Tag: Public Policy

Public Policy matters!

The core objective of public policy should be the welfare of the citizens” – Excerpt from Anticipating the Unintended Newsletter

Before I review this important book on public policy, let me tell you an interesting story of my childhood and how the Indian state was all around me, similar to the childhood of Jaitley, one of the authors of this book. My childhood was spent in this government quarter located in a block of Deoria district in Uttar Pradesh. My Amma (grandmother) was a government officer there for more than 20 years. The block is demarcated as an administrative unit under the government of India for the purpose of governance. I still have this fading memory of the event occurring twice in a year during my stay with my grandmother: once on Republic day and another on Independence day. 

So whenever Independence Day or Republic Day came, every employee prepared for it for many days before. They cleaned the whole place. Grasses were trimmed. Gutka stains were removed. Whitewashing was also done sometimes. All government officials wore their best clothes and reached the office on time (only these two days ) to participate in the function. I had no choice but to accompany Amma to these functions. She never said anything, but there was this unspoken rule for all kids to attend and participate in these functions and be present when officers were talking about the freedom struggle, contributions of leaders like Gandhi, Nehru, Ambedkar, Patel, Sarojini Naidu, etc. Interestingly, my mind was focused on the laddu and samosa, which were distributed at the end of the functions. That was the only incentive I used to attend these functions. Now that I look back, it feels like those speeches really made an impact on my life, so much so that I had one and only dream of being part of the Indian Civil Services. However, later in my life, I could understand the limitations of the State machinery and how it is also a creature of its circumstances and the people who are at the helm.

Public Policy seems like a subject for intellectuals and out of reach for people of other disciplines. Also, it can be a little boring for some, but the thing is that public policies are everywhere. What do you eat? Where did you study? Where are you working? Whom you are getting married to? Every decision and action are somehow interlinked with public policies, as the book adds: ‘context is king in public policy’.

The book, “Missing in Action: Why You Should Care About Public Policy” by Pranay Kotasthane and Raghu Sanjay Jaitley tries to make Public Policy interesting by using relevant examples. Its clever interlinking of the policies of the Indian state with Bollywood’s songs and movies of various times makes it relatable for common people to understand the complicated concepts about the Indian state, market, and society. The idea of the book is to answer the question of why, what, and how the Indian state works. This book, along with another profound book, In Service of the Republic by Vijay Kelkar and Ajay Shah, should be included in the curriculum of every college running public policy courses in India. The best thing about the book written by Kotasthane and Jaitley is its reliability, simple language, and examples given from the Indian context to explain the concepts. The authors’ use of first-principle thinking and providing the context and historical reasons behind every concept have made it an easy read for a subject that is inter-disciplinary in nature.

The book is divided into three parts: Sarkaar (State), Bazaar (Market), and Samaj (Society). These three important forces play a crucial role in policy making, implementation, and execution. Each part has different chapters that deep dive on the roles of state, market, and society and their interplay among them. Kotasthane and Jaitley bust some myths about politics and public policy before diving into three parts of the book.

Indian State: Mai Baap Sarkar

Sadak, tum ab aayi ho gaon, Jab sara gaon shahar ja chuka hai”- Mahesh Punetha

This part focuses on educating the reader on why the Indian State is the way it is and what it does. The authors discuss the origins of the idea of the state in general and the ‘Indian State’ in particular. They both feel that thrusting the responsibility of social revolution on the state by the Constitution of India was a revolutionary step. However, it overburdened the state with responsibility for reforming society, which later turned the State into ‘mai baap sarkar’. 

The Indian state became a nanny state because of the huge expectations and responsibilities thrust upon it by the constitution and the citizens. As the authors rightly put it, “it miserably failed at the task it was supposed to be doing : upholding law and order, policing, and providing basic public services due to its thrust on social reform”.

According to Kotasthane and Jaitley, the Indian State is a Republic of No, instinctive, still socialist, and focuses more on symbolism than substance. Rightly so, we are good at banning things, getting outraged because of flying kisses, movie scenes, or songs, and still thinking that the private sector is exploitative when there is hard evidence showing that 1991 economic reforms and privatisation pulled many people out of poverty. The government of the day will tell you to change your DP to support the ‘Har Ghar Tiranga Movement’ , when many other important things could have been done on this occasion. Some examples can be: don’t practice casteism, racism, sexism, etc., and some more practical ones like keeping your areas clean, helping others, or not using plastic, etc.

Bazaar (The Market)

This part talks about India’s economy and its interaction with markets and businesses. The Indian state and society both looked at the market with some suspicion because of historical reasons of colonial rule as well as the socialist ideas of our freedom fighters and early leaders. The market as well as the private sector have always been demonized until it reached a state of ‘hand to mouth’. At the brink of economic collapse, India went for economic reforms in 1991. Kotasthane and Jaitley argue for more economic growth to increase the economic pie since evidence suggests that every 1% GDP growth in India can take millions out of poverty. Economic growth is required to provide a dignified life for the people of this country.

