty again and again over the course of our history. Not because attaining the truth is an epistemological necessity for our race. That it might be. Instead understanding the nature of truth is important to control it. And those who control the truth control power. Not only for the present but far into the future. So what’s the point of this random discourse on truth at the start? Truth Is The First CasualtyThere were a few news stories over the past couple of weeks that made me wonder about where we are on truth in India today. First, the kerfuffle between Twitter and the Indian government. A lot of commentary on this topic conflate two issues - one, Twitter not complying (yet) to certain parts of the new IT intermediary guidelines and two, Twitter tagging certain tweets by BJP spokespersons on the Congress ‘toolkit’ case as manipulated media. The first point is of limited interest to me. There are new guidelines and they must be followed if you want to be treated as an intermediary in India. Others have complied and Twitter has been lax. The second point is interesting. Twitter claims it has a global policy on tagging certain tweets as manipulated media and that’s what it followed in the Congress ‘toolkit’ case too. This claim has been attacked by many. Some have questioned Twitter’s commitment to free speech and alleged it suppresses right wing handles more than others. I haven’t seen any credible data to support this so I don’t know. But, more importantly, invoking freedom of speech argument here betrays a poor understanding of the concept. Free speech is a right of the citizens that has to be protected from the state which holds a legitimate monopoly on violence (Weber). Suppression of free speech is an issue only when the state is involved. Private entities don’t have that monopoly on violence. If they suppress free speech on their platform, well, there are other platforms. The other attack on Twitter is more credible. Who is Twitter to arbitrate on truth? How does Twitter know what’s the truth? These questions are closely linked to the other news story about a viral video involving an attack on a Muslim man in Ghaziabad. The UP police filed an FIR against Twitter and Mohammed Zubair among others for creating communal divide and intending to disrupt public peace. Zubair is the co-founder of AltNews, a fake news busting media outlet. Zubair and AltNews had done the forensic work debunking the Congress toolkit document on Twitter. It is possible that work could have been the reason for Twitter to have tagged certain tweets as manipulated. Now AltNews was being accused by the state for spreading fake news. Life has came full circle in two weeks for Zubair. Why has the question of truth become so fraught in our lives? Why are we inundated with versions of truth on social media each with its compelling argument and logic? Have we lost objectivity while looking for balance while reporting on truth? These are tough questions. I have no answers. Easy or otherwise. But since we have come so far with piece, like Crime Master Gogo, we need to go back with some takeaways. Truth And TruthfulnessWe live in times where we are suspicious of every claim of truth. We look for who is making the claim, we investigate it, we check on their politics and we debunk the claim if there’s even a whiff of their allegiance to the other side of the political divide from us. This is now the norm.Of course this has always been the case in politics. Political parties are formed on the basis of the belief among the members that theirs is the right path. That the party knows the truth that will lead the society or the nation to the lofty goals set out in the constitution. Politics has always been about '“our truth” versus “their truth”. It is a contestation on versions of truth.This we lived with. But the problem of our times is how deeply politics has pervaded every sphere. There’s not even a sliver of convergence on truths in any subject these days because politics cannot countenance it. No inch can be yielded to “their truth” anywhere. So, the effort on all sides is to bury the others in an avalanche of lies. The more tenuous your truth, the greater the desire to fight with an arsenal of lies. Bernard Williams, the great analytical British philosopher, wrote about this in his last book, Truth and Truthfulness (2002). For Williams, truth is a cultural value to be defended against the onslaught of lies. The accuracy and the sincerity with which we identify and then speak the truth across all social forms is worthy of a good fight. Else, we lose everything. I have excerpted from the first couple of pages of the book below. Williams had presaged the current times of the widespread suspicion of truth even before the advent of social media: “Two currents of ideas are very prominent in modern thought and culture. On the one hand, there is an intense commitment to truthfulness - or, at any rate, a pervasive suspiciousness, a readiness against being fooled, an eagerness to see through appearances to the real structures and motives that lie behind them. Always familiar in politics, it stretches to historical understanding, to the social sciences, and even to interpretations of discoveries and research in the natural sciences.Together with this demand for truthfulness, however, or (to put it less positively) this reflex against deceptiveness, there is an equally pervasive suspicion about truth itself: whether there is such a thing; if there is, whether it can be more than relative or subjective or something of that kind; altogether, whether we should bother about it, in carrying on our activities or in giving an account of them. These two things, the devotion to truthfulness and the suspicion directed to the idea of truth, are connected to one another. The desire for truthfulness drives a process of criticism which weakens the assurance that there is any secure of unqualifiedly stateable truth. Suspicion fastens, for instance, on history. Accounts which have been offered as telling the truth about the past often turn out to be biased, ideological, or self-serving. But attempts to replace these distortions with “the truth” may once more encounter the same kind of objection, and then the question arises, whether any historical account can aim to be, simply true: whether objective truth, or truth at all, can honestly (or, as we naturally put it, truthfully) be regarded as the aim of our inquiries into the past. Similar arguments, if not quite the same, have run their course in other fields. But if truth cannot be the aim of our inquiries, then it must surely be more honest or truthful to stop pretending that it is, and to accept that.We can see how the demand for truthfulness and the rejection of truth can go together. However, this does not mean that they can happily co-exist or that the situation is stable. If you do not really believe in the existence of truth, what is the passion for truthfulness a passion for? Or - as we might also put it - in pursuing truthfulness, what are you supposedly being true to? This is not an abstract difficulty or just a paradox. It has consequences for real politics, and it signals a danger that our intellectual activities, particularly in the humanities may tear themselves to pieces.…. My question is: how can we address this situation? Can the notions of truth and truthfulness be intellectually stabilised, in such a way that what we understand about truth and our chances of arriving at it can be made to fit with our need for truthfulness? I believe this to be a basic problem for present-day philosophy.” Pluralism, Balance And ObjectivityThe other challenge to truth has come from a total lack of understanding of the concept of value pluralism among the media. The construct, popularised by Isaiah Berlin, allows for two or more incommensurable values to be held at the same time by a polity each of which may be true and still be at odds with one another. For Berlin, these differences are unlike a titanic battle between the right and the wrong; instead they are about accepting contradictions and differences in values which then deliver diversity and strength to a society. The media has distorted the notion of pluralism to some kind of an elusive ‘balance’ in its coverage of any issue. Both sides must be represented is a common refrain. The role of the media is to unearth truth through objectivity. Balance doesn’t help in that. That the earth is round is a truth objectively established. Of course, there are ‘flat earthers’ still who think otherwise. The role of media is not to give air time to both in in the interest of pluralism or balance. That’s lazy journalism and an invitation to untruths of every stripe to be concocted to crowd out the truth. This is what has happened. Social media platforms have accentuated this generation of untruths. Over time these turn into ‘versions of truths’ which get quoted by mainstream media aiming for a balance by presenting both sides of the story. It is a systematic perversion of truth. We All Have Our Truths NowThere’s also the failure of liberalism to defend stoutly the core values it stands for in the past decade. It has been attacked from the outside by those with conventional suspicion of the liberals. But liberal ideas have withered under the attack from within from the supporters of relativism, moral scepticism and extreme identity politics. The reverence of relativism among the liberals has meant there’s no objective truth for them anymore. Everything is true in its context. Therefore, everything is false too. This ambiguity has meant everyone can claim their own truth based on some kind of a lived experience. Nothing is sacred in general anymore because everything can be questioned. Simultaneously, everything is sacred in particular because there’s a never ending contest to be purer than the next person. It is difficult to even define a truth in these circumstances. Forget defending it. This absence of a rigid commitment to an ideology by the liberals would lead to moral panic, anarchy and philistinism as Leo Strauss had warned. This is where we seem to have arrived.Lastly, there’s a vast majority who watch this battle of different versions of truth from the sidelines. They think of themselves as the audience. They aren’t. It is they who are being played in the arena. Yet, often, they know the truth and they see through the game. But they remain onlookers, reluctant to take sides and ever willing to be taken in by what’s unfolding in front of them. When truth is no longer valuable, it is they who end up paying the highest price. Like Ramdhari Singh Dinkar wrote:समर शेष है, नहीं पाप का भागी केवल व्याघ्र,जो तटस्थ हैं, समय लिखेगा उनका भी अपराध।Translation: This war over truth is eternal. Your adversary isn’t alone in the wrong. Those on the sidelines, unwilling to take a stand are culpable too. In time, they will face a reckoning. India Policy Watch #2: When Federating Units are ExtinguishableInsights on burning policy issues in India— Pranay KotasthaneMany reports of restoration of J&K’s statehood came out this week. In what appeared to be a step towards restoration, the PM and HM met leaders of significant political parties of the J&K Union Territory. And so it appears that a former state in the Indian Union — reduced to a UT a couple of years ago — might soon become a state again, albeit a truncated one, and on terms different from the ones before August 2019. Any issue involving J&K is a Pandora’s Box. So, for a moment, keep the particularities of J&K aside and consider this question: what does the Indian government’s flip-flop story tell us about the nature of federalism in India? Before answering this question, let’s take a detour to our western neighbour. As in many other areas, it teaches us what not to do. The One Unit ProgrammeThe four provinces of Pakistan as we know today didn’t exist between 14th October 1955 and 1 July 1970. These provinces, along with erstwhile princely states, were merged together into a single unit: the One Unit called West Pakistan. The primary reason was to create parity between the eastern and western wings of the country. East Bengal was renamed East Pakistan and the whole of its western wing became West Pakistan. Provincial governments of Sindh, NWFP, Balochistan, and West Punjab were dismissed and these units were relegated to being merely divisions of the province of West Pakistan.In 1954, the then Prime Minister of Pakistan, Mohammad Ali Bogra, is believed to have expressed this hope:There will be no Bengalis, no Punjabis, no Sindhis, no Pathans, no Balochis, no Bahawalpuris, no Khairpuris. The disappearance of these groups will strengthen the integrity of Pakistan.We know how that turned out.Now, look at this from a federalism angle. Most federations have a centripetal bias meaning that the union is stronger than the states. But if provincial governments can be dismissed with the ease as it was done in Pakistan, can that system even be called a federal one?Perhaps not. I came across a key differentiation between federalism and decentralisation that sheds some light on this question in A Review of Indian Fiscal Federalism by Dr Govinda Rao:A federal system is the one in which the entire set of powers — legislative, fiscal and regulatory — are divided in the Constitution or conventions between different levels of government. There is a measure of permanency in the assignments and in particular, the powers given to lower level governments cannot be extinguished by higher level governments (Breton, 2000). Thus, checks and balances to safeguard the system is an inherent part of the federal system whereas, decentralisation does not necessarily entail that. In other words, all federal systems are decentralized whereas all decentralized systems are not federal. The Constitution and other institutions set up to ensure checks and balances and safeguard the domains of different levels of government are inherent components of a federal system.Seen from this lens, the Pakistani system was decentralised but not federal.What about the Indian system?Article 3 of the Indian constitutionpermits the Parliament to, by law:(a) form a new State by separation of territory from any State or by uniting two or more States or parts of States or by uniting any territory to a part of any State;(b) increase the area of any State;(c) diminish the area of any State;(d) alter the boundaries of any State;(e) alter the name of any State;At the same time, the ‘basic structure doctrine’ recognises Federalism as one of the basic and hence unalterable components of the Indian constitution. So, in all likelihood, if the Indian union were to embark on a One-Unit or Four-Units programme of its own, the Supreme Court would come in its way. In other words, the ‘measure of permanency of the Indian federation’ rests on the role of the judiciary.What about the J&K Reorganisation Act?Now, we return to the central question. Does J&…

