Praxeology: My Reflexions on India

Chapter 2, Vol I of the Economic Survey of India 2018-19 begins with this title:   Policy for Homo Sapiens, Not Homo Economicus: Leveraging the Behavioural Economics of “Nudge” . It starts with the following Sanskrit stanza:   We cannot rely totally on rational thinking to gain information, as it is not without its bias . The following is the short abstract of this chapter: Decisions made by real people often deviate from the impractical robots theorized in classical economics. Drawing on the psychology of human behaviour, behavioural economics provides insights to ‘nudge’ people towards desirable behaviour. This chapter illustrates how the Swachh Bharat Mission (SBM) and the Beti Bachao Beti Padhao (BBBP) have successfully employed behavioural insights. Using such learning, the chapter lays out an ambitious agenda for social change: (i) from BBBP to BADLAV (Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi); (ii) from Swachh Bharat to Sundar Bharat; (iii) from “Give it up” for ...

Modi government, since again coming to power with even bigger majority than in 2014, is centralizing the economy and the society at a rapid pace. It is bringing out one central plan after another one. It is trying to dictate every little thing that is going on in India. For example, apart from the   flurry of governmental schemes , in last week itself the NITI Aayog issued a central plan of replacing all petrol/diesel based two and three wheelers to   electric vehicles   by year 2030. Then there is a central plan for   higher education   and   overall education system of India. The Centre has also planned to invest ₹25 lakh crore in the   farm sector   in the coming years to boost agricultural productivity etc. Does this centralizing process bode well for India? Not at all. Central planning is a folly. Both   theory   and   history are crystal clear about this. As Ludwig von Mises a century ago logically proved, the government c...