It has many other useful concepts, such as the property rights system, opportunity cost neglect, cost-benefit analysis, marginal cost of public funds (MCPF), bans, and price controls by the state. The authors have thoroughly explained these concepts through examples from India. One such example is the problem of Delhi smog. You will be surprised to know that the government’s price signaling in terms of the minimum support price (MSP) for grains is one of the reasons why the capital city turns into a smog chamber every winter. If you are a student of policy or economics and find it difficult to understand economic jargon, you must read this section to get a better understanding of these concepts.

Samaj: Mere Angane Me Tumhara Kya Kaam Hai

This part delves into the challenges between the Indian state and society. Indian society was and has always been conservative and illiberal, considering all kinds of biases and discrimination practiced until today. Just read matrimonial ads published in any newspaper, and you will see how our society is still obsessed with caste, class, race, color, religion, and other factors that make them feel exclusive and superior. However, the Indian Constitution is a liberal document that talks about rights, freedom, and social justice. The friction was bound to happen and is still happening. The Indian state is ruled by the people who come from society, and they try their best to bend these rules, laws, and orders to practice societal norms and practices. They have always lived a double life: liberal while doing their job but conservative at home. This dichotomy changed after liberalisation because people were no longer dependent on the state for everything.

In this part, Kotasthane and Jaitley also discuss the so-called ‘population problem’. They are not hungry stomachs but enterprising brains. Poor governance rather than overpopulation is India’s biggest problem, according to the book. In the end, authors discuss narratives, development models, and finally the idea of India and how the discourse has shifted from finding the right solution for the overall development of the country to proving the other side wrong. However, the solution also lies in the people of India, its Constitution, and state, because India’s quest for destiny is still going strong. You, the reader, and the conscious citizens of this country are still determined to make this country a better place to live.

Happy Independence Day to all of you!

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Introduction to Public Policy!

“Public Policy is whatever government choose to do or not do”

Thomas R. Dye (Political Scientist)

I got this interesting opportunity to listen to the lectures of Dr. Rakesh Chakravarti and Kaushiki Sanyal (Authors of this book) during the Policy Boot Camp 2017 where this book was part of our reading materials. This book is quite short and interesting as it talks about the origin and processes of policy making in a few pages. Every public policy enthusiast read this book before venturing into the complex field of public policy.

In these few pages, this book answered all intrigued questions related to public policy. For instance: What is public policy? What is the origin of public policy? How can we contribute to policy making? What are the institutions which provide degrees in this area? What are the stages of policymaking exercises? When did public policy as a discipline become popular in India? It touches almost most of the aspects of the policy making and encourages us to read more about the issues in the domain of public policy. And this book is quite significant for Indian policy students as it has been written in the context of current issues dominating in the social space of the country. It talks about the nirbhya rape case as well as public transport revolution created by Delhi metro.

The authors have tried to trace the history of public policymaking starting from Harold Lasswell‘s basic definition of public policy as ‘who gets what,when and how ‘as the starting point for this existence. They also discussed in detail the transformation of Bihar in the leadership of Nitish Kumar emphasizing that a great leadership can bring about substantial changes in a short span of time.

They talked about the challenges of policy implementation and evaluation. The ideas of Randomised Control Trial(RCT) and the difference in difference principle as methods for effective implementation of public policies were explored in the book.

They tried to tell the policymakers of the country not to be dogmatic so that they can adopt various perspectives from around the world in the policymaking process. In the last pages of the book, the authors provided various innovative solutions to overcome various challenges to policy making, implementation, and evaluation. They tell you, how to broad-base policy-making, how to increase legislative capability, and how to evaluate policies in a better manner so that we can develop better policies.

I would recommend this book to all current and future policy makers so that they can understand the nitty-gritty of policy making in just a few pages.

Negotiation workshop on Mouse Case Study:

During this lecture, we were given Mouse Case Study (http://www.depa.univ-paris8.fr/IMG/pdf/Disney_Case_Study.pdf)

In this case study, there was a group where we have to play different roles like someone was playing a representative of the private sector, another three people were playing the role of local government and another was a representative of the government. So, it was a great learning experience and realization towards the complexity of public policy making, implementation, and its challenges:

  1.  The first time in my life, I realized how difficult it is to bring about consensus on any one particular issue. It is very difficult to satisfy the aspirations of each person in the group.
  2. I was acting as a representative of the government and I had to mediate between private sector representatives and local government representatives.
  3. When the discussions were going on, suddenly one of the local representatives went outside the room saying that he didn’t agree with the proposals. This showed the kind of emotions someone goes through when it comes to your self-interest.
  4. At last, we somehow reached a deal but I think that I, as a government representative, gave more concessions than it was required.