    Full show notes at the publisher

    #132 A (Non) Manchurian Candidate 🎧 Jun 20, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. Global Policy Watch: G7@Cornwall: Return Of A Rules-Based International Order? Bringing an Indian perspective to burning global issues- RSJA key geopolitical question to ask as most of the world gets back to normalcy following the pandemic is - what kind of a world will we be living in?I was expecting the G7 meeting held in Cornwall last week to help with an answer. It didn’t entirely. But it did help in framing the key questions that will engage commentators discussing about the world order this decade. The rhetoric at the end of the summit was summed by Boris Johnson: “the West is back”. Johnson and Biden repeatedly made the point about the summit representing the coming together of the great democracies of the world. Others parroted the same line. Even PM Modi speaking on the final day as part of the outreach programme positioned India as a natural ally of G7 in its resolve to fight the challenges arising out of authoritarianism, terrorism and disinformation. Democracies V Autocracies Now?The need to counter the ideological and economic challenge of China has bipartisan support now in Washington. Naturally, Canada, UK and Japan are in the same boat. The summit succeeded in making the somewhat reluctant Germany, France and Italy come around to the same view. This looks like an attempt to roll back the Cold War years. But like we have written in the past, China is a very different threat from the erstwhile USSR. In fact, it is USSR on steroids. So making the threat of China into the familiar construct of Cold War that you are comfortable dealing with is like searching for your lost keys under a lamppost because there’s light under it. It will be easy to search but you won’t necessarily find the keys. The other problem for G7 is how to treat Russia. With China the two strands of a superpower contest and the mortal combat with an illiberal regime that won’t reform as was expected, come together. So it offers ideological clarity. Russia isn’t an economic superpower and its political strength is restricted to its backyard. But it ticks all the boxes of a rogue, authoritarian regime - stifling dissent, encouraging crony capitalism, launching cyber attacks against other nations and meddling in their elections. Does the G7 slot Russia into the same ideological enemy category as China and push it further into its arms? Then we have a very different Cold War on our hands. Or, does it give Russian illiberal tendencies a free pass to keep it neutral and counter the threat of China? The Putin-Biden summit that followed the G7 meet seems to suggest that’s the likely course of action. But if you do that, where is the ideological glue of ‘great liberal democracies’ coming together? What stops other democracies (Brazil, Turkey, India and many more) to go down authoritarian route knowing the ideology is a sham? Marshalling A New Plan?The other question is how committed are the G7 to back their return to relevance with financial support, commitment to free trade and moral leadership during the next crisis? The evidence during the pandemic wasn’t flattering. It was everyone to themselves. The easy thing is to blame it on Trump but the hesitancy of Biden administration during early days to share its vaccine stockpile suggests ‘America First’ won’t just disappear after Trump. The summit threw up two responses to allay concerns on this. One, the promise by G7 to provide for more than one billion vaccine doses to the developing world. This was a late but welcome step to regain a semblance of moral authority. But one billion isn’t enough to inoculate the poorest in the world. It didn’t go far enough. Two, the G7 decided to counter China’s Belt-and-Road initiative (BRI) with its own plan to lend billions of dollars in financing infrastructure in developing nations. As the New York Times reported:The plan described by the White House appeared to stitch together existing projects in the United States, Europe and Japan, along with an encouragement of private financing. A fact sheet distributed to reporters gave it a name, “Build Back Better for the World,” with roots in Mr. Biden’s campaign theme — shortened to B3W, a play on China’s BRI.It emphasizes the environment, anti-corruption efforts, the free flow of information and financing terms that would allow developing countries to avoid taking on excessive debt. One of the criticisms of Belt and Road is that it leaves the nations that sign on dependent on China, giving Beijing too much leverage over them.There are a few problems with this plan. One, it is not clear how much of a success BRI has been for China. The programme has been beset with inflated costs and accusations of debt trap by countries borrowing from it. China seems to have gone tepid on it too. So, why copy a plan that failed for China? Two, Italy is already a member of the BRI and France and Germany don’t share the Biden’s administration conviction in taking on China economically. There are huge investments and trade deals hanging in balance there. This isn’t as tight a house as it appeared from the outside during the summit. Three, the G7 equivalent of BRI will need capital contributions from all the members who aren’t themselves in the best fiscal state at this moment. And we aren’t even counting the unresolved Brexit issues (including the Northern Ireland protocol) between UK and EU which threatened to sour the summit. The US treasury seems ready to sign ever increasing checks for domestic stimulus, infrastructure and green deal. Now they will have to fund this too. The icecreams cannot keep coming out of the truck indefinitely. Also, the G7’s insistence of democracy and human rights record will make many developing countries continue to look at the guilt-free Chinese loans. And let’s admit it, there are more of those regimes than others. Four, the G7 will have to respond to the popular opinion in their own backyards and it is difficult to see how over the next decade free trade, multilateral funding and supporting infrastructure around the world will be politically rewarding. A few regime changes among the G7 nations and this plan will come unstuck. China meanwhile has no such problems. Xi isn’t going anywhere soon. Nor is Putin.Saving Humanity?The final question is how will the G7 respond to future global crises after learning the lessons from this pandemic? The list of existential threats to the world isn’t short today with climate change at the van. The summit picked up climate change with a renewed pledge to raise $100bn a year through till 2025 to help developing countries cut emissions and move away from coal. There are two problems here. First, this isn’t enough for poorer nations to stick to their climate goal commitments. It will be interesting to see how this pans out with the UN climate summit that’s coming up in Glasgow this November (also known as COP 26). The lack of details in the climate change plan - “green revolution” - that would limit the rise in global temperatures to 1.5Cand reach net-zero Carbon emissions by 2050 makes the whole thing sound like the many empty pronouncements of the past. Second, it is difficult to address climate change without bringing China, Russia and other large populous developing nations (Brazil, India, Indonesia) into the mix. Solving global existential threats require what Richard Haas and Charles Kupchan call the ‘concert of powers’ approach. But how do you do that if you want to frame China and Russia as ideological foes in the new Cold War?About IndiaOn the balance, the two positives from the G7 summit were quite clear. America led by Biden will not go back to lurking in the backstage of global geopolitics. And, China won’t get an easy pass from here on. Its days of running with the hare and hunting with the hound are over. But beyond that it is all fuzzy.So, what about India in all of these? India cannot be in the China camp given all the history between them. Russia is a time-tested friend that it cannot dump. India also knows its value to the liberal, democratic front as an ally. If you look closely, it has been dealt a good hand. It can use this confluence of factors to its advantage. Unless, of course, it scores self-goals on liberty and democracy at home and queers the pitch. That can be a real scenario. Maybe PM Modi’s address where he called India a natural ally in defending shared values of liberty, freedom of expression and democracy was meant more for his domestic audience. Not(PolicyWTF): When Two Taxes MeetThis section looks at egregious public policies. Policies that make you go: WTF, Did that really happen?— Pranay KotasthaneReaders of this newsletter will know that I seldom have good things to say about India’s taxation policies. But today is an exception.Once in a while, even taxes can pleasantly surprise. Even as people are wrestling with the new income tax filing portal, net direct tax collections have doubled over the last year’s numbers. Of which, advance taxes alone have grown by 146 percent. Advance taxes are taxes spread over four quarters in place of the fiscal year-end. This measure is indicative of economic sentiment as higher advance tax collection implies that business activity and payment settlements are happening smoothly. What caught my attention was this statement in Business Standard:“Tax officials have attributed it partly to payments from the Vivad se Vishwas Direct Tax Dispute Resolution Scheme and lower issuance of refunds, while others have said it is owing to increased compliance and enforcement due to the sharing of the goods and services tax data with the Central Board of Direct Taxes.”In essence, one of the explanations is that even though GST collections by themselves aren’t spectacular, the trail that the system leaves can be used to identify direct tax evasions as well. There’s precedence to better data resulting in increased direct tax collections. Until the turn of the century, many companies were deducting tax at source (TDS) before paying incomes to their employees but this money wasn’t reaching the government. There was no data to compare the TDS collected by a company with the TDS reported by all its employees. The result: tax evasion. Less than 25 percent of those supposed to deduct tax at source were submitting returns. That changed in 2003-04 with the introduction of the Tax Information Network. Dr Govinda Rao explains this breakthrough here:“Responding to the comment by the Comptroller and Auditor General of India that a large proportion of entities which were required to deduct the tax at source (TDS), simply did not remit the money to the income tax department, Vijay Kelkar who was the then adviser to the finance minister entrusted the task of TIN to NSDL which put together the system of monitoring the TDS payments.The result was the sharp increase in the ratio of Centre’s direct tax revenue to GDP from 3.9% in 2003-04 to 6.4% in 2007-08, registering an average growth of 31% per year.” GST offered a similar hope. The logic is as follows. A substantial portion of income tax returns (nearly 40 percent in 2017-18) report business income. Comparing this reported business income with the GST trail of the business can expose tax evasion. The input tax credit mechanism of the GST aligns the incentives of sellers and customers to report their revenues accurately. In July last year, the indirect tax board (which administers GST collection) and the direct tax board (which administers income and corporate tax collections) signed an MoU to exchange data with each other. The increase in direct tax collections this year is perhaps, in part, due to better triangulation of tax information. The exact impact is tough to gauge but if the trend in direct tax collection remains upbeat for consecutive years, we can isolate the effect to this beautiful meeting of the taxes. Can’t believe I wrote that! Matsyanyaaya: Everyone Wants to DARPABig fish eating small fish = Foreign Policy in action— Pranay Kotasthane I posted this writeup first on Technopolitik, a new fortnightly newsletter launched by my colleagues at the High Tech Geopolitics programme. If you are interested in themes at the intersection of technology and international relations from an Indian national interest perspective, do subscribe. Back to the story after that subtle plug. Japan. The UK. Germany. Even the US. These countries are now attempting their own versions of the original Defence Advanced Research Projects Agency (DARPA). The success of DARPA’s 2013 grant to Moderna for using m-RNA to develop vaccines seems to have further fuelled the FOMO. Will they succeed? Answering that question requires a reimagination of what ‘success’ implies in this context. Most of DARPA’s initiatives fail, by design. Had most initiatives been marketable, it would’ve only meant one thing: the agency wasn’t betting on the groundbreaking ones. Secondly, even the successful ones such as the ARPANET require long gestation periods. In essence, DARPA replicas need to be set up with the apriori acknowledgement — and requirement — that it should fail most of the time and prepare for long periods with zero successes. That seems to be a difficult act to accomplish. The Economist (June 5, 2021) edition describes a few principles that made DARPA tick:* An anti-bureaucracy setup. From The Economist:“Whereas most (R&D agencies) focus on basic research, DARPA builds things. Whereas most use peer review and carefully selected measurements of progress, DARPA strips bureaucracy to the bones (the conversation in 1965 which led the agency to give out $1m for the first cross-country computer network, a forerunner to the internet, took just 15 minutes). All work is contracted out. DARPA has a boss, a small number of office directors and fewer than 100 programme managers, hired on fixed short-term contracts, who act in a manner akin to venture capitalists, albeit with the aim of generating specific outcomes rather than private returns.”* Freedom to try and fail. This often means no ministerial oversight and more crucially, a common consensus amongst political actors that such agencies will be given a long rope.* An assured customer from within the government. Some of US’ own DARPA copies haven’t met similar successes partly because they don’t have an assured customer like the US Department of Defence ready to deploy products of grantees.Apart from these three elements, there’s another underappreciated factor in my view: a powerful national adversary. DARPA was given the freedoms it got because of the threat the USSR posed. The narrative aspect (democracy vs communism) was no less important in getting scientists onboard on dual-use inventions. What about India’s chances at replicating DARPA? I would wager that factors #2 and #3 are not difficult for India to manage. There is precedence for India’s national security agencies being left out of parliamentary oversight and financial audits. What’s more difficult is #1. For a government to create an anti-bureaucratic setup that pursues excellence requires immense state capacity of the kind that Indian governments lack. Of course, Indian governments will have much less money to spare than their western counterparts. But that shouldn’t directly mean fewer risks. It only means that the areas that India chooses to focus on should be different from the ones that the US does. As economists would say, focus on the comparative advantages.More importantly, India’s revealed preferences show that in its collective imagination, Pakistan was, until now, the most significant adversary. Managing such an adversary didn’t require cutting-edge technology. It just required us to be marginally be…

