Optimizing Value in Economic Governance

Dharm Narayan, an agriculture economist of repute whose concern for growing agricultural crisis amidst the rapid growth of Indian economy have already made deep impact in the realm of policy and research. Listening twelfth Dharm Narayan Memorial Lecture in his fond memory at India International Centre {September4, 2010, New Delhi} was insightful as the theme lecture delivered by Kaushik Basu {Chief Economic Advisor, Ministry of Finance, India} touched and apprised on generally considered forgotten issues.
In the era where value and social norms as an underlying of mainstream economics being frequently forestalled and reality shunned more than anything else-only wiping out of misunderstanding from the world of money can minimize the chances of impending consequences.

Kaushik’s meticulous choice between following the Greek philosopher Piero’s mode of skepticism and J.S.Mill’s very dear quotation “you have to live with waves and winds to live better” is indeed appears a fine forethought until we found ourselves in the company of credible theorists-away from vileful practices of popular politics. Though in standard economic theory too, large scale trade maximizes the conditions of monopoly and oligopoly-like political machinery, economic machinery equally rely on confederates to attain prefixed tempting goals. Interestingly, sometimes politicians and economists together spent decades to unlearn the lessons of historic blunders and shown determination to repeat all the previous mistakes.
For proving that, we don’t have to roam too much, as great depression of 1930’s could be assume as reference point and present ongoing world wide financial crisis as silly repetition of same basic flaws. In a country like ours, where90%of total work force of about 433million is employed in unorganized sector with poor pay no socio-economic security; there is an immediate need to rationalize the existing labour laws with anticipating the modern challenges of economy.

Economic theories can convince the government and also realize expected goals from it albeit to an extent only. Real driving force ultimately come through the social ideas and beliefs and that have no parallel in value term over shaping the economic policies-Indian economy sitting on the cusp of economic surge needs an equal makeover of value system based on own expertise and specific needs without blindly chasing the bandwagons and tailor made principles of western countries. Nehru rightly sensed it in his 1920’s speech-power of idea can move.
John Maynard Keynes too came with similar thoughts in 1926; at least in theoretical domain, two epoch-makers of politics and economics laid stress on better place for rational ideas than extraneous greed’s. Absence of practical support in machinery remains kingpin to handicap such positive stances…many of us may not have pastime for parable but we shall not extrude rationality from our basis thinking-unfortunately such behaviors could be the flash-point of managed chaos.

Among our many fault lines, inadequate professionalism and relentless growing corruption are haunting us like never before; our acceptance in next phase at world arena wouldn’t be succeeded with such rogue practices. We needed radical shift in overall governance that can ensure us a public life without grappling with the culture of hype and sinister loitering in an alien uneven terrain.
Despite not being a die-hard admirer of Chinese policy, for me it was amazing to see their hard efforts over the decades to improvise the governance standard in their country and configuring a balance work culture without nurturing the sycophants and Hippocrates like ours in every sector whose endorsement taken as sacrosanct for any move. Present system is quite conducive for developing arachnids, who through hidden treaties with like-minded outwitting the real spirits of business and ethics…these stereotype figure always shown as legend but finding anything substantial wouldn’t be an easy task for any fair person.

Our aspiration is under heavy strain by such odd prevailing practices; if such tendencies wouldn’t be checked with due means of governance, then rough time would wait for us. I always believe in economics as a discipline and an emphatic stakeholder in governance-desirable change in governance requires an optimization of value from economic point of view. As a surging economy, and a stable economy; we can’t dwell with unethical practices, if really have to touch our potential height in all terms. As an Indian citizen, I will be rather happy with modest yet disciplined approaches than chasing deceased sophistication…if we can address our needs through practical means, than there is no need to fade with unsure Nash equilibrium of complex Game theory.
Atul Kumar Thakur
September8, 2010, Wednesday, New Delhi
atul_mdb@rediffmail.com