Saturday, July 25, 2020

Managing Voter Perception

The following is an excerpt from the book, "India Unmade: How the Modi Government Broke the Economy" by Yashwant Sinha. 

Sometimes even a benign measure can have adverse consequences, like the national highway project. I later found that in 2004 we lost all the constituencies that lay along the Grand Trunk Road that goes from West Bengal and through Jharkhand, Bihar, Uttar Pradesh, Haryana and Punjab up to the Pakistan border. It was a paradox. The highways programme was the Vajpayee government's most outstanding project - his enduring legacy, the accomplishment now cited by even his staunchest political opponents - so we should have won in those very constituencies. We lost, however, because all highway encroachers were evicted. Even in my constituency of Hazaribagh, removing encroachers made a lot of voters angry. This is the political reality of India.

There is thus an argument to be made that there is no correlation between good work and getting re-elected. Any correlation is the first fallacy of punditry. Voting is only marginally connected to the work you might have done, or the government you were a part of. It is dependent on many other factors which may or may not work in your favour. 

The biggest factor is managing voter perception, a fact of which the Modi government is obviously keenly aware. Take the election in 1989, in which V.P.Singh overtook Rajiv Gandhi as Mr Clean because the Congress prime minister was bogged down by the Bofors scandal. Chandra Shekar as prime minister used to wonder out loud to me that V.P.Singh as Rajiv's finance minister had to have given approval to the Bofors gun procuremenet. Yet he was never stained by the scandal. Rajiv Gandhi's defeat by V.P.Singh was thus a result of perception management.

Saturday, July 18, 2020

Lies, damned lies and statistics

Say there are 100 people in a community and 5 of them are poor. The poverty rate is 5%. Say one of them dies of starvation. There are now 99 people and 4 of them are poor. The poverty rate is now 4.04%. The Leader puts out a celebratory announcement: The Poverty Rate has Declined by nearly 20%!
But is this really a good thing?
A similar trap awaits the unwary in the other direction. Say, again, you start with a population of 100, where only 5 are poor. The poverty rate is 5%. However, let’s say that these poor people are the strongest and healthiest of the poor. The weaker ones, especially infants, already died. The Leader pumps money into healthcare for the poor, focusing on reducing infant mortality. The next year the census reports that the population is now 105, of which 10 are poor. The poverty rate is now 9.5%. The opposition party puts out an accusatory press release: Under Leader’s Inept Rule, Poverty Rate Increase by nearly 100%!
But is this really a bad thing?
The error, in both cases, is confusing a 3-state variable for a 2-state variable. There are really three states: poor-living, non-poor-living, and dead. Looking at poverty rates fails to consider the dead state.

Saturday, July 11, 2020

Can We Depend on GDP Alone For Measuring Growth

The following is an excerpt from the book Hit Refresh by Satya Nadella.

Would you prefer to have $100,000 today or be a millionaire in 1920? Many would love to be a millionaire in the previous century, but your money then could not buy lifesaving penicillin, a phone call to family on the other side of the country, or many of the benefits of innovations we take for granted today.

Government should not have the goal of increasing GDP. It should try to improve the technology, business, freedom for the people, and make people lives more comfortable. With that, if GDP increases, it is fine. If not, that should not be a problem. Government should not do anything that increases GDP but reduces anything that impacts people.

Saturday, July 04, 2020

Ad by a state government on no Discrimination

Excerpt from an Ad by a state government, who files cases on people for their facebook posts.
No discrimination by caste and religion
50% Reservations to SC, ST, BC and Minorities
The above two lines are one below another in the ad (and not in different pages). Somebody, please explain them the meaning of "No discrimination by caste and religion".