    Full show notes at the publisher

    #131 Learn From Others. It's Free 🎧 Jun 13, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. India Policy Watch: Road Ahead Insights on burning policy issues in India- RSJWhat’s next for the Indian economy? Here’s a quick 8-point view on where things are at today.* Clearly, the speed of vaccination will be the single biggest driver of how quickly the economy recovers this year. The daily vaccine rate has inched up to over 3 million a day after a poor May. While this isn’t adequate, there’s greater intent in procuring and debottlenecking the vaccine delivery process that’s evident. India has only vaccinated about 50 million with both the doses as we write this. It will need tremendous effort to get this number to over 600 million before December but it looks in the realm of possibility. That number will get us close to herd immunity. There’s a skew in vaccinations rates with the top 20 cities getting disproportionate supply of them. Considering these are economic hubs and drivers of consumption, this is acceptable for some time. But this skew has to reduce and the vaccines must reach the rest of India soon to reduce the probability of a third wave. There’s a danger of lapsing into complacency on speed of vaccination seeing the reduction in cases and resumption of economic activities in the big cities. We cannot afford it. * The rural economy has taken a hit in the second wave going by the case count and deaths. The rural demand had held up during Wave 1 last year but it was already tapering before the start of Wave 2. The high auto-debit bounce rate data emerging from NPCI suggest greater stress in the SME sector in this wave than the previous one. The consumer sentiment surveys show the perception about current state of the economy and about the future are worse today than during the first wave. Considering the sentiment will remain muted till September when most of urban consumers would be vaccinated, this suggests we will need a magical H2 for the overall consumption to be better than FY 21. That’s unlikely to happen. IMD has predicted a normal monsoon in 2021 which is a positive though the correlation between monsoon, agriculture production and inflation has grown weaker over the years. * On the balance, the real GDP for FY 22 will struggle to be at the pre-pandemic levels of FY 20. I think we will come below it. That’s two years lost because of the virus. The human impact of this loss is not widely understood or appreciated yet. On the other hand, the headline inflation might grow (CAGR) at about 6 per cent during the same two year period. This is stagflation territory. The usual problems that have plagued the economy over the last “lost decade” will continue if there isn’t serious problem solving skills brought to the table by the economic team of this government. The banking (esp PSU banks) and the financial services ecosystem will remain in stress following the pandemic. The unwillingness to lend despite huge liquidity in the system will persist. And the sectors that have been under chronic stress like infrastructure, power, telecom and SMEs will continue the same way. Barring few announcements and repackaging of old ideas, there’s no real plan that’s emerged for these issues. Instead there’s hope and optimism of some kind of magical robust recovery of the economy that’s served as a solution. Hope cannot be the strategy. * The big difference in FY 22 will be the robust recovery and growth that will be seen in OECD economies. This bodes well for Indian exports. The Wuhan Lab virus origination theory and the more direct approach of Biden administration in competing with China on technology and science (US Innovation and Competition Act that was brought in this week) will make the ‘China plus 1’ model more mainstream for many companies who use it as their manufacturing base. India will have to double down on PLI schemes, ease of doing investment initiatives and woo these companies with intent. This will require bringing policy reforms, reducing state control, deft diplomacy and avoiding dysfunctional political moves that seems to have become the calling card of this government in its second term. * The biggest issue that should worry the government on both economic and political fronts is jobs. Youth (15-24 age group) unemployment has gone from about 17 per cent in FY17 to over 40 per cent in FY 21 according to CMIE. The trolls can shoot the messenger (CMIE) calling it a private company. But CMIE has a track record for providing unbiased data over the years. It is easy to call it names now when the data looks inconvenient. But it won’t help India. It is important to look at the trends and think of policy actions rather than burying our collective heads in sand and listening only to the vacuous paeans of friendly trolls. The real picture isn’t pretty. The service sector jobs have been impacted because of the multiple lockdowns. About 80 per cent of service sector jobs that were lost in Wave 1 were regained by Feb 2021. That meant a 20 per cent permanent loss of jobs in the sector. But, more importantly, the corresponding percentage of jobs regained in manufacturing (excluding construction) was only 45 per cent. The cost cutting initiatives the industry did during Wave 1 have become permanent. This was evident in the FY 21 earnings growth of the listed companies that came in around 25 per cent (y-o-y). So, while the service sector has struggled to create jobs, the manufacturing has shed flab and is in no mood to bring it back. This has meant a reverse migration of labour to agriculture from industry. This is upending the gains made over the last two decades in moving labour out of farming. * The K-shaped recovery was clear after Wave 1. It will turn more pronounced after this wave. This is clear from multiple data points - earnings growth of BSE 100 or NSE 50 companies that’s driving the stock markets to record highs, the GST monthly collections data that suggests more formalisation of the economy but, possibly, hides the decimation of the informal sector. The wage bill for large companies grew by over 5 per cent in FY 21 in contrast to the almost 10 per cent contraction seen among MSMEs. The high liquidity in the system has allowed the large companies to deleverage over the past five years without any growth in capital investment despite the hollow public commitments made by industry captains. The economy has taken a sharp oligopolistic turn over the last two years across the sectors. Considering the higher health and economic impact in rural areas in this Wave, there will only be exacerbation of the K-shaped recovery this time. This will have political and social repercussions too in future. * The current account balance is at a surplus of over USD 25 bn driven by weak domestic consumption last year and FDI and FPI inflows into Indian equity markets and a select set of companies. Contrary to the celebratory tweets of the partisans, a surplus current account isn’t necessarily good news for this stage of Indian economy. The Indian forex reserves are also at their record high at over USD 600 bn (add another USD 75-80 bn of outstanding forward dollar purchases). FY 22 will not see any significant change in these. The current account balance will see net inflows given the outlook on domestic consumption. This gives RBI significant opportunity to keep interest rates low (real interest rates are in negative zone already), take measures to spur growth and monetise deficit without the risk of currency instability. This window must be used by the government.* In summary, there are three policy moves to make - a) address the old, chronic twin balance sheet issue (multiple recommendations already in the policy sphere). Else it will get worse after Wave 2 and continue to be a drag; b) continued focus on exports and Make in India measures to take advantage of the recovery in OECD and possible isolation of China; c) Start the capex cycle, spend on healthcare and spur consumption through direct transfers in H2 FY 22 when sentiments will be better. The current account surplus and record forex reserves give us a window to do targeted spending to revive demand. This isn’t the time for austerity and tightening of the belts. Spend. Then spend some more. Else, stagflation will be a reality. Matsyanyaaya: Aussie Rules DiplomacyBig fish eating small fish = Foreign Policy in action— Pranay KotasthaneDiscussions on India’s diplomacy often hit a wall called ‘lack of capacity’. The conversation-ender is often the small size of India’s diplomatic corps. To take this conversation over the wall, I’ve been on the lookout for diplomatic institutions that can serve as reference points for India in terms of getting more done with less resources. And Australia fits the bill. Despite a small corps — just 833 Australian staff serving overseas — Australia’s diplomatic outreach has several innovations to its name. I will discuss three recent ones here.* Paradiplomacy. Australia gets around its low diplomatic corps strength (to some extent) by allowing its states to have their own trade and investment offices in other countries. In Bengaluru alone for example, at least two states — Victoria and Queensland — have trade offices while the Australian consulate for southern India is located in Chennai. Victoria has a total of 23 such offices in important cities across the globe, New South Wales has 11, and Queensland has 16.I couldn’t locate any recent papers that evaluate the successes and failures of the Australian Paradiplomacy model but this is one area where Australian experiences can be of help to India. Instead of waiting for the Union government’s diplomatic intake to rise, let states take a lead on the trade and investment fronts.* An India Economic Strategy to 2035. It’s somewhat amusing that the Australian government has an India Economic Strategy to 2035 document even though India itself doesn’t have an official economic strategy that looks 15 years ahead. Be that as it may, this document is far-sighted. It begins by saying that ‘There's no single major market out to 2035 with more growth opportunities for Australian business than India.’ Apart from identifying key sectors, it also identifies ten priority states in India where Australia should focus leading up to 2035. Under resource constraints, prioritise. This is another lesson worth emulating.* Focusing on forward-looking global themes. I found out only a couple of weeks ago that Australia has ambassadorships and strategies for Cyber Affairs and Critical Technology, and Gender Equality. Its International Cyber and Critical Technology Engagement Strategy is an interesting document listing out Australia’s vision, goals, and values in the realm of high tech geopolitics. Having ambassadors focusing on horizontal global themes along with the traditional geographic verticals is another innovation that’s worth thinking about.In short, a small diplomatic corps cannot be used as an evergreen excuse for India’s underdeveloped global outreach. As Australia’s example shows, there is scope to do more with less.PolicyWTF (revisited): China’s demographic flip-flopsThis section looks at egregious public policies. Policies that make you go: WTF, Did that really happen? — Pranay KotasthaneOn May 31st, the Politburo of the Communist Party of China decreed that parents can now have three kids. Too little, too late.In edition #4, I had discussed how China’s one-child policy had accelerated the decline in fertility rates. Changing the upper limit to two in 2016 and to three in 2021 is the closest that an authoritarian regime can come to accepting failure. This is of course quite relevant for India since population, for many, is the root cause of all that’s wrong here. Even if it were a problem, the society has solved it on its own. From a fertility rate of 5.9 in 1960, it has come down to near replacement level — 2.2 in 2018. In any case, India’s problem is undergovernance and not overpopulation, as my colleague Nitin Pai has written before. We have written about this in our edition #49 here. To all those who still curse India’s population, learn from China’s policyWTF.To know more about China’s one-child policy, tune in to our Dec 2019 All Things Policy episode.India Policy Watch:The Fable of the Monkey and the two Cats Insights on burning policy issues in India- Pranay KotasthaneLast week saw an ugly spat between the finance ministers of Tamil Nadu and Goa on the sidelines of a GST meeting. Partisans from both sides predictably quarrelled and moved on. Nevertheless, this kerfuffle is useful for making an important point that often gets missed. The central issue is that the states’ focus on horizontal devolution is misplaced. Horizontal devolution refers to the formula used for sharing resources between states. All federalism debates almost exclusively focus on just this one issue. It also gets inaccurately framed as a ‘north vs south’ debate — how the taxes collected from the south are frittered away in the northern wastelands. But the problem really lies in vertical devolution i.e. how the tax resources are split between the Union government and all states as a whole. If the Union government keeps less money to itself, all states stand to gain together. People do not raise this issue because they falsely believe that the Union government increased the devolution substantially from 32 percent to 42 percent following the 14th Finance Commission recommendations. As the 14th FC covered the requirements of both plan and non-plan expenditure, in reality, the increase was from 39 per cent to 42 per cent. Even this modest 3 per cent increase was sabotaged by the Union government by increasing cess and surcharges, which are not shared with states. That’s why I say that India’s fiscal federalism resembles the monkey and the two cats fable. While states fight amongst each other, the Union government is happy appropriating 59 percent of the divisible pool resources, raising new cesses, and using a part of these funds to run centrally sponsored schemes that fall squarely in the states’ constitutional domain. I will raise a toast to federalism when I see at least a few states cooperating to addressing this imbalance in the vertical devolution. Until then, Union governments will be happy to play one state against the other.HomeWorkReading and listening recommendations on public policy matters* [Article] Sajjid Chinoy’s two-part series in Business Standard on the economic impact of the second wave * [Video] Prof Ananth Narayan in conversation with Mitali Mukherjee for The Wire on the way ahead for the economy.* [Article] A cruel reminder of Goodhart’s law. To meet the 50,000 per day COVID-19 testing target for the Kumbh Mela, private labs forged the results. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit publicpolicy.substack.com

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    #130 Everybody Loves A Good Conspiracy Theory 🎧 Jun 06, 2021
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    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. India Policy Watch: The Demarcation Between Science And Ramdev Insights on burning policy issues in India- RSJEvent 1: May 23, 2021. Yoga guru Ramdev:"Everyone should progress through self-evaluation. Some allopathic doctors too consider Indian medical science, Ayurveda, yoga as pseudo-science, (emphasis ours) which hurts crores of people.” Event 2: May 29, 1919. New York Times (reporting on the event on Nov 7, 1919):I will connect the two events (hopefully) in a bit.Take Event 1. This was Ramdev in his response to the letter he received from Dr Harsh Vardhan, the Union Minister for Health. The minister had written to Ramdev about his recent statements about allopathy and doctors. You can read more about it here. Dr. Vardhan was forced to write to Ramdev because of the campaign by the IMA (Indian Medical Association) against the damaging statements made Ramdev about modern medicine. Over the past year, Patanjali Ayurved, a company promoted by Ramdev, has made several claims of curing Covid-19 in seven days through its product, Coronil. He has also, at different times, called Allopathy a ‘stupid science’, falsely claimed over 10,000 allopathic doctors died after taking both doses of vaccines and blamed the global drug ‘mafia’ for conspiring against him, Ayurveda and India in that order. Now you might dismiss the whole thing as a sideshow of which there are plenty at anytime in India. But this isn’t one. Ramdev is a hugely influential figure who has a daily show on the national TV channel watched by millions. He singlehandedly created a packaged goods behemoth in the last five years riding on a deeply held belief among Indians about the ‘purity’ of Ayurveda. There have been many questions on those claims. But that’s another story. Anyway, there are a few real issues to contend with here. First, we are in the middle of a pandemic and our fastest way out of it is to vaccinate people at lightening speed. Any statement or action that stops us from doing this is bad and must be stopped. Second, India has made real progress on key health parameters like infant and maternal mortality rates, malnutrition, life expectancy and disease burden in the past two decades. But the harsh reality is it is still placed in the bottom quartile among nations on these metrics. We have had some hard fought wins in making modern medical treatments acceptable among people. We shouldn’t be frittering away these gains by raising suspicions about it among the masses. Lastly, the frontline workers and doctors have put their lives on line during the pandemic to serve the patients. We were showering flower petals on them a year back. Since everything is political now in India and nationalism can be used to defend the indefensible, the troll armies have turned this episode into a dystopian farce where pharma ‘mafia’ and Christian lobbies are the villains and Ramdev is the one exposing their nefarious plans. Now any doctor speaking against Ramdev risks being labelled a pawn hurting India’s interests and its inevitable rise that these lobbies are hard at work to stop. That we want to alienate doctors, hospitals and pharma companies in middle of a pandemic is beyond my comprehension. This is a self goal like no other. The Demarcation ProblemAnyway, the point about pseudoscience made by Ramdev is of interest to me. Who defines it? If crores of people follow something, does that mean it shouldn’t be called pseudoscience? Palmistry, astrology, homoeopathy, Ayurveda - where do they stand on the spectrum of science and pseudoscience? Since some kind of revivalism is on within the Indian society, it will be useful to explore this further. That brings me to Event 2. Why was the eclipse on May 29, 1919 such an event? Here’s why:A hundred years ago, Albert Einstein wasn’t a household name. He was a professor in Berlin, known to scientists, intellectuals, his divorced wife and the first cousin who would soon become his second wife — but not to the world.His rise to superstardom began on May 29, 1919, when the moon and sun lined up just right for a solar eclipse. Photos of the astronomical event showed something strange: A few of the stars visible during the blackout were in the wrong place.Einstein had foreseen this. Using his theory of general relativity, he made the seemingly crazy bet that the stars’ positions in the sky would shift during an eclipse, and even calculated by how much.As the data came in and the results were confirmed, the general theory of relativity was proven. Newtonian physics was no longer the truth. “Revolution in Science,” the front page of The Times of London proclaimed. “New Theory of the Universe: Newtonian Ideas Overthrown.” The New York Times followed suit with “Men of Science More or Less Agog.” Following this with interest was a precocious 17 year old student in the University of Vienna. His name. Karl Popper. This event would leave a deep impact on him as he thought about the nature of truth and the philosophy of science in his later life. The idea that Einstein could precisely postulate in advance what would happen during a solar eclipse and then have the courage for it to be proven or be ‘falsified’ publicly was in sharp contrast to other ‘sciences’ that were in fashion during those years in Europe, namely, Marxism and Psychoanalysis. For over two centuries, scientists had empirically tested Newtonian laws and it worked in all known cases. New inventions came up based on these laws including the steam engine and the power loom that revolutionised societies. Kepler showed how the laws worked for planets and other celestial objects. Haley predicted a comet would reappear again in 76 years based on it. The scientific method that Bacon had proposed involving observation, hypothesis, test and conclusion was proven over and over again for Newtonian physics. That’s how the universe worked. Yet, when Einstein argued that they didn’t work for the special case of really large objects and it was proven during the eclipse of 1919, the entire community of physicists updated their priors. For Popper this was the ‘demarcation’ between what he called science and non-science (later termed pseudoscience by others ). To him all observation is selective and can be used to prove anything. Psychoanalysis was a prime example. Therefore, he dismissed inductive reasoning as the method of drawing scientific inference. Because every single observation so far has followed Newtonian law, doesn’t mean it is the truth. Because the Sun rises every morning doesn’t necessarily prove it will rise tomorrow. More has to be done.Popper instead offered ‘falsifiability’ as the test to ‘demarcate’ science and non-science. As he put it, you can always cherry-pick evidence to prove any theory. Like psychoanalysts and Marxists of his time were doing or what Ramdev is doing with his claims. That’s not enough. For him what really counted as science was if you could stake your theory on a future prediction that could turn out to be false like Einstein and the physicists did with the solar eclipse. A million instances of something working isn’t enough to prove something is science but a single counter-instance is enough to falsify the claim that it is science. That’s how the claim should be tested. On falsifiability. So, science is always about a provisional truth till someone falsifies it. The moment it is falsified, it is no longer science. Science, to Popper, therefore was a grand pursuit to solve big problems and not about making series of tiny empirical observations and figuring out the cause behind them. The observations were only to be made to serve the grand pursuit of truth.Applying FalsificationNow there were others who debated with Popper on the philosophy of science, most notably, Kuhn who coined the term ‘paradigm shift’ to explain how science evolves and those debates are best left for another day. For now, let’s consider ‘falsifiability’ as explained by Popper and view modern medicine as it is practised today. The entire drug discovery and development process involving identification of likely compounds useful in curing a disease, synthesis, characterisation, validation, optimisation and assays that will make it ready for clinical trials follows the principle of finding a single counter instance that would falsify the results. The clinical trials, multiple reviews by the regulators and then the monitoring of the drug performance after it has been launched in the market are all meant to ensure that any instance of failure is captured and studied to eliminate the root cause. This is a rigorous process to stand the test of ‘falsifiability’ and keep modern medicine as close to true science as possible. I will leave it to you to assess other ‘sciences’ I have mentioned earlier on this scale. For me none pass the muster.To be clear, this isn’t to overstate the primacy of science in our lives. You might find comfort and peace of mind through astrology. Yoga and Ayurveda might help you to stay fit and build your immunity. You might have personal experience of homoeopathy working for you. Some scientist who retired from ISRO (or IISc) or some former Nobel prize winner might believe in past life regression or Vedic chants to cure something. These could all be observable truth for those instances. It won’t make them science. Because they can easily be falsified. And since we are at it, let’s not fall to the usual exaggerated claims that do the rounds on Whatsapp. Yes, China is big on their traditional medicines. But if you dig deeper, most of the traditional medicines sold are for the usual reasons: to make you “strong” (wink), for skin ailments and for common colds and fever. Nobody is claiming it will cure Covid-19. The other argument about modern medicine deriving their compounds from nature like Ayurveda also needs to be understood better. It is true many modern drugs have compounds that are extracted from plants and herbs that we often use in Ayurveda. But the modern medicine process is quite exact about the compound, the amount and how it should be delivered into our system. Eating the same plant or herb as a paste or in food isn’t the same thing though it might occasionally yield the same results. There is a difference. The same as that between Sanjeevani and the Dronagirimountain. Between specifics and generalisation. And no, searching for Sanjeevani isn’t exactly a scientific pursuit. One of the duties of citizens mentioned as part of the Directive Principles of State Policy in our Constitution is “to develop the scientific temper, humanism and the spirit of inquiry and reform”. This is good goal for every Indian to pursue. You don’t need to jettison any tradition for it. The two can co-exist. Global Policy Watch #1: When Conspiracy Theory Comes True Bringing an Indian perspective to burning global issues- RSJThere was this amazing piece in the Newsweek about how a global ragtag band of gumshoes, data scientists, molecular biologists and conspiracy enthusiasts exposed the many false claims of the Wuhan Institute of Virology about the origins of Covid-19. The mountain of evidence collected and meticulously analysed by the group, who now go by the appropriate sounding name DRASTIC (Decentralized Radical Autonomous Search Team Investigating COVID-19), has been enough for the Biden administration to launch an investigation into the source of the virus. The lab origin of the virus was a theory that few believed in even a month ago. But now it is almost mainstream. Conspiracy theories are often used as a label to delegitimise notions and those believing in it are seen as misfits. Calling something a conspiracy theory is to lower its credibility. They have been the bane of many elections, triggered unrest and have kept social media platforms on their toes. But the very public victory of DRASTIC will have an impact on this discourse. It won’t be easy to wave something off as a conspiracy theory. Pranay writes more about this in the next section below. Interestingly (and fittingly, perhaps for this edition), the first philosopher to write about conspiracy theory was Karl Popper. In his book The Open Society and Its Enemies, Popper moves away from science in the realm of nature to the state and the society. He describes ‘conspiracy theory of society’ as an approach to explain a social phenomenon by finding out those who have planned or conspired for it. But Popper argues most conspiracies that are hatched don’t go as per plan and end up with unintended consequences. The role of social sciences, therefore, is to explain these unintended consequences arising out intentional human actions. That sounds like what we strive to do in this newsletter. There will be lot more written as the origin of the virus story progresses. This might be the most consequential conspiracy theory of all time. Global Policy Watch #2: Networks vs Hierarchies Bringing an Indian perspective to burning global issues— Pranay KotasthaneThis week had its fair share of mind-boggling stuff. To name a few: a court case by a Bollywood celebrity against 5G deployment, a well-known lawyer promoting vaccine hesitancy, and reports documenting how a group of passionate folk forced renowned scientists to eat their words on the virus lab-leak theory.There’s something common to all these events. To borrow a phrase from media analyst Martin Gurri, such instances illustrate ‘the crisis of authority’ in the Information Age. There’s no theory that won’t be questioned by radically connected individuals, irrespective of the evidence backing it. This newsletter has discussed Radically Networked Societies (RNS) many times over in disparate contexts. We have discussed how no issue is local anymore. Even highly-specialised issues are vigorously contested by laymen. Even decisions by authoritative organisations are questioned, debated, and sometimes overturned, in a vastly expanded information sphere. The thesis of Martin Gurri’s 2014 book The Revolt of the Public is along similar lines. He frames the current upheaval as an asymmetrical warfare between hierarchical institutions of the Industrial Age and hyper-networked individuals of the Information Age. In his words:“When judging his government, Homo informaticus can then do so in light of alternative possibilities—different views of the same policy or event, different values invoked for an action or inaction, different performance by other governments, real or imagined. The first step toward skepticism is doubt, and Homo informaticus, exposed to an independent channel, must confront choices and doubts when constructing his story of the world.…Governments of every stripe have had trouble grasping the sudden reversal in the information balance of power. Proud in hierarchy and accreditation, but deprived of feedback channels, the regime is literally blind to much global content. It behaves as if nothing has changed except for attempts by alien ideals—pornography, irreligion, Americanization—to seduce the public. Most significantly, the regime in its blindness fails to adjust its story of legitimacy to make it plausible in a crowded, fiercely competitive environment.…The consequences are predictable and irreversible. The regime accumulates pain points: police brutality, economic mismanagement, foreign policy failures, botched responses to disasters. These problems can no longer be concealed or explained away. Instead, they are seized on by the newly-empowered public, and placed front-and-center in open discussions. In essence, government failure now sets the agenda. As the regime’s story of legitimacy becomes less and less persuasive, Homo informaticus adjusts his story of the world in o…

