Friday, June 19, 2015

Entrepreneurial Solutions to Behavioral Problems

There is a growing trend today that tries to solve behavioral problems, determined by the state and surroundings we are in, through entrepreneurial means. Let me explain it with two examples. First one is related to the perceived attempts from politicians on the street to saints in the jungles to protect planet through afforestation by planting saplings ranging from one to millions. I am not against this efforts or not debilitating its relevance whatsoever.  Instead, my argument is that this kind of efforts to increase the green cover of the planet is sub-optimal as there is alternative optimal and less celebrated method to expand the green cover. That is reducing deforestation. The effect of not meddling with functioning of the nature and thereby allowing expansion of the green cover on its own is far stronger and effective than that of human driven afforestation drive. Restrict the intervention of the human being on the nature followed by sensitization efforts ; nature will take care of itself.  It is here we have to see the difference between behavioral problem and entrepreneurial solution.  Felling of trees and mindless destruction of green cover is essentially a behavioral problem. One who has a mind to love environment and enjoys its beauty cannot destroy it. He/she cannot accept the indiscriminate destruction of green cover.  He/she will be at pain upon seeing such wanton behavior. That is, such a state of mind will treat a tree as one among us with a soul and blood. The destruction of forests today is mainly driven by pecuniary motives of human being which has made the minds of people hard and numb.  Thus, the issue is behavioral. However, the solution that we celebrate is entrepreneurial in the form of politically driven massive planting campaign. One can easily mobilize a group of people and organize a mega plating bandwagon that too in front of camera to achieve intended quick-return whereas taking oneself to the course of allowing nature take care of itself without permitting others in meddling in its natural functioning would be a enduring struggle. Once again, let me reiterate that I do not hold the view that efforts of tree planting are fully sans results. Along with such campaigns, we should have devised a strategy and plan to influence the behavior of the people, sensitize them and thereby develop a mindset which enables them to treat trees like one among us wherein restriction will pave way to restraint. We need restraint to solve this menace.
The second example is Modi government’s swatch bharath initiative. Here one instance of entrepreneurial solution that this government has sought is the construction of toilets. Of course, I do appreciate the compulsions of competitive politics which might have influenced such short term pursuits. Having said that let me submit here that if India still remains to be stingy and filthy, it shows that something is rotten in the system and we are breathing the stinky air generated in it. I mean the real problem is somewhere else.  Indeed, India as a democracy has had achieved many milestones in the past. However, that does not mean that we have lived up to expectations. I mean that until India liberates its true claimants in the form of ordinary people from the clutches of poverty, deprivation and destitution India will remain to be stinky. There are two reasons for this. First, such a destitute would have other more important preoccupations in the form of trying to meet the ends of their life which often makes them unable to remain clean. For instance, a hapless working woman with a toddler will be forced to take her ward with her to the work site and where she will find time to take care of her baby, for example, from flies? Her kid would be toddling in the mud, could be relieving of the basic necessities around and all these would be termed as unhygienic by those whose kids have palatial mansions floored with costly ceramics. The point I am making here is that poor people are in a sense helpless to remain so called hygienic on account of their real life compulsions.  Certainly there must have a debate who pollutes the most? While one can use fuel guzzling luxurious vehicles contributing to country’s pollution according to their whims and fancies, our pre-occupation solely with those who openly defecate should also be debated.  Secondly, the hygiene is a behavioral issue which gets shaped up by the socio-economic environment as outlined above. That is why it was reported even after construction of toilets, people are hesitant to use them as they find it comfortable to relive in the open.  This means that an entrepreneurial solution in the form of construction of toilets will be a failure to solve a behavioral problem. Apart from that, the massive drive to clean India raises the question of who will undertake cleaning. Can we consider cleaning effort in isolation from India’s prevailing social system? Can we expect members of upper caste communities be scavengers in Indian cities? If answer is no, it means that the problem of filth in modern India can only solved with a solution suggested by Mahatma Gandhi who suggested that everybody should be their own scavengers. This great well-thought-out solution has addressed both social and behavioral aspects involved in the maintenance of hygiene. Specifically, regarding social aspect, if everybody cleans their surrounding, then the customary practice of treating those at the bottom of social hierarchy as the potential scavengers could be automatically disappeared. Concerning behavioral aspect, nobody would clean his surroundings without such a bend of mind or a positive attitude to do so.  Thus, to make India’s geographical surface and air clean and tidy, government along with short term measures, must also try to make India’s socio-economic scenarios clean from all evils it has been suffering from over the years.  This would help to change the attitude of the people which is the only effective way to bring about revolutionary changes.

