Fighterization of Government

The problem with the proposed Jan Lok Pal bill is that it’s highly personality dependent. Given the kind of powers they want vested in the Lok Pal, it is clear that the proponents of this bill (Anna Hazare and co.) have simply assumed that a “good and incorruptible person” will occupy this post. What they don’t seem to have considered is that governments usually mess up in such appointments and it’s not guaranteed that a “good and incorruptible person” will always occupy this post. And that for that precise reason it’s dangerous to create an institution whose performance is highly dependent on the person occupying the post.

I’m reminded of two “high offices” to which people are appointed by the Central Government. Both these offices have gained prominence due to their occupation by high-quality people who did much to enhance the stature of this office, but have been undermined later by the government (UPA 1 and UPA2 in this case) appointing people with shady backgrounds to this post.

The first is the office of the Chief Election Commissioner. While this post has existed since the time of the first general election, the office was brought to prominence by former CEC TN Seshan. He was followed by a few other respectable gentlemen (James Michael Lyngdoh comes to mind). But then who did the UPA appoint to this post? Congress crony Navin Chawla, who in his earlier avatar as an IAS officer had been indicted by court as being “unfit to hold public office”.

The other case refers to the Central Vigilance Commissioner. By definition, this is a vigilance office and one of the implicit duties of this job is “vigilance”, which implies action against corrupt practices. You can think of this post as being a sort of a “mini Lok Pal” (for bureaucrats only, politicians being excluded). Again, when this post was created it was assumed that “honest impeccable incorruptible persons” would occupy it. And who did the UPA try to put there (before the Supreme Court struck down the appointment)? PJ Thomas, who had been indicted in a scam about 10 years ago.

There is no guarantee that people like Chawla or Thomas could come to occupy the post of the “lok pal”, which will completely undermine the purpose of the institution. I hope the thousands of people who are blindly supporting the “Jan Lok Pal bill” (and this includes you, Bharatiya Janata Party) take this little technicality to note. I exhort them to ask themselves if they’ll be ok having Navin Chawla or PJ Thomas as the Lok Pal. If they think it’s ok even if such people were to occupy the post, they can go ahead wiht their support. My assumption, though, is that most people haven’t really thought about this angle and are blindly supporting the anti-government agitations.

Coming to the title of this post, what we need is to create institutions that are not personality-dependent. We need to create institutions and systems with appropriate checks and balances such that even if people of “lesser integrity” were to occupy it, it wouldn’t be possible for them to significantly undermine the office. We need to effectively “fighterize” these posts in order to ensure that it’s not possible to sabotage them by means of a few bad men occupying them.

And the way I see it, the institution of the Lok Pal as envisaged by the Jan Lok Pal Bill (or by the government-sponsored bill for that matter) is highly personality dependent. And that is one of the reasons I’m opposed to this current Anna-Swami-Baba movement.

Two kinds of immigration

There are fundamentally two kinds of immigration – local job-creators and local job-competitors. The former are primarily middle and upper middle class people, who create jobs locally in terms of employing people (directly) to provide services for them – like maids, cooks, drivers, laundrymen, etc. The latter are primarily working class people who migrate in order to provide local services. They work as maids, cooks, drivers, etc.

Already existing local service providers welcome the immigration of job-creators. That means they now have the opportunity to push up their asking prices, since there is now more competition for their services. There is little economic opposition to the immigration of job-creators. The opposition to them is usually cultural – witness the rants of middle class “native” Bangaloreans like me against “koramangala people”.

Job-competitors, on the other hand are not so welcome. While they usually don’t contribute too much to the “culture” of the city, they compete directly economically against already existing local service providers. There is a clear economic rationale for local service providers to oppose the entry of more such providers, and since the local service providers are usually numerous and politically active, it is easier to oppose the entry of such job-competitors.

In the 1960s, for example, Shiv Sena started out by targeting South Indian middle class people. However, that campaign didn’t last long, since the “masses” (mostly local service providers) realized that it was economically counterintuitive for them to target middle class people. Hence, gradually over time, the rhetoric changed and the targets are now immigrant job-competitors. So you have Shiv Sena guys beating up Bihari taxi drivers, etc. And since this targeting of immigrant job-competitors is economically advantageous to the “masses”, it is likely to be more sustainable than the targeting of immigrant middle class people.

Standard Error in Survey Statistics

Over the last week or more, one of the topics of discussion in the pink papers has been the employment statistics that were recently published by the NSSO. Mint, which first carried the story, has now started a whole series on it, titled “The Great Jobs Debate” where people from both sides of the fence have been using the paper to argue their case as to why the data makes or doesn’t make sense.

The story started when Mint Editor and Columnist Anil Padmanabhan (who, along with Aditya Sinha (now at DNA) and Aditi Phadnis (of Business Standard), ranks among my favourite political commentators in India) pointed out that the number of jobs created during the first UPA government (2004-09) was about 1 million, which is far less than the number of jobs created during the preceding NDA government (~ 60 million). And this has led to hue and cry from all sections. Arguments include leftists who say that jobless growth is because of too much reforms, rightists saying we aren’t creating jobs because we haven’t had enough reform, and some other people saying there’s something wrong in the data. Chief Statistician TCA Anant, in his column published in the paper, tried to use some obscurities in the sub-levels of the survey to point out why the data makes sense.