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    #129 To Kill A Mocking Mosquito 🎧 May 30, 2021
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    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. Global Policy Watch: Global Order - Where Will It Come From? Bringing an Indian perspective to burning global issues- RSJA couple of recent events made me wonder about the state of global affairs these days and an excuse to write about Hedley Bull and his famous book, The Anarchical Society – A Study of Order in World Politics (1977). Take the incredible story of Belarus forcing down a Ryanair flight while it was in its airspace to arrest Roman Protasevich, a dissident who runs a popular Telegram channel widely used to protest against the regime of the dictator Alexander Lukashenko. A MiG 29 fighter jet was used to force the flight carrying 170 passengers to make a u-turn and land at the Minsk airport. This was a state sponsored hijacking with overt support from President Putin of Russia. The EU condemned the incident and banned any carriers from flying over the Belarusian airspace. But barring strong press statements and warnings there wasn’t much teeth in the response from the West. Meanwhile, Russia and Belarus upped the ante. On Thursday, Russia refused to let planes land in Moscow that were planning to bypass Belarus. The EU plans to apply sanctions on Belarus who is a signatory to the 1944 Chicago convention that established common rules of aviation safety. But Belarus could hardly be bothered. It was their airspace, their perception of threat to their sovereignty and they are going to apply their laws. And they have Russia backing them. Who are you to ask questions? That’s their dare to the NATO and EU. The other story that broke in the middle of last week is of Whatsapp suing the government of India over the Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 which came into effect in May 26. Now there are reasons why the Government wants to regulate social media platforms. We have often spoken about radically networked societies (RNS) here and how difficult it is for a hierarchical setup to counter the speed with which RNS mobilise themselves. This speed or the virality of the social media platform can pose real danger to society when used to spread rumours, hate speech and abusive content. So, regulations are welcome if they address this problem. There are two points of contention in the Intermediary rules though for Whatsaspp. The first is the demand for the traceability as written in Rule 4(2) of the guidelines. It requires a messaging platform to enable the identification of the first originator of information when demanded through a judicial order or an order passed by a competent authority as per IT Rules, 2009. This is a problem for Whatsapp (or any end-to-end encryption messaging service). They can only know the first originator if they start tagging each message with a unique identifier and create a metadata for tracking and marking every message on its platform. This is non-trivial technical problem to solve but more pertinently this will mean the ability of the platform to trace every message and know its details. This violation of privacy of every user of the platform to know the details of a select few doesn’t pass the test of proportionality. So, this should be unacceptable to any end-to-end encrypted messaging platform.The second issue here is the very broad nature of what can constitute grounds for seeking this information. Like most laws this involves messages that are specifically criminal in nature like child pornography, sexual abuse etc. But like the definition of free speech in the Indian Constitution, they also include subjective grounds like threatening sovereignty and security of India or creating law and order problems. These subjective interpretation could be abused to seek information about anyone. Any rule should be drafted with a view on how it could be used for wrong ends by anyone in the future. The current reassurance given in the law that there will be no requirement of disclosure of the message or the sender has no meaning when the demand for the originator is made based on the message itself. There are three arguments being made against Whatsapp on this case that merits discussion. One, Facebook (that owns Whatsapp) has built a business model by collating all kinds of data about its users (with or without consent). So, irony kills itself when Facebook claims to be a champion of privacy. This is true except for one important point. Facebook isn’t a state. It abuses data for its commercials gains. You can call it an exemplar of the surveillance economy. But a state having access to that kind of data is different. The state has the monopoly of violence over its subjects. No company has that. A surveillance state is a completely different ball game than a surveillance driven business model. Two, Whatsapp cannot wash its hands off any responsibility for the messages that flow through its platform. This is correct and Whatsapp should be asked to provide mechanisms through which messages that are flagged by its users, a judicial or a competent authority as abusive or illegal can be restricted from being passed along any further. This must be asked of all social media platforms. Asking for the originator of a message, however, opens up a Pandora’s box that directly impinges on individual liberty. Three, there’s an interesting argument made that Whatsapp cannot go against the law of the land. This is a bit troubling. Whatsapp has been in India for many years following the law of the land. It disagrees with a particular clause in a new set of rules and it is contesting that in the court of law. This is usual judicial procedure. This isn’t an MNC challenging the sovereignty of India as it is being made out. Those making these arguments either want to use the easiest crutch of nationalism to obfuscate the principle of privacy on which Whatsapp is making the argument or have their own vested interests in ‘digital nationalism’. In any case, there isn’t a final privacy law that has been debated and passed by the parliament. So, the point of challenging the law of the land on this topic is itself moot. Enforcing Global OrderThere is a broader point I want to discuss based on these incidents. Is there any legitimate global authority left that can enforce any kind of global order any more? Who will stand up for basic human rights like the freedom to dissent, to question the powerful or the right to privacy? Is there a need for a global policeman, a competent and empowered multilateral institution or a rules based order, that will question a nation-state about its actions? Or, will nations justify all their acts under the cover of sovereignty? We talk about international relations quite often here. Pranay uses Matsyanyaya (big fish eating small fish) as the principle that guides relations between nation-states. This is what’s termed as the realist view. Nations act in their self-interest and they form alliances or take positions that furthers it in the long term. A cynical view of this would be to think of nation-states in a Hobbesian ‘state of nature’. Of course, the reality isn’t exactly this. Nations help other nations, agree mutually on a common set of rules to guide their behaviour and set up multilateral organisations to follow a code of conduct in global affairs. Yet the realist will say these sound great on paper but cannot be enforced unless there is a real possibility of a more powerful nation or nations threatening real harm to another nation which isn’t toeing the line. Stripped of all niceties, multilateral organisations depend on a global power to maintain world order. It is matsyanyaya after all.After the fall of USSR, the overwhelming consensus was the liberal, democratic global order will have a long, uninterrupted reign. Nations will recognise this to be the ultimate political and social end and they will strive to be co-opted into this order. History, in that sense, had ended. But that was not to be. There were two reasons for that. One was philosophical: an ideology without a counter loses it raison d'etre. The nature of the political rests on the Schmittian ‘friend’ versus ‘enemy’ divide like we often say here. It will splinter from within over time and find its own enemies. That’s what happened eventually to the liberal, democratic hegemony as the extremes on both left and right pared it away. The second reason or a set of reasons was rooted in specific events and it was more substantive. The Iraq War based on fake reports of weapons of mass destruction possessed by the regime, the global financial crisis (GFC) and the policy response that led to delegitimisation of globalisation among the masses, and the spectacular rise of China that benefitted from global trade but didn’t turn into a liberal, democracy as was expected - all of these events fanned populist movements across democracies and turned them insular. The liberal democratic world order lost its bearings. It was the light that failed.So, here we are. Notwithstanding the recent moves of the Biden administration to undo the Trumpean ‘America First’ stand, it is evident the US remains reluctant to lead a world order to promote liberal democratic values in the way it did during the Cold War. Then we have Xi Jinping advocating a ‘community of common destiny’ that conveniently sidesteps any values that are inconvenient to China. And global MNCs and tech giants with user base larger than most countries aren’t interested in taking a stand on liberal internationalism. That has dissolved any hopes many had on globalisation countering great power rivalries, trumping rules of non-intervention in matters of sovereign states and promoting an order based on commercial interests. That old Friedman chestnut about no two nations that both had McDonald’s will ever fight a war against each other is well and truly buried. So, what kind of a world order should we hope for in a future?Bull And Neo-MedievalismStrangely, that’s what brings me to Hedley Bull’s The Anarchical Society. Bull accepts the idea of Matsyanyaaya but argues for an international society that’s built on anarchy with some kinds of overlapping natural checks and balances. Bull argued any kind of hegemonic world order like what the liberal democratic order aspired for post Cold War or the dreams of some kind of universal government are bound to end in disappointment. Instead, he suggested the society could move towards what he termed ‘neo-medievalism’, a system that would:“avoid the classic dangers of the system of sovereign states by a structure of overlapping structures and cross-cutting loyalties that hold all peoples together in a universal society while at the same time avoiding the concentration inherent in a world government" He used neo-medievalism from the order that was prevalent in western Christendom in the middle ages:“It is also conceivable that sovereign states might disappear and be replaced not by a world government but by a modern and secular equivalent of the kind of universal political organisation that existed in Western Christendom in the Middle Ages. In that system no ruler or state was sovereign in the sense of being supreme over a given territory and a given segment of the Christian population; each had to share authority with vassals beneath, and with the Pope and (in Germany and Italy) the Holy Roman Emperor above. The universal political order of Western Christendom represents an alternative to the system of states which does not yet embody universal government.” It appears to me we are in this kind of a nether space today. In the foreword to the 2012 edition of Bull’s book, Andrew Hurrell wrote perceptively about why Bull remains relevant in this age:“And yet, it remains plausible to argue that alternative global frameworks for order are either pluralistic and contested (for example transnational civil society) or efficient but highly unstable (as in case of markets and the global economy). Yes, the past 35 years have seen an intensification of economic and social globalisation , but the inequalities and discontent of globalisation have generated increased political strains both internationally and within many states, and have undermined the notion that globalisation will lead easily or unproblematically to shared values, resilient institutions, or to a meaningful global moral community. Yes, the density of the norms, rules and institutions of international society has increased tremendously, often pushing in liberal direction. And yet Bull’s scepticism may still be merited: whose solidarist or liberal order? What kind of liberal and liberalising order is it that seeks to promote democracy but ignores distributive justice and brushes aside calls for the democratisation of global decision making? How stable and how legitimate can a liberal order be when it depends so heavily on the hegemony of the single superpower whose history is so exceptionalist and whose attitude to international law and institutions has been so ambivalent? How will international society confront its current triple challenge - a power transition driven by rise of new emerging powers; a structural transition in the scope of cooperation as governments have to face a series of complex and often inter-connected global challenges; and a cultural transition as both state power and the dynamics of the global economy move beyond the West.” In a world still fighting a pandemic where the absence of global order was felt in our uncoordinated response and our inability still to inoculate the world together, Bull’s warning about premature celebration of global solidarity rings true. A reimagining of the world order is necessary. But no one knows where it will come from. PolicyWTF: Ek Machchar…This section looks at egregious public policies. Policies that make you go: WTF, Did that really happen?- RSJThere’s that old joke about Roger Federer (RF) and his Indian Fan (IF). IF: Do you know Indians buy the maximum number of tennis balls and racquets in the world?RF: Oh! Must mean a lot of Indian kids playing tennis then.IF: No. We play cricket with tennis balls.RF: Then what do you do with the racquets?IF: We use them to kill mosquitoes.The mosquito killing electronic racquets are ubiquitous in India. You will find them at homes, at shops and with anyone who works outdoors in the evenings (watchmen especially). There are reasons, of course. First, the excessive use of DDT and then liquid mosquito repellents have meant mosquitoes that have mutated to resist them. Two, liquid mosquito repellents are expensive with a refill costing Rs. 50-70 that are needed almost every two weeks. Three, liquid repellents need constant supply of electricity and are useless outdoors.I don’t want to go into the familiar lament of the state not being able to provide safe air and a mosquito-free environment to its citizens in 70 years. In fact, things have gotten worse. Almost no one who grew up in 70s-90s remembers dengue or chikungunya being the kind of epidemic they have turned out to be in the last two decades. The electronic mosquito-killing racquet was therefore a lovely little contraption. Priced between Rs 200-300, these could last a few months and once charged could be used for a few days uninterrupted. Importantly, they could be used outdoors which made it popular among those who worked outdoors in the evenings. Indian traders mostly imported these racquets (at likely import price below Rs 120) and incurred the import duties, costs of storing and distributing these racquets far and wide. Now read this. The Directorate General of Foreign Trade (DGFT) in a notification dated April 26 has prohibited the import of “mosquito killer racquet” (their words) if the…