(Views expressed here are in an academic spirit and therefore, need not attach any sort of sympathy and antipathy to it)

Monday, March 9, 2015

Reconciliatory Economics

Conventional Economics is primarily pre-occupied with optimization of the use of limited resources. Optimisation is actually the outcome of both maximization and minimization. For instance, produce as much as possible with available resources is the motto of the conventional economics. To achieve this, producers, on the one hand, maximizes their revenue or profit for which they, on the other hand, minimizes cost of production. However, today it appears that economics as a branch of knowledge must revisit it’s this approach especially in the face of issues like environmental implications of such optimizing approach.  In other words, environmental implications of the hither to followed economics with its obvious inclination to production spree has already started ringing the alarm bell to the world. Simply put, this beautiful planet said to be billions of years old is now being pushed to the brinks of its own extinction due to the erroneous economic approach driven by rapid industrialization since the beginning of industrial revolution about three hundred years ago. International bodies like UNO have already warned the world that if carbon emission goes on unabated, then by 2060 this planet will have encounter debilitating catastrophe.
Given such a background, the obvious question is what should be done? The simple answer is to change the economic approach. In other words, from the traditional optimization approach, economics must embark on reconciliatory approach. Optimization approach is developed at a time when there were no factors or forces which must be taken care of in this process of optimization. When the motto was expand the production, it was not a matter of concern then how this expansionist approach will affect, for instance, ecology simply because we were just beginning to produce and therefore, its detrimental effect were not felt. But today picture is entirely different. We have already enough evidences in front of us indicating that matters are going to be worst.  In other words, our expansionist economics approach has given birth to forces which have already begun to work against the same system responsible for its emergence. Therefore, today’s economics can no longer afford to continue with production spree disregarding such noises. In other words, economics has to assume a balancing approach in its endeavor, what so ever be.
Consider ‘make in India’ initiative. Certainly, if such an initiative is truly pursued and made a true experience will be of great use for the people as it will ensure jobs to them. But there is flip side to this. Where to find the resources such as energy for such a massive expansion of production in India? There are two obvious ways to find energy resources. One is to exploit available resources in the country like coal and minerals. However, this solution is half-baked as it will either displace people from areas where these resources are deposited or the very mining of such resources is not sans with its environmental implications like deforestation. Second, country can import fossil fuel like oil to meet its energy requirements.  But, can we economically afford it and even if it is affordable, can we afford to bear its environmental impact? Thus, authorities must think twice when they come with such policies and initiatives which are essentially driven by the traditional economic approach. That is, this ‘make in India’ approach, for instance, fundamentally belongs to traditional economic approach as it envisages massive production expansion in India disregarding its environmental or social implications.

Having said all these it is imperative to put in perspective what is this ‘reconciliatory economics’ all about? This is all about adopting a reconciliatory economic approach to accommodate conflicting interests which involves primarily two things. First, go back to agriculture by way of giving primary consideration to fostering agriculture. Expansion of agriculture will ensure that people have food security, jobs and after all thriving agriculture will foster environment. This does not mean to side-line industrial sector or service sector.  Instead, shape up and promote agro based industries instead of focusing on such industries dictated by forces of greed in the market. For, it is spreading havoc both for the health of the society and environment. For example, instead of promoting products like junk food, promote value added products produced from agriculture outputs which will guarantee jobs at the same time products will be health friendly.  For this state must play a key and proactive role with a stated mission of promoting industries for the benefit of the society like providing jobs instead of aligning with greedy market players. Second important component of the so called ‘reconciliatory economics’ is to encourage development of environment friendly technology. For this also government must encourage rigorous innovative researches and overhaul the current system of education as a whole and higher education in particular in India. Thus, this new approach calls for a new attitude from all walks of life such as education, government, industrialists etc. Or earth will be a proverbial planet for those who will be in Mars by 2060.