In today’s column, Niranjan Rajadhyaksha points out that the way employment is counted in India is very different from the way it is in developed countries. In the latter, employers give statistics of their payroll to the statistics collection agency periodically. However, due to the presence of the large unorganized sector, this is not possible in India so we resort to “surveys”, for which the NSSO is the primary organization.

In a survey, to estimate a quantity across a large sample, we simply take a much smaller sample, which is small enough for us to rigorously measure this quantity. Then, we try and extrapolate the results to the large sample. The key thing in survey is “standard error”, which is a measure of error that the “observed statistic” is different from the “true statistic”. What intrigues me is that there is absolutely no mention of the standard error in any of the communication about this NSSO survey (again I’m relying on the papers here, haven’t seen the primary data).

Typically, when we measure something by means of a survey, the “true value” is usually expressed in terms of the “95% confidence range”. What we say is “with 95% probability, the true value of XXXX lies between Xmin and Xmax”. An alternate way of representation is “we think the value of XXXX is centred at Xmid with a standard error of Xse”. So in order to communicate numbers computed from a survey, it is necessary to give out two numbers. So what is the NSSO doing by reporting just one number (most likely the mid)?

Samples used by NSSO are usually very small. At least, they are very small compared to the overall population, which makes the standard error to be very large. Could it be that the standard error is not reported because it’s so large that the mean doesn’t make sense? And if the standard error is so large, why should we even use this data as a basis to formulate policy?

So here’s my verdict: the “estimated mean” of the employment as of 2009 is not very different from the “estimated mean” of the employment as of 2004. However, given that the sample sizes are small, the standard error will be large. So it is very possible that the true mean of employment as of 2009 is actually much higher than the true mean of 2004 (by the same argument, it could be the other way round, which points at something more grave). So I conclude that given the data we have here (assuming standard errors aren’t available), we have insufficient data to conclude anything about the job creation during the UPA1 government, and its policy implications.

Criminals in politics

During the Anna Hazare show, skeptics said people shouldn’t randomly protest, they should come out and vote (for the record, people have voted in really large numbers in the recently concluded assembly elections). Hazaarists replied saying that there’s no point voting because every candidate is a crook, and they are all corrupt, or something to that effect. Then someone else popped up and said that criminals should not be allowed to contest for elections.

Now, there exists a law barring criminals from contesting elections. However, only people convicted of a criminal case can’t contest, not those who are under trial. The justification of this is that activities such as “riots”, “protests”, “dharnas”, etc. come under the criminal law and you can’t “obviously” bar people who take part in such “noble activities” from contesting. So you have people who have led noble dharnas contesting, as those who have been accused of committing rape or murder. Inclusive democracy, as they say.

What I don’t understand is what is so noble about holding protests, blocking roads and railways and holding entire population to ransom. I don’t understand why perpetrators of such crimes need protection, and are allowed to contest elections.

So I think one step in decriminalizing politics would be to bar people with a criminal case against them (not necessarily convicted) from contesting for polls. Of course we won’t put this law with retrospective effect, but it’ll apply to only new cases that might be filed against potential candidates from the date on which the law is notified. It would have welcome side effect that politicians would now think thrice before they decide to hold rallies that stop road and rail traffic and hold the mango man to ransom. And apart from potentially decreasing corruption, it would make our cities a much more peaceful place to stay in.

But I’m being impractical here. Who will bell the cat? Why would any politicians “act against themselves” and bring in such a law? Can some Hazaarists please stand up, or rather sit down in fast, for this, please?

The problem with “civil society” people

is that they can’t work with people with whom they have minor differences – which is where politicians easily trump them. Politicians are expert in the art of working out compromises and working with people with whom they have divergent beliefs. Of course, it creates “unholy coalitions” but you have to give it to the enterprise of the politicians (let’s not question their motivation here) to come together as a group and get stuff done.

With civil society types, however, as soon as they discover that there is something disagreeable about the other party, they’ll cry hoarse and refuse to work with them. So for example, if for some reason I come together with these “civil society” worthies for some cause, I’m sure they’ll all ditch me as soon as they come to know that I was a member of the RSS when I was eight years old.

Because of this, it is rare that civil society types come together for a cause, which is what makes people believe that the Anna Hazare-led protests of two weeks back were such a significant success. That this magnificent coalition hasn’t really lasted, and cracks are already coming up in the “civil society” half of the draft committee just goes to illustrate my point.

There can be exceptions to this of course – civil society people drawn from an extremely homogeneous distribution ARE capable of “getting things done”. Think National Advisory Council!

Moron the corruption issue

Following my previous post and comments and countercomments and discussions on twitter and facebook and google groups and various other forums, I’ve been thinking about this whole corruption thing. Random thoughts. The kind that comes to you when you’re traveling across the city by auto on a hot summer day, watching the world go by.