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    #128 Where The Clear Stream Of Reason.. 🎧 May 23, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. India Policy Watch #1: Jabki Dimaag Khaali Hai (While The Mind Is Empty) Insights on burning policy issues in India- RSJThe sound and the fury surrounding all that’s happening in India now is quite maddening. Any kind of meaningful analysis risks drowning in it. In any case, there’s no analysis possible any more in India. There are only positions. We have fallen in love with the culture of intellectual nihilism. All arguments start with a bad faith assumption. And before you end it, you are tagged with toxic monikers and a litany of half-truths in the garb of whatboutery. And they bookend any discussion between two ‘argumentative’ Indians these days. We cannot say we didn’t see it coming. It is easy to cast democracy into a vessel that channels the passions of the majority. You can ride those passions to the levers of power. But it is another thing to govern and meet the aspirations of the demos. The easy way then to cover for failures is to continue fighting some mythical ancient regime or entrenched enemies who are undermining your efforts. This is imagined victimhood. When this becomes a political, social and cultural defence to any challenge, intellectual nihilism follows. Facts don’t matter then. Only faith does.We are in a tight spot today. To come out of it requires leadership, farsighted policymaking capabilities and a consensus on the path to nation building almost at par with the task we had on hands right after independence. This isn’t easy even with the best of intentions and capabilities at your disposal. Instead, I fear we have real constraints in thinking our way clearly through this. Acknowledging The ProblemThe economy wasn’t in a great shape going into the pandemic in April 2020. The twin balance sheet problem and the shock of demonetisation meant a modest 4-5 percent growth was beginning to look the best we could do. The national lockdown and the impact of the first wave has meant we will end up with about an eight percent decline in GDP in FY20-21. The general consensus within the government early this year was India had seen off the pandemic and a V-shaped recovery is well on its way. This second wave has set us back again. So, where does that leave us on the economy? There are a few factors to consider here:* Unlike wave 1, this time the impact has been felt more directly by the consuming class. This is evident from conversations with friends and colleagues, social media posts and the case counts. People have been scarred and sentiments have taken a hit. More importantly, people will wait to get vaccinated before lowering their guards. The lessons of complacency seem to have been learnt. The talk of wave 3 and its likely impact on kids have only queered the pitch. Vaccination to about 50 percent of people looks unlikely before the end of 2021. This would mean when the wave 2 subsides, there won’t be a quick bounce back in terms of increased mobility and consumption spends. There will only be a gradual return to any kind of normalcy. * Unlike last wave, this wave has impacted the hinterland. The extent of the impact is difficult to ascertain but the ground reporting from rural UP and Bihar has been heartbreaking. Rural supply chains have been disrupted and the expectation that rural economy will hold out like last year are misplaced.* Much of the heavy lifting last year to support the economy was done by the RBI through monetary policy. There’s a limit to that and it seems we have reached the end of it. The fiscal room available to the government is quite limited. It is worse than last year. The fiscal deficit is the highest it has been in a long time. Yet, the government will have to come out with some kind of a stimulus soon. People are hurting. But where will the money for stimulus come from? Expect more headline management like the Rs. 20 lac crores Aatmanirbhar Bharat package announced last year.* Exports could be a silver lining considering most of the developed world will be back on growth path by next quarter. The challenge is how well are our businesses (especially SMEs) positioned right now to take advantage of it. It is difficult to be an export powerhouse while simultaneously dealing with an unprecedented health crisis impacting the workforce. * The consensus growth projections for FY21-22 have already been lowered from 11.5 percent to 9-9.5 percent. My fear is this will slide down to 7-7.5 percent range by the time we have seen through wave 2. Since this wave is unique to India in terms of spread and impact, our economic performance, deficit and the future prospects will be an outlier compared to most of the world in FY22. We will have to keep an eye on the sovereign rating given our circumstances. There’s a danger lurking there. Given these, it is evident we will need to bring together our best minds across government, administration and industry to navigate these waters. But that will require to acknowledge we got things wrong to reach here. This isn’t likely going by precedence. It will also be interesting to see how Indian industry and capital responds to this. Of course, the public stance, like always, will be cheerleading the dispensation. But it is no secret that private capital investment has been stagnant for most of last decade. Indian capital doesn’t put its money where its mouth is. It is far too clever for that. As 4-6 percent growth (if that) becomes the accepted norm for this decade, it is likely that Indian industry and the wealthy will try and conserve what they have instead of taking risks. There are other second order social implications that might arise out of another ‘lost decade’ of tepid growth that Indian capital will be worried about. They might continue to prefer a ‘strong leader’ given these concerns. It is also clear now that any recovery will be K-shaped to begin with. The formal, organised and larger players will consolidate their gains and grow at the expense of the informal and smaller players. This trend has been seen over the past 12 months. The stock market, divorced from the real economy, already knows it and it is reflected in the performance of the benchmark indices that represent 30-50 top companies. This structural shift to an oligopoly in most sectors is evident. This will allow the state to control capital more easily as markets turn less free. In any case, the benefits of aligning to the political dispensation are already evident in the list of richest Asians. So, the industry will be more than willing to be subservient. These aren’t the best of conditions for releasing the animal spirits of enterprise. The Absent Media And OppositionIt isn’t difficult to foresee the challenges outlined here and to set up a policy framework to address it. There are two problems here. First, the centralised nature of governance in the current establishment precludes any acknowledgement of missteps or an honest assessment of the problems on hand. Second, the conventional outlets of holding the government to account, the opposition and the media, are mostly absent. Large sections of mainstream media are owned directly by the industry who would rather cheerlead than ask tough questions. Many in the industry and the media may even be ideologically aligned to the establishment. The opposition is fragmented with regional leaders often holding their own in the assembly elections. But any kind of national mobilisation to politically counter the party in power is not in sight. The PM continues to be popular despite the wave 2 failings. The political genius of the PM has been to dissolve the natural fragments of region, caste, or even, language, that precluded over-centralisation of power in the past. The Lok Sabha elections will continue to be presidential in nature for the foreseeable future. So, any real political opposition will need to contend with this. The other source of opposition, class, has disappeared from Indian politics for long. Students’ unions are politicised along party lines and have no independent line of thinking, trade unions have no teeth and farmers movement is splintered despite the protests we see against farm laws. The near absence of media and opposition has meant policy debates and discussions have suffered. There’s complacency and lack of rigour in policy making as has been evident in the past many years. There is no price to be paid for policy failure. And any failure is quickly papered over with some kind of narrative.The Surrender Of ElitesLastly, let’s turn to the elites. The section that often tends to have a disproportionate share of voice in the polity. The institutional elite have either been co-opted or they have thrown in the towel in the face of an overwhelmingly popular establishment. Universities, courts, bureaucracy, police and what’s referred to as civil society can no longer be counted on to be independent voices that will uphold the tradition of the institutions they serve. This isn’t a first in our history. But, remember, the last time it happened the consequences were terrible. That should, therefore, give us no solace. The other set of elites are those who have provided intellectual scaffolding to this dispensation over the years. Loosely put, this group would identify themselves ideologically as either conservatives or belonging to the right. I have articulated their grouses in earlier editions. It runs the spectrum - the resentment with a liberal constitution that was not rooted in our civilisational values, the anger at the radical act of forgetting our history that the Nehruvian elites thrust upon us in their wisdom, the overbearing state and the failures of leftist economic policies during the 60s-80s that held us back and the deracinated deep state (“Lutyens Delhi”) that apparently controlled the levers of power regardless of who was in power. In the past seven years it should have been clear to them these grouses aren’t easy to set right nor will their elimination lead to any kind of great reawakening in the masses. The intellectual articulation of a political philosophy that’s suited to the modern world while addressing these grouses isn’t clear yet. Instead, what we have on our hands are thuggish attempts at settling imaginary scores and continuing degradation of scientific temper in the hope it will usher in a modern version of our glorious past. If these intellectuals want the supposed UP model of today to be what India of tomorrow should look like, good luck with that ending well. I have been reading the great Hindi essayist, historian and scholar, Hazari Prasad Dwivedi over the past few months. Dwivedi was an intellectual powerhouse who was deeply rooted in the Indic tradition and philosophy. A great Sanskrit linguist who spent a lifetime studying the Sastras and writing beautiful expositions on them, Dwivedi should be more widely read today. His essays, their themes and his arguments, betray no trace of western enlightenment influence. He had a clear-eyed view of the richness of our heritage and its relevance in the modern age. In his anthology, Vichar Aur Vitark (Thoughts And Debates), there’s an essay titled ‘Jabki Dimaag Khaali Hai’ (“While The Mind Is Empty”) published by Sachitra Bharti in 1939, which is often quoted by Pratap Bhanu Mehta to make a specific point about our current obsession with our glorious past and the identity crisis among Hindus. As Mehta writes:This identity is constituted by a paradoxical mixture of sentiments: a sense of lack, Hinduism is not sure what makes it the identity that it is; a sense of injury, the idea that Hindus have been victims of history; a sense of superiority, Hinduism as the highest achievement of spirituality and uniquely tolerant; a sense of weakness, Hindus are unable to respond to those who attack them; a sense of uncertainty, how will this tradition make its transition to modernity without denigrating its own past; and finally, a yearning for belonging, a quest for a community that can do justice to them as Hindus. This psychic baggage can express itself in many ways, sometimes benign and creative, sometimes, malign and close minded. But these burdens cast their unmistakable shadow upon modern Hindu self-reflection, often leading to a discourse on identity that Dwivedi memorably described as one, where the ‘‘heart is full and the mind empty (dil bhara hai aur dimag khali hai).’’ The passions that have been fanned to animate the majority cannot lead to nation building in the absence of intellectual rigour and clear reasoning. The problem is once that genie of passions is out, it is impossible to put it back in the bottle. Its demand will never be sated.I will leave you with an extract from Dwivedi’s essay (my mediocre English translation follows):My translation:But when the mind is empty while the heart is brimming over, there cannot be any possibility of an engaging exposition of the Sastras. Otherwise, there isn't any reason to be anxious about a race whose writ once ran from the shores of River Vaksh in Central Asia to the end of South Asia, the imprint of whose culture transcended the Himalayas and the great oceans and whose mighty fleet once controlled the waters of the eastern seas. It is true that this mighty race is a pale shadow of itself today. The sons of Panini (the great Sanskrit grammarian from Gandhara) sell dry fruits and heeng on streets today while the descendants of Kumarjiva are involved in the basest of trades. Yet, there's a hope that there must be a semblance of that glory still running in the veins of this race. And it will show its true colour some day. But then I wonder. After all, a tree is known by the fruits it bears. The state of disrepair that the Hindu society is in today must trace its cause to that once glorious civilisation of the past. How can that tree be so glorious when its fruits we see all around today are so terrible?There was indeed an age of prosperity for this race. That is true. Those verdant streets of Ujjain, the gurgling sounds of river Shipra and the celestial music of the kinnaras still echo in the Himalayan valleys - these memories remain fresh in our minds. And amidst these riches, our eyes can clearly see the attack of the Huns and the defiant stand of the Aryans, the numerous rise and fall of empires, the thunderous roar of Vikramaditya. The glories of Magadh and Avanti were unparalleled. Its elite could wield the sword and the brush with equal felicity. They could fight fire with fire and let their hair down when they wanted. But things changed. The elite suppressed the masses; they paralysed the polity. The chasm within the society began to open up. The elites immersed themselves in the pleasures of the material world while the masses were tied down to scriptures and their orthodoxy. One took refuge in merriment while the other was often lampooned for their outdated beliefs. And the fissure in the Hindu society widened further. Over the centuries every invader used this to their advantage - Huns, Sakas, Tartars, Muslims and the British. They divided us further and they ruled. Today that Pathan dry fruit seller asked me if that beautiful house belonged to a Muslim or a Christian and could scarcely believe it could be that of a Hindu. And I wondered if the chasm continues widening everyday. But then the Sastras don't bother about such identity issues of the Hindus and I lack the courage to intellectually confront this issue any further. When the mind is empty and the heart full of passion, isn't it enough to have even mentally contended with the existential conundrum of our race. Matsyanyaaya: A Cautionary Tale on the ‘Israel Model’Big fish eating small fish = Foreign Policy in action— Pranay…