I don’t know if I acted in a good sense or not? Even so, it was quite insightful and an eye-opening exercise that provided an interesting experience of nuances of policymaking. Convincing and negotiating with others when their self-interest is involved is a very difficult issue. We keep on criticizing our leaders, bureaucrats, policymakers, teachers, etc., but we never put ourselves into their shoes to understand their constraints and challenges.

Changing Policies Through Nudging

This book was difficult for me because I never read this kind of book before. The title of the book conveys the main idea of the book. Nudge can create a sustained push for not only changing the human behavior towards everything but also help in various policy matters.

Richard Thaler, the writer has provided various examples to prove his theory. In fact, after reading these ideas, we can also realize those things after a keen observation in our personal life.

The most recent and important example can be remembered in the context of India is the issue of prohibition. Supreme Court of India has banned the shops from serving liquor if they are located within a 500m distance of national highway. Various state governments have also banned liquor in their state. Bihar is the recent example. Here, the question is: Will banning any substance solve the real issue? Will it really solve the issue of drunken driving?  It was always found that banning/ restrictions have failed miserably to solve any problem. Here we need an innovative form of pushes in the form of nudges as described in the book. Why not the government should start an innovative campaign of information dissemination regarding prohibition. For instance, popularize the information that spending on alcohol can be used for other productive purposes like buying a house or a vehicle. There is need to create a feedback mechanism to make the people realize about their choices.   For example, banning junk food will not solve the problem of obesity but providing the fresh fruits, vegetables at a reasonable rate to the public will create a powerful nudge. Make eating fresh fruits as a fashion statement. It is really happening nowadays for organic foods.

This book has provided various concepts:  Libertarian Paternalism, Choice Architect, Default options etc. These concepts decide the choices we make in our life. Our parents, governments act as a choice architecture which provides us various options to choose in our life. Why not provide good choices to the people so that there is no need to ban anything.

In fact, I found something very interesting in this book regarding how we think and why we choose bad options despite knowing that they are not good for our well being:

  • Because we use our automatic system to think which is effortless and uncontrolled.
  • We generally do not use our reflective system which is rational and controlled.
  • The most prominent example is of Voters who seem to rely primarily on the automatic system. They just go by the pictures or possibilities that who is going to win.
  • We follow guesses, rules of thumb, behave in overconfidence, work in the spirit of unrealistic optimism and more worried about losses than gains. Not only this, the status quo bias also hurts our choices.
  • We are not able to resist temptation and sometimes act mindlessly. For example, eating is one of the most mindless activities we do in our life despite knowing that it affects our health, well being and overall life. But we don’t care whatever garbage comes in front of our eyes, we just grab on that because of lack of self-control.
  • Sometimes, we also behave in that manner due to social influences.

So, the issue is how to solve these issues: There is need to NUDGE people towards good choices. And the writer has provided six principles:

  1. Incentives
  2. Understand Mappings
  3. Defaults
  4. Give Feedback
  5. Expect Error
  6. Structure Complex Choices

The policymakers, as well as people at the helm, should provide incentives to the people to follow rules. The recent example, I can remember about providing various prizes under DIGI DHAN MELA programme of Government of India to make India digital.

The default options are very powerful and ubiquitous. People generally do not change the default options. So why not make good choices as default so that number of people can follow it. The writer discusses this option so many times. For instance, if we want to save money, why not deduct the amount from the salary automatically. In fact, the saving and insurance ideas of today are mostly based on this concept. In fact, he has highlighted the concept of SAVE MORE TOMORROW.

Providing feedback is also a good option. If we provide feedback to the people in comparison to others, they tend to improve their situation. This also works in cases of comparison.

The writer has written this book analyzing the policies prevailing in the USA. However, the basic idea of nudge can be used in India’s various public policies. In fact, the campaign of Texas-DON’T MESS WITH TEXAS was very successful in reducing littering in the city. It can be adopted in India in various manners. For instance- DON’T MESS WITH DELHI.

The writer also discusses various objections to the idea of LIBERTARIAN PATERNALISM.

In fact, the book is a good read for future as well as present policymakers who really want to provide good choices to the people to make their life better.

Just now, I found a very interesting implementation of this idea by the UK government. The UK government has a “NUDGE UNIT” in the name of BEHAVIORAL INSIGHTS TEAM.  This organization was set up to popularize “nudge theory”, which is a combination of behavioral economics and psychology. It is helping the government to improve policy options and bring about change in the behavior of the people.