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    #127 What Makes an Ideology? 🎧 May 16, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. India Policy Watch: Radically Networked SuccourInsights on burning policy issues in India— Pranay KotasthaneWhen the going gets tough, we become desperate for signs of hope. Unfortunately, the union government has inspired no such thing. It has instead opted for image management over accepting responsibility, complacency over taking charge, and whataboutery over offering succour. Hope, then, springs from the stories of ordinary people pitching in to plug government failures in their own unique ways. A big portion of this effort is invisible to us from our immobile locked-in existences. The part that’s visible is what is happening over digital media. Over the past few weeks, all of us have seen relief efforts of various types, sizes, and success rates unfolding over the internet. Arranging for oxygen cylinders and hospital beds, verifying these requirements, administering advice, and contributing money — all this and more are happening at high speeds in a society densely connected with each other. In other words, radically networked succour. Often, the term radically networked societies (RNS) conjures up the image of a mob. Admittedly, most examples we’ve cited earlier have depicted the darker side of RNS. However, the term itself is value-neutral and applies to any group meeting these three conditions:a web of densely connected individuals, possessing an identity (imagined or real) and motivated by a common immediate cause.Visualising the online relief efforts through a RNS framework, we see that:* The complete inadequacy of the Indian State became the immediate cause that mobilised community action. As the second wave started hitting near-and-dear ones while our governments continued to be in a parallel reality, people felt that the government’s effectively saying “Apna Apna dekh lo (Fend for yourselves)”. Then came the realisation that the problem has grown too big for our governments to solve. * The speed and scale was provided by the internet, specifically digital media platforms. The hierarchical nature of the State is an impediment in emergencies. That’s where flattened networks excel, spreading information to various nodes at a speed States cannot match. Our social media feeds transformed into emergency response management systems. * The identity dimension is not so clear in the sense that people providing radically networked succour do not define themselves as being a part of any one imagined identity. In some cases, pre-existing identities such as religion have inspired a community response. In others, the sinking feeling that we are all in this together has produced new bridging social capital. One identity that’s been conspicuous by its absence is the electoral and social media apparatus of the governing political party. Being one of the largest political organisations in the world that understands how to harness the power of digital media like few others do, it’s surprising to see it missing in action. One can only guess what came in the way —the arrogance of power, a refusal to acknowledge the problem, or a pre-programmed plan to focus on attacking the opposition?The ImpactThe past few weeks have also made clear the strengths and limits of relying on civil society action alone. The most encouraging lesson is to see that in difficult times, people have contributed in their own little, unique ways that governments can’t. Whether it’s by delivering food to a patient in the neighbourhood, by helping those in need of financial assistance, or by delivering critical medical supplies, the RNS has saved many lives. At the same time, it has also exposed the limits of what a civil society can do. People actively involved in such efforts themselves couldn’t shake off the feeling that they were boiling the ocean — regardless of the growing monetary contributions or the number of hands on deck, the problem seemed to be growing at a much faster rate. The scarcity of life-saving equipment meant that for every one person you could help, another equally — or perhaps more — needy patient was dying.The tragedy has also made it clear that a civil society cannot, by itself, summon newer hospital beds, healthcare staff, and life-saving medical supplies. For increasing capacity on these counts, the role of the State and markets is indispensable. We need the State to do what it should and get out of the way where it must for markets to play their magic. Whichever political ideology we may hold dear, the pandemic should make us realise the need of all three — State, Society, and Markets. Of which, it’s the omniabsent State that should worry us most. The Indian State is small where it really matters and simultaneously, overbearing in areas where it shouldn’t have a role. Until we get the balance between the State, Society, and Markets right, my deep gratitude to everyone who has been providing succour to India and Indians.Global Policy Watch: Three Truths Of IdeologyBringing an Indian perspective to burning global issues- RSJIt must be a sign of times when the apparently honorable and normal act of someone taking a stand for her ideology and paying the price for it becomes global news. It happened last week. The Republicans in the US House of Representatives voted to remove Liz Cheney as the chair of House Republican Conference for her persistent criticism of Donald Trump and his persistent claims of a stolen election. Liz Cheney is no ordinary Republican. She comes from a dynasty that’s long been a pillar of the Republican establishment. Her father, Dick, a former VP, needs no introduction to the Republican base. That she is no longer considered ideologically pure by the GOP is quite remarkable. Now the cynic in me doesn’t for a moment believe what Liz Cheney did was all about her principles. Political ambitions aren’t realised by playing it safe. You must roll the dice when the time is right. She did just that. She staked her future knowing well what the short-term repercussions could be. It is how political careers are made. Truth #1: The Mortal EnemyWhat interests me about the episode is the use of ideology by both sides in justifying their decisions. There’s something to learn about ideology here. This is what Liz Cheney wrote in her op-ed in the Washington Post:“Finally, we Republicans need to stand for genuinely conservative principles, and steer away from the dangerous and anti-democratic Trump cult of personality. In our hearts, we are devoted to the American miracle. We believe in the rule of law, in limited government, in a strong national defense, and in prosperity and opportunity brought by low taxes and fiscally conservative policies.” That last line sums up the Reagan conservative ideology that’s been the guiding light of the party till it was upended it by what can only be called Trumpism in 2015. The reactions against Cheney weren’t about the principles. It involved the first truth about ideology. An ideology needs a mortal enemy, an anti-Christ, to survive. As a prominent Republican, Mike Gallagher, responded:“House Democrats under Speaker Pelosi have been ruthless in advancing their radical progressive agenda, and Representative Cheney can no longer unify the House Republican conference in opposition to that agenda.” It doesn’t matter what we stand for so long as we know what we stand against. Ideological cohesion is easier to achieve in knowing your enemy than knowing your friends. In a famous speech delivered in January, 1962, Barry Goldwater laid down the seven principles of American conservatism. There’s no better articulation of a political philosophy in modern times. It is clear, concise and it helps translate these principles into specific policy proposals. Yet, Goldwater lost in a landslide in the 1964 presidential race. About 16 years later, Reagan used the Goldwater template but with one big difference. He located the enemy in his election campaign. Big government. Reagan would govern based on Goldwater’s principles but he never forgot what builds cohesion in his base. Late in his second term with no further elections to fight and his ideological dominance complete, he continued to fight the enemy with this famous quote (Aug, 1986):I think you all know that I've always felt the nine most terrifying words in the English language are: "I'm from the government, and I'm here to help." Truth #2: The Seed Of Destruction WithinIdeology is the prism through which we view politics. And conversely, it is a collection of values that guide politics to achieve the social or economic ends it believes are right for us. A clear articulation of ideology eases decision making for citizens and lawmakers alike. This is good. But running a state on ideology isn’t easy. The modern state extends itself far and deep into the lives of its citizens. And the demands on ideology to provide answers in every human realm imaginable continues unabated. This stretches any ideology thin. It is impossible to have an ideology that can be consistent and convincing across every aspect of governance - economics, social, legal, foreign policy, science, religion et al. This over-extension is the seed for future destruction of the ideology. And this is the second truth about it. This is the opposite of what Marxists refer to as ‘false consciousness’. Here the extension of ideology across social institutions and over the masses is overt and in a direct sense, the reality. It creates two problems. One, it splinters the ideologically cohesive unit. You could be against gay marriage but you believe in climate change. Since the conservative ideology in the US has extended itself to both these domains with clear views, you cannot hold your positions without a strong sense of dissonance. These faultlines increase in count and deepen over time as ideology permeates the lives of people. Two, as the ideology extends itself too thin, it loses the strength of its core that made it popular. Others then move in to appropriate the core identity. This is what Clinton or Blair did in the 90s by sidling their communitarian-minded parties into the free market positions that Reagan and Thatcher had made mainstream.Truth #3: Finding The SacredThe skill in maintaining ideological dominance over long time therefore lies in understanding the two great threats. First, your adversary is able to paint your core principle as its big enemy by using the changing patterns in the society or the environment. This is what has happened in the US after the global financial crisis (2009) where institutions representing the dominance of free markets and globalisation came under attack first from extreme left and as the notion became mainstream, from the extreme right too. Second, the inevitable loosening of the compact that brought your side together as your ideology stretches itself thin over a wide array of issues. The way to hold off these threats is by finding that one core principle that can be made so sacred that it cannot be desecrated. And then envelope or extend every argument against your ideology into that sacred domain. This is the third truth about ideology. This is what Make America Great Again was about. The ‘American way of life’ exalted to a status so sacred that you can use it to argue against wearing masks, owning guns, pulling out of Paris agreement or proposing to build a mythical wall on the Mexican border. This has been done successfully elsewhere too. In the erstwhile USSR or today’s China, the sacred maxim is that the Party is supreme and the only truth. In countries too numerous to name here, it was nationalism or ‘nation first’. You can draw your own conclusions about India in recent years. Nothing can make the sacred profane. Anything can be justified in its name. Once you have sanctified a principle among the majority of the masses, all you need to do is to manoeuvre any ideological battle to those grounds and you win. This is never permanent as history has shown. But it lasts way longer than any real ideology. Liz Cheney might be fighting for conservative principles of the Republican Party. But the party knows those principles are stretched thin and only the empty yet hallowed slogan of the ‘American way of life’ that Trump has come to represent to its base gives them a fighting chance in elections against the woke progressive agenda they so hate. For all its pretensions, ideology reduces itself to these three functional truths. Find something to hate viscerally, over-extend the shadow of your ideology to all realms of a citizen’s life and protect yourself by sanctifying a core principle within the ideology that cannot be made profane. Enjoy the fruits of power. PolicyWTF: Price Controlling the Pandemic This section looks at egregious public policies. Policies that make you go: WTF, Did that really happen?— Pranay KotasthaneThe term PolicyWTF is too frivolous to apply to the horrendous events of this week such as over 2000 bodies being found along the banks of Ganga or the undercounting of nearly 60,000 COVID-19 deaths in Gujarat.So, this week’s policyWTF award goes to the Kerala government for price capping everything from triple layer masks to surgical gowns. Please note the precision. Inspection gloves are to be priced at ₹5.75, not ₹6 and triple layer masks are decreed to be priced ₹3.9 and not ₹4. While you are at it, have a look at the replies to the tweet as well. Nearly everyone is lauding the Kerala CM and tagging their own CMs to implement similar price controls.It’s easy to anticipate the unintended:* The better quality masks, gloves, and PPE kits will disappear from the shops in Kerala.* Given the continuing high demand for these items, producers from Kerala will try to sell these items in neighbouring states that don’t have such price controls. * Producers from other states will not sell these items in Kerala.* An underground market will develop for these goods. The government will catch a few people and blame rapacious profiteers but where demand exists, supply will find a way. A basic lesson in public policy is that good intentions don’t imply good policies. But we reward activity rather than consequences. HomeWorkReading and listening recommendations on public policy matters* [Video] Slavoj Žižek in conversation with Barbara Bleisch on Ideology. English subtitles available. Žižek is his usual maverick and brilliant self and Bleisch is an outstanding interviewer. Must watch. * [Article] A constitution bench of the Supreme Court turned down the Maharashtra government’s move for Maratha reservation. In a convoluted judgment, it upheld the union government’s law of reserving seats for economically weaker sections, even if the total reservation exceeds 50%. Gautam Bhatia has a clear-eyed take on the issue. For our views, check edition #120. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit publicpolicy.substack.com

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    #126 A Little Boat Adrift 🎧 May 09, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. PolicyWTF: Our Democracy In Wave 2 This section looks at egregious public policies. Policies that make you go: WTF, Did that really happen?- RSJIt is difficult to write anything with clarity when almost every second message you read is a cry for Oxygen, ICU beds, Remdesivir or plasma. This isn’t an exaggeration. This is the reality of every urban Indian today. Yet they are lucky. The ability to amplify is itself a privilege. There are many others going silently into the night; mourned by their voiceless kin but unnoticed, uncounted and unmourned by the state. Because it is inconvenient to even acknowledge them. This is a difficult moment for India. It is not easy to write with perspective and acuity about our criminal neglect of lives while retaining empathy for those on the frontlines of this battle. So, excuse me if I ramble a bit in this edition. No Information, No DemocracyThere’s a lot made about democracy in India. If we were to believe our own hype that is. We have a rambunctious multi-party system. Our elections are festivals celebrating people’s choices. The janata is the janardhan, apparently. For years, the more cynical among us have seen through this charade. Today, the despairing shallowness of these claims are laid bare for all us to see. At its heart, democracy is about availability of information. As information became more accessible and moved with greater speed in the industrial age, societies had to adopt democratic norms. Other choices could only be coercive. Because information is power. It helps you compare, to make informed choices and to hold those in power accountable. It is no surprise then among the first thing any authoritarian regime does is to control information. Information makes democracy tick. Without it, democracy is just a periodic voting exercise.The remarkable thing about India’s pandemic response is the sheer absence of information available to the public. Even the Supreme Court cannot get direct answers out of the government. The number of vaccines we have purchased in advance, the current stockpile we have, the monthly rollout plan we have in mind or the price of the vaccines. Nothing is known. The anticipated number of infections we might have for every district in the country, the future need for Oxygen, ventilators, doctors, healthcare workers or technicians in each district, the real mortality rates, the data on genome testing, the amount of foreign aid or where it is going - the list is endless. There are no past datasets, there’s barely any data being collated now and there’s no forecast for us to plan a better response future even as we see the pandemic spreading to rural areas in India. We don’t have a daily dashboard or targets against which we monitor our response to a virus that’s knocked us over. Administrative incompetence and deliberate official suppression have brought us to this parched information landscape. This lack of information in the midst of a catastrophe renders democracy void. Only a chimera remains. Every living moment is filled with anxiety because you are a step away from being drawn into the Covid apocalypse. You cannot plan even for the week ahead. You cannot judge the actions of the government because there’s hardly any information. You read a news report about foreign aid gathering dust at the airports and the next day the partisans of the government point to another report on how things are moving quickly. In this see-saw battle between information and disinformation, in the midst of this epistemological fog, we have to find the right direction. Democracy is about choice in the hands of people. Choices are made by weighing the arguments put up by either side. Arguments need information. Cut the information supply and democracy gasps for breath. It is not just patients that are running out of Oxygen in today’s India. There Won’t Be Any ReckoningThis also makes the next point that I want to discuss almost irrelevant. Is the handling of the second wave a moment of reckoning for PM Modi and his government? In any normal, functional democracy with rational voters and a modicum of opposition, it should have been. But I’m not sure about it happening in India. First, the lack of transparency or information makes it easy for the government to spin narratives that take away the heat from it. We have already seen some remarkable feats of narrative building in the past month. Merely listing them down inspires awe within me in for the narrative entrepreneurs building them. But it also boggles my mind on how these logically weak or inconsistent narratives aren’t countered with vigour. I have made a simple table below to reflect this. Any reasonable person with an open mind will come to a similar conclusion as I have reached in the table above. But people lose their sense of perspective while thinking about politics. This is an old problem. Why do people find it so difficult to let go of their political beliefs? I don’t want to go into either the philosophy or the neuroscience of this issue in this edition. Some day I will. The short answer is this. People who have agency (in India those that are educated, employed and with means) have a disproportionate belief in the soundness of their judgment. They consider they have arrived at their political beliefs using reason and on their conviction of what’s wrong with the world. This process is deeply personal. It becomes a part of their identity. This causes them to invest emotionally into any politician or a political party that furthers this view. This is different from familial or religious ties that are accidents of birth. This is a product of your own logical mind. A mind that, all things considered, is superior to others. This is the reason why families or old friendships cleave on political beliefs. Even blood is thinner than political faith because the political is personal and vice versa. In India of today, there is a large coalition of people who have invested deeply in PM Modi and his vision of India. This coalition is useful to study to understand why there won’t be a reckoning despite the abject failure of this government to provide the basic right of life to its citizens.First, there are those in the coalition who believe we wasted the first 67 years of our independence pursuing wrong economic and social policies. Merit was stymied, enterprise was killed and a rigid bureaucracy along with a venal state held us back. Among this lot, there are those who are disappointed already with PM Modi today and sit on the fence. The other side of the fence doesn’t make for great company either. The great hope there is in the form of Mamata Banerjee whose only virtue is that she defeated the BJP. Governance isn’t exactly her forte. This is the kind of political thinking that’s got us here. Anyway, the greater number in this section of the coalition are the ones who respond to the ‘system’ is all flawed message. So, PM Modi needs more time to smash this ‘system’ to smithereens. He is forever the outsider for them. Then we have the garden variety bigots of various hues who believe India is held back because the minorities in tandem with global forces are undermining it. They hark back to India’s glorious past and its abiding civilisational values. These are the consumers and distributors of the millions of fake messages churned out by the WhatsApp factories. The general consensus here is a thousand years of ‘foreign’ rule set a superior but somewhat naïve race back. Our path to salvation lies in showing these ‘foreigners’ their place while going back to those civilisational values. In PM Modi they find a man who will set us on the path to deliverance. And the final section includes those who have a nuanced view that our civilisational values can be blended with modernity to arrive at a modern conception of Indian state that’s different from the Nehruvian one. Indeed, I think this can be a worthwhile project. But it needs a philosophical and cultural articulation of our values that is in sync with the current reality of a diverse India and a modern world. And it has to be compelling enough to rewrite the constitution in a way that won’t fracture society. To draw an analogy, it needs clear thinking of the likes of Paine, Burke or Montesquieu with the civilisational understanding of Vivekananda or Aurobindo. That’s a tall order. Instead they have the likes of Sadhguru and Rajiv Malhotra to aid their efforts. In any case, in PM Modi, they have the anti-Nehru at the helm. And that’s good enough for now. The despair about the future of India that’s often written by a section of commentariat these days might be overblown. We have lived through terrible political and economic choices for many centuries. We will survive. Not thrive. And that’s tough to swallow. We had a window of opportunity to realise our potential as a nation and to improve the lives of our people. We could have been a contender. It is all in the past now. But to most Indians today it doesn’t matter. A tendentious reading of the past and a majoritarian fantasy of the future has clouded our judgment. Form takes precedence over substance. Appearances matter more than truth. No surprise then to discover the final counter to any political argument in India today is - aayega to Modi hi.India Policy Watch: What Matters and What Doesn’tInsights on burning policy issues in India— Pranay KotasthaneThe Union government has received a lot of flak over its criminal negligence in managing the pandemic response. It deserves nearly all of it, and more. We have written about this over several editions.Today however, I want to look at three incorrect — or at least problematic — frames being used to blame the government’s pandemic response, shoddy as it is. The intention is to ask the right questions. Only then can we hope for the right answers. Incorrect Frame #1: Blame Vaccine DiplomacyAs the cases have skyrocketed and vaccine supplies have plummeted, India’s vaccine diplomacy has come under the scanner once again. The question doing the rounds is that did India commit a grave mistake in gifting vaccines to other nation-states? With the benefit of hindsight, the dominant narrative today is yes, by prioritising vaccine exports over domestic inoculation, India did a disservice to its own people.I disagree. In edition #102, I made a realist case for India’s vaccine diplomacy. I stand by that view. The original sin of the Union government, of course, was that it didn’t place enough vaccine orders and hasn’t done so even until now. Rewind to February and you’ll notice how complacent the government was of having conquered the virus had peaked. It seemed that the government would sail through a dying pandemic with a snail paced vaccination campaign. It is with this line of thinking that vaccine diplomacy began.Another way of thinking about vaccine diplomacy is to think of its opportunity cost. At the current vaccination rate, India would’ve had five additional days of supplies had it not given any of the nearly 10.7 million doses as gifts to other countries. In fact, a majority of the deliveries (nearly 35 million) have been under commercial terms between manufacturers and other countries. It’s likely that countries would’ve not helped India in the current crisis the way they did had India blocked exports of vaccines earlier.Holding the Union government accountable for its mistakes is important. Equally important is identifying what the exact mistake was. By internalising that India was wrong in extending its help to other countries in its own time of help, we would be learning the wrong lesson. Such heuristics tend to stick around for long in the Indian strategic affairs community. Try arguing for developing overseas operations military capability of any kind and the idea will be shot down citing the IPFK failure in Sri Lanka more than three decades ago. It’s important that vaccine diplomacy isn’t perceived as another IPKF moment. This pandemic is as much about learning the right lessons as it is about not learning the wrong ones. Incorrect Frame #2: “ದುಡ್ಡಿಲ್ಲ” Government Has No MoneyNero fiddled while Rome burned. How we love this story. Every ineffectual leader in the times of crises gets equated to Nero. This time around, the charge of callousness rests on the government’s plan of redeveloping India’s central administrative area at a reported cost of nearly ₹20,000 crores. The critiques argue: can’t the government redirect some of this money for increasing the number of hospital beds, oxygen plants, and vaccine procurements? — problems that are dire and important today.From a political perspective, this line of attack probably makes for a powerful narrative. I wouldn’t know. But wearing a policy analyst’s hat, this logic makes little sense. That’s because the government has enough monetary resources at its command for fighting the pandemic and building a new parliament, both.Facts of the matter first. The ₹20,000 crores amount is to be spent over multiple years, of which less than ₹2,000 crores is being spent this financial year. For perspective, this is 0.05% of the Union government’s FY21-22 budget.Moreover, such arguments asking for diverting money from one purpose to another play in the hands of the government by inadvertently giving it safe passage as long as it can show monetary constraints. The truth of course is that the Union government has enough options at hand to beg, borrow, and steal money for fighting the pandemic. The State as an institution is unparalleled. It doesn’t easily run out of money like households do. If it does, it always has the option of monetising deficit (albeit at the risk of future inflation). And if there ever was a case to be made for monetising deficit, a raging pandemic would definitely make the cut. After all, what is the use of a democratic republican State that cannot spend to protect the life of its citizens dying by the thousands every day?In fact, after a lot of hullabaloo about how asking the states to procure vaccines from manufacturers might lead them to fiscal troubles, most states, — including low-income ones such as Bihar and Odisha — have promised free vaccines to all adults in the 18-45 age group. As an example, we estimated that Karnataka would require approximately ₹3900 crores to vaccinate all its residents in the 18-45 age group for free. Of which, ₹3176 crores can be borrowed immediately by using RBI’s Way and Means Advance facility. Don’t listen to government excuses over money in these times. PS: As far as the Central Vista Redevelopment Project is concerned, India would indeed need a new parliament a few years down the line once the delimitation of constituencies takes place in accordance with the 2031 census (thanks to a helpful reader, Kamil, for dispelling my belief that delimitation would happen in 2026). This is not a new demand and India is capable enough of funding the redevelopment of a small pocket in Delhi even as it fights a pandemic. PPS: It beats me why the government could not postpone the Central Vista Redevelopment Project until the second wave peaked. That would’ve been prudent. Incorrect Frame #3: The Liberalised and Accelerated Phase 3 Strategy is to be blamedThe move to allow state governments, private hospitals, and industrial establishments to procure vaccine doses directly from the manufacturers has been under fire ever since it was announced. The criticism is on two counts. One, this approach would lead to confrontation between state governments seeking better deals from manufacturers. Two, the Union government can use its scale to strike better deals with both domestic and foreign manufacturers.The so…

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    #124 Flailing Again 🎧 Apr 18, 2021
    Show notes

    Programming Note: We are taking a short break. Back on May 2. Stay safe.While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.Audio narration by Ad-Auris. PolicyWTF: Winging the PandemicThis section looks at egregious public policies. Policies that make you go: WTF, Did that really happen?- RSJOne of the things we often say around here is how difficult it is to craft public policy. The process requires diligence in collating evidence, intellectual integrity in comparing the options and trade-offs, anticipating the unintended, planning for implementation, mapping the stakeholders and communicating to all of them. You know the drill. Importantly, a lot of these decisions have to be taken when the future is unknown and there’s uncertainty all around. Your assumptions could be off the mark or unforeseen events could derail your plans. You cannot do much when you are dealing with ‘unknown-unknowns’. You have to opt for the best policy course while dealing with the ‘epistemological fog’.This is one of the reasons why we don’t do a post-mortem of a policy decision with the benefit of hindsight. We call out a policyWTF the moment we think we have spotted one. And then go back to it as the future unfolds in line with what we had anticipated or differently. But if I do have to analyse a policy response of the past, I follow what I refer to as the ‘retrospective case study’ method. It is a simple tool dealing with only the ‘knowns’ and I will use it to analyse India’s Covid-19 response. As India deals with a second wave with its healthcare infrastructure struggling to keep pace, the question that everyone is asking is how did we get here? Maybe this tool will help us with few plausible answers.Here’s the case studyImagine you are in mid-March 2020. There are a handful of Covid-19 cases in the country. You have to put an emergency response plan. Like I mentioned before we will only deal with the ‘knowns’ at the time of response (March 2020) to avoid hindsight bias. So what are the knowns?About the virus. You know the virus is infective (R0 is high) and the cases rise exponentially as already seen in Italy, Spain, USA, UK etc. The healthcare systems in these countries weren’t prepared for it. They buckled under the load. The ultimate cure is prevention. And the best tool for prevention is a vaccine. You know there are research efforts on in USA, UK and China. It is clear any vaccine will take atleast a year to be available for commercial use. This is a wildly optimistic scenario. You also know there’s a drug (Remdesivir) that has moved to phase 3 trials as a cure for Covid-19 infection. Lastly, almost every expert warns there could be more than one wave of infections as has happened with Coronavirus pandemics in the past. The virus mutates and not always to a less virulent version. So, it is likely this pandemic will see a few waves with mutants before vaccines or herd immunity brings it under control. About India. You also know the challenges unique to India. The healthcare infrastructure is woefully inadequate. It ranks in the bottom quartile globally on hospital beds, doctors or paramedical staff on a per capita basis. The population is much larger with dense, cloistered urban clusters that are ideal for the spread of the virus. You also know its relative strengths. People comply with government orders. It is the vaccine factory of the world. And the elected government is strong and stable with an extremely popular PM. For a moment keep the economic impact of decisions or the fiscal position of the government aside. Just focus on the health and well-being of the citizens. Based on the knowns that are available with you at that moment, what will you do?I guess the simple policy response would have been: * A lockdown to slow down the spread and to prepare the healthcare infrastructure to manage the eventual waves. This would mean creating additional capacity for hospitalisation, procuring testing kits, ventilators, oxygen cylinders and training people on paramedical activities during the lockdown.* An ongoing effort at stockpiling the above once lockdown is lifted to manage the peak caseloads. A measurable set of metrics to assure the state and union governments about the inventory of these items on an ongoing basis. Continuing to be in this semi-permanent state of readiness till most Indians are vaccinated and herd immunity is achieved. Remember there are always subsequent waves as the past has shown.* Advance Purchase Commitments for various vaccines candidates that are going to be in play. Maybe a similar arrangement for stocking up Remdesivir. This is critical given India’s population. Securing the supply of vaccines is the key. And then an initial plan for inoculating about a billion Indians in less than a year whenever the vaccine is ready. This is a non-trivial exercise. I would say that’s probably it. This is the most you could have done a year back. Everything else was unknown. It is possible the whole thing could have blown over and all the preparations would have been in vain. Or things would have turned out worse than we imagined. Indians might have been careful and followed all protocols. Or not. The virus might have taken a toll on the seniors. Or not. Winters might have been worse. Or not. We would have a single wave. Or four. Or more. Who knew? You could have only done so much then.How have we done a year down the line on them as a second wave rampages its way through India? What We DidFirst, we locked down in a way that created another humanitarian crisis. That apart we used the lockdown to build some additional healthcare capacity to manage the rise in cases. After some policy missteps, we got our act together on temporary Covid care centres, PPE and testing kits, ventilators and masks. But that was about it. We didn’t have a measurable metric to track the inventory of the key items to assure us to manage any future peaks or waves. It was never enough but we managed this time. Soon we ran through the inventory and barely replenished them. No one knew because no one was tracking. We are world champions in winging it (or jugaad as we have mythologised it) and we thought we had gotten over the pandemic with it. Till the second wave arrived and we were back where we started. No testing kits, oxygen cylinders, ventilators and an overburdened healthcare workforce. Second, like on many other occasions in the past, we declared premature victory. One of the abiding memories of my childhood is Javagal Srinath and Venkatapathy Raju dancing in celebrations mid-pitch instead of running the three runs that would have tied a World Cup (1992) game against Australia. They thought the ball had sailed over the ropes. What’s more, the fielder, the ever-reliable Steve Waugh, dropped the catch and gave us a fighting chance to run the three runs. Waugh rocketed a throw back to Boon and Raju, predictably, fell short of the crease while going for the third run. No providence wasn’t sufficient for our overconfidence. We were hitting daily global peaks in August and September. We came through that period relatively unscathed. The mortality rates remained low for reasons unknown. It was providence much like Steve Waugh dropping the catch. But we started celebrating our victory like we had done something special to beat the virus. The case count went down as mysteriously as they had gone up. We declared we had herd immunity. We started hero-worshipping. And we were out and about. To complete the circle on cricket, we even had two T20 matches with over 60,000 in attendance in March played out at the Narendra Modi stadium. That bookended our premature celebrations. Third, and this is a cliché that has held over time: other countries follow evidence-based policy making; in India we have policy-based evidence making. We have a phalanx of experts, op-ed writers and intellectuals who justify every policy decision with evidence collated after the fact. For the past few months, we have seen numerous articles that suggested we had done almost everything right in handling the pandemic based on retrospective evidence at that point in time. Unfortunately, the wheel turned and reading them today is a stark reminder of intellectual bankruptcy in India. There were no questions asked about our vaccine readiness. Did we secure them in advance? Are we making sure we have a supply of vaccines to inoculate most Indians as early as possible? Is the government really ‘donating’ vaccines in the numbers mentioned in media to other countries? Are we being careful about the virus mutants? The questions could have been many. None of this was discussed in depth. Instead, we were preening about how ‘Indian vaccines’ and the PM were saving the world from Corona. We appropriated Covishield as ‘Indian vaccine’ and it almost seemed like India had run Operation Warp Speed to fast-track vaccine development for the world. Last weekend the Ken covered India’s vaccine policy with depth and insight. The contrast between the US and the Indian policy response couldn’t have been starker.So, here we are today. In the middle of a second wave for which we seem to be worse prepared than the first. We can blame people for being irresponsible and letting their guards down. Or we can wheel out data to blame the state governments we don’t favour for this wave. Or we can say nobody could have seen this coming. None of this is going to change the reality on the ground. You know the truth. But then the truth is the first casualty during a crisis in India.PS: Even as we write this edition, the government gifts us another policyWTF: a price cap on Remdesivir — a drug that’s in high demand and short supply. You all already know what to anticipate next. PPS: This is the birth centenary year of Sahir Ludhianvi, one of our greatest poets and lyricists. In Guru Dutt’s Pyaasa (1957) he wrote these immortal words which seem apt for the current times:यहाँ इक खिलौना है इसां की हस्तीये बस्ती हैं मुर्दा परस्तों की बस्तीयहाँ पर तो जीवन से है मौत सस्तीये दुनिया अगर मिल भी जाए तो क्या है? India Policy Watch: Three Levels of Discussing AmbedkarInsights on burning policy issues in India— Pranay Kotasthane14th April every year is celebrated as Ambedkar Jayanti. I happened to be on a Hindi TV panel discussing Ambedkar’s economics. That experience made me reflect on the three levels at which discussions on Ambedkar take place in India. Level 0: Hero-WorshipI call this the zeroth level because discussions at this level aren’t even about Ambedkar’s ideas. They are about raising him to demi-god status, statue included. It is indeed ironic that a person who warned India and Indians of the dangers of hero-worship has been put on pedestals across the country. To the hero-worshippers, these lines from his Grammar of Anarchy speech are a perfect answer:“The second thing we must do is to observe the caution which John Stuart Mill has given to all who are interested in the maintenance of democracy, namely, not "to lay their liberties at the feet of even a great man, or to trust him with power which enable him to subvert their institutions". There is nothing wrong in being grateful to great men who have rendered life-long services to the country. But there are limits to gratefulness. As has been well said by the Irish Patriot Daniel O'Connel, no man can be grateful at the cost of his honour, no woman can be grateful at the cost of her chastity and no nation can be grateful at the cost of its liberty. This caution is far more necessary in the case of India than in the case of any other country. For in India, Bhakti or what may be called the path of devotion or hero-worship, plays a part in its politics unequalled in magnitude by the part it plays in the politics of any other country in the world. Bhakti in religion may be a road to the salvation of the soul. But in politics, Bhakti or hero-worship is a sure road to degradation and to eventual dictatorship.”Level 1: Political IdeologyThe first level of discussion on Ambedkar the intellectual is about trying to place him into an ideological category. Was he a Socialist? Was he a left-liberal? Was he a nationalist who opposed Pakistan? Or was he a capitalist because he argued for industrialisation? — these are some common questions that characterise this level. Such an exercise is disingenuous because he was none of the above. If anything, he was foremost a pragmatist. But because he has left behind such a rich body of work, it is always possible to pick one quote from him in order to slot him in your favourite ideological category. In the process, what’s forgotten is what he wrote in the only election manifesto he ever wrote, for a party he founded:“The policy of the Party will be to try to give effect to the principles set out above. The policy of the Party is not tied to any particular dogma or ideology such as Communism, or Socialism, Gandhism, or any other ism. The Party will be ready to adopt any plan of social and economic betterment of the people irrespective of its origin and provided it is consistent with its principles. Its outlook on life will be purely rational and modern, emperistic and not academic.”Surely, what he wrote in the manifesto of a party he founded needs to be given more weight than his advocacy for insurance nationalisation, cooperative farming, or even rapid industrialisation. Moreover, Ambedkar wrote widely and often changed his views. Hence, to pull out a quote by him to prove he was on ‘your side’ is rendered moot by another Ambedkar speech that seems to be saying exactly the opposite. If there’s one quote of his that needs to be internalised before falling into this trap, it’s this:“To a critic who is a hostile and malicious person and who wants to make capital out of my inconsistencies my reply is straight. Emerson has said that consistency is the virtue of an ass and I don’t wish to make an ass of myself. No thinking human being can be tied down to a view once expressed in the name of consistency. More important than consistency is responsibility. A responsible person must learn to unlearn what he has learned. A responsible person must have the courage to rethink and change his thoughts. Of course there must be good and sufficient reasons for unlearning what he has learned and for recasting his thoughts. There can be no finality in thinking.” Level 2: The ThinkerThis is the level where we engage with Ambedkar’s ideas, specifically his reasoning. It’s not always possible to engage at this level with all thinkers’ ideas. As you explore their arguments, you hit a dogma they hold dear pretty soon. It is in this respect that Ambedkar’s writing sets itself apart.His argumentation style often follows a purva paksha approach i.e. he starts by articulating the best-case arguments made by his opponents. He then proceeds to dismantle them one after the other. While doing so, he builds his own case logically and explicitly. This means that you can trace the causal chain of his ideas and clearly locate your point of disagreement without having to paint him in any one ideological hue. Take his ideas on the cause for poverty in India, for example. He clearly writes that poverty in India is a double-edged problem of low productivity and high population. He then identifies rapid industrialisation (private and public) and state-led mechanisation of agriculture plus cooperative farming as a solution for increasing labour productivity. To control the population, he argues for birth control and even ‘more drastic measures’ if need be. As someone reading Ambedkar today, I can argue that population is no longer a problem for India today. The birth rates are steadily converging towards replacement rates, and hence any drastic measures would be…

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    #123 Lost In The Kumbh 🎧 Apr 14, 2021
    Show notes

    While excellent newsletters on specific themes within public policy already exist, this thought letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways.

    Audio narration by Ad-Auris.

    - RSJ

    By now many of you must have seen the pictures from the Kumbh at Haridwar. Till last evening, almost 3 million devotees had congregated at the Har ki Pauri for the shahi snaan (how long before we change the word ‘shahi’ there?). A lot has been made about the Covid protocols that were put in place for the Kumbh. It is safe to say it is almost impossible to maintain those protocols for such a crowd.

    Like always this has drawn predictable responses.

    The ‘liberals’ have compared the way media and many from the current dispensation demonised a markaz that was organised by the Tablighi Jamaat last March and how differently they are covering the Kumbh today. A lot of commentary in the early days of the pandemic last year was about the irresponsible members of the Jamaat who congregated at the time of a pandemic and then blamed them for the spread of the virus in the country. The ‘liberals’ contrast that with the cautious, almost benign, coverage of the Kumbh that has millions risking their lives in a likely ‘superspreader’ event.

    The defenders of the Kumbh (right-wing, conservatives or any other label you might apply to them) have their arguments ready. The parallels with the Jamaat event are false. This is a planned event with the administration taking all precautions. Also, the devotees are out in the open which is safer than the enclosed markaz event. I will leave you to see the pictures and draw your own conclusions. Also, there’s the classic conservative defence that’s put up. This is a matter of an individual and their faith. Nobody is coercing them to go to the Kumbh. Our traditions and our culture are our inheritance. These are important for our well-being and they keep us going as a society. As Burke would have put it, some illusions and prejudices are socially necessary.

    I’m not interested in the arguments of either side. These are mostly transient and change depending on the context. For instance, I’m almost certain there will be instances of Covid violations during the month of Ramzan which is upon us and during Eid. Then these arguments will flip. And yada yada yada.

    What Explains Irrational Behaviour?

    The question that interests me is what is the underlying impulse that prompts devotees, adherents of a cult or fanatics of any kind to put the interests or customs of that group over their personal safety and evolutionary instinct for survival? Why do we do stupid things in groups? For a moment leave aside the the sagacity of the government that allows for an event like Kumbh during a pandemic. Ask why have over three million people supposedly taken leave of their senses and gone there?

    And that brings me to a topic that sets off evolutionary biologists, sociologists and philosophers on the warpath. The question of Group Selection or what’s has been updated to be called Multilevel Selection Theory.

    The overwhelming consensus till the 90s was that natural selection acts on genes. Each gene, or ‘selfish gene’ as Richard Dawkins would put it, tries to perpetuate itself. An individual is the result of the selection of many such selfish genes. Natural selection, therefore, acts in the domain of an individual. Nature selects those genes that are adaptable and individuals with those genes carry them forward for future generations. Others fall by the wayside.

    But there was always a separate strand of thinking that stayed in the shadows of evolutionary biology - Group Selection.

    Darwin himself had hinted at it in The Descent Of Man:

    “Now, if some one man in a tribe, more sagacious than the others, invented a new snare or weapon, or other means of attack or defence, the plainest self-interest, without the assistance of much reasoning power, would prompt the other members to imitate him; and all would thus profit. The habitual practice of each new art must likewise in some slight degree strengthen the intellect.

    If the new invention were an important one, the tribe would increase in number, spread, and supplant other tribes (emphasis ours). In a tribe thus rendered more numerous there would always be a rather greater chance of the birth of other superior and inventive members. If such men left children to inherit their mental superiority, the chance of the birth of still more ingenious members would be somewhat better, and in a very small tribe decidedly better.”

    The Wilsons And Their Russian Dolls

    Anyway, as I said, group selection was not considered seriously by biologists for most of the last century. In the last two decades, however, there’s been a renewed interest no thanks to the works of E.O. Wilson (Harvard U.) and David Wilson (Binghampton U.). For them, evolution is as much a team sport as it is a battle for survival among individuals. An individual with favourable traits passes their genes to the next generations. But this could happen at more aggregated levels of biological hierarchy as well.

    Simply put this means there could be certain group-level traits that enable a group to survive or thrive better than other groups. These groups adapt better and perpetuate over generations while others fall away.

    The ‘Wilsons’ explained the multilevel selection using the Russian matryoshka dolls (extract below from the American Scientist Sep-Oct, 2008):

    “To think clearly about group selection, it is important to compare the survival and reproduction of individuals in the right way. The problem with "for the good of the group" behaviors is that they are locally disadvantageous.

    A prudent member of the herd might gain from conserving resources, but cheaters within the same group gain even more. Natural selection is based on relative fitness. If solid citizens are less fit than cheaters within their own group, then something more is required to explain how they can evolve in the total population. That something is a positive fitness difference at a larger scale. Groups of solid citizens are more fit than groups of cheaters.

    These interacting layers of competition and evolution are like Russian matryoshka dolls nested one within another. At each level in the hierarchy natural selection favors a different set of adaptations. Selection between individuals within groups favors cheating behaviors, even at the expense of the group as a whole. Selection between groups within the total population favors behaviors that increase the relative fitness of the whole group—although these behaviors, too, can have negative effects at a still-larger scale. We can extend the hierarchy downward to study selection between genes within a single organism, or upward to study selection between even higher-level entities. The general rule is: Adaptation at level X requires a corresponding process of selection at level X and tends to be undermined by selection at lower levels.

    This way of thinking about evolution is called multilevel selection (MLS) theory. Although the term "multilevel selection" is newer than the term "group selection," the Russian-doll logic has been present from the beginning, going back to the works of Darwin.”

    Back To Kumbh

    I have my scepticism about multilevel selection theory. Stephen Pinker wrote a terrific essay - ‘The False Allure Of Group Selection’ - refuting the theory in The Edge (June 2012). The essay and the comments that followed are quite simply the best debate you can read on this topic. It is also a good example of how good the internet can be.

    I agree in large parts with Pinker but there are days when I see the events around me and I think this must be group selection at work. That we humans reached where we are today because of certain group traits that worked for us. Empathy, solidarity, the ability to forge a common belief, to work for a unitary purpose or have a shared slate of intentions - these are what made us unique and accelerated our evolution.

    Maybe religion works that way for people. It is the most cohesive of groupings (atleast monotheistic religions are).

    It is coded within us that coming together and sharing common, deeply held beliefs - about a supreme being, about how the world works or how to lead our lives - all help perpetuate our group. We thrive through these communitarian traditions and practices that are passed down to us over generations than staying apart, fending for oneself alone and letting selection play out at an individual level.

    We are programmed to preserve our group traits because intuitively we know they have helped us come this far. They might or might not take us from here to wherever we want humanity to go. But our instincts won’t allow us to abandon what has worked for us so far.

    As David Wilson famously put it:

    “Selfishness beats altruism within groups. Altruistic groups beat selfish groups. Everything else is commentary.”

    That alone can explain why people act in ways that go against their own survival instinct. There is a broader instinct to perpetuate at play. That’s what drives millions to the Kumbh. That is what will drive many to community Eid prayers later this month. That’s why your mom still wants to attend that family wedding in the middle of the pandemic. They aren’t being foolhardy.

    They know their importance. They can’t explain it to you.

    They just can feel it in their bones.

    HomeWork

    Reading and listening recommendations on public policy matters

    * [Video] Jonathan Haidt on The Groupish Gene: Hive psychology and the Origins of Morality and Religion. Haidt is simply a brilliant explainer of multilevel selection theory (as he is of other things).


    This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit publicpolicy.substack.com

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