Ok so this is for the people who claim that the supporters of Anna Hazare are a large enough group that they probably represent “most of the people”. If this were the case, we have a simple solution to corruption – all these worthies can band together in the form of an “anti corruption party” (when was the last time we had a political party being formed on a solid ideology?) and contest the next elections. And if they can work hard, and ensure that they keep up the kind of efforts they’ve started, they’ll soon be ruling us. And hopefully they’ll continue with their zeal and be actually able to eradicate corruption. (on my end, I promise that if a credible party gets formed with an anti-corruption stand, I’ll get over my NED, get myself registered as a voter and vote for them).

But there are reasons to doubt something like this will happen. A look at the list of nominal supporters Anna Hazare got suggests that a lot of people were there just to be seen and get footage, rather than really wanting to weed out corruption. Again, given the political spectrum across which Hazare’s supporters last week came from, it might not be that easy an idea to form this “anti-corruption party” that I suggested.

Thinking about it further, there is a scary thought – that a large part of our population is actually pro-corruption. And looking at the political parties across the spectrum, it doesn’t sound implausible. So if a large number of people are actually pro-corruption, what are we to do?

Let me put it another way. How many people do you think are really anti-corruption? On all fronts? How many people do you think exist in India who haven’t paid or received a single bribe, however small that might be? Basically I want to estimate the number of people who are against corruption of all kinds, and my sense is that this number is likely to be small indeed.

I think one needs to think about this further before actually figuring out how to weed out corruption. From what I’ve read so far the Lok Pal bill simply adds one extra protective layer, and am not sure of its effectiveness. More about this in another post.

Something’s Itching

  • Recently I read this joke, not sure where, which said that the American and Indian middle classes are feeling sad that they cannot take part in a revolution, unlike their counterparts in Egypt, Tunisia, Libya, Yemen and other similar place. Instead, they can only vote
  • There needs to be some sort of an antitrust law for political parties. There is currently little to distinguish between the policies of various political parties. For example, all parties favour a greater role for the government (more govt => more opportunity to make money on the side => more corruption, etc.) .
  • Given the homogeneity in the political spectrum, there is little incentive to vote. This scoundrel may be only marginally better than that scoundrel, so why bother voting. So we have this large middle class which essentially removes itself from the political process (confession: I’m 28, and I’ve never voted. When my name’s in the list I’ve not been in town, and vice versa.)
  • Now this Anna Hazare tamasha has suddenly woken up people who never bothered to vote, and who are pained with excessive corruption. So they’re all jumping behind him, knowing that this gives them the opportunity to “do something” – something other than something as bland and simple as voting.
  • Supporters of Hazare care little about the implications of what they’re asking for. “Extra constitutional bodies”? “Eminent citizens”? Magsaysay award winners? Have you heard of the National Advisory Council? You seriously think you want more such institutions?
  • The Lok Ayukta isn’t as useless an institution as some critics have pointed out. But then again, this is highly personality-dependent. So you have a good person as a “lok pal”, you can get good results. But what if the government decides to appoint a compliant scoundrel there? Have the protesters considered that?
  • Basically when you design institutions, especially government institutions, you need to take care to build it in such a way that it’s not personality-dependent. Remember that you can have at TN Seshan as Election Commissioner, but you can also have a Navin Chawla.
  • So when you go out in droves and protest, you need to be careful what you ask for. Just make sure you understand that.

Useful links:

http://acorn.nationalinterest.in/2008/02/23/grammar-of-anarchy/

http://openthemagazine.com/article/voices/the-anna-hazare-show

http://calamur.org/gargi/2011/04/06/my-issues-with-the-proposed-jan-lok-pal-bill/

http://realitycheck.wordpress.com/2011/04/06/jan-lok-pal-caveat-emptor/

http://www.indianexpress.com/story-print/772773/

http://www.business-standard.com/india/news/the-hazare-hazard-/431045/

 

In Perpetual Transition

This post has nothing to do with Ravi Karthik’s blog. It has everything to do with Bangalore’s roads. I can’t recall a single instance in time in the last 15 years when all roads in Bangalore have been in “normal state”. Maybe ever since the KR Market flyover started, there has been one part of the city or the other that has been dug up. And the digging is only increasing. Earlier it would be a handful of places in the city that were dug up. Now, it is tough to find two points over 5 km apart such that you don’t have to take a diversion of some sort to travel between them.

The optimistic among us think that things will become better as soon as these projects get completed. However, what we forget is that there is a small but powerful section of society that survives on the city being in transition. Road-builders, bridge-builders, road-diggers, road-fillers, and all these sundry people make their living based on the premise that the city will be in perpetual transition. And given how critical income from such activities is for their survival, they resort to lobbying and paying “rents” to relevant people in the government to ensure their cash flows continue.

The problem here is one of a small concentrated set of big winners, and a large uncoordinated distributed set of small losers. And the small set of winners can successfully get together and lobby and have things their way, because the other set is too disjointed to do anything about it.

The other (and in my opinion, the bigger) problem is that thanks to lobbying, the government has a natural disposition to spend more than to spend less. And all the spending comes from taxpayer money. So you have the road projects in Bangalore that you think you don’t need. You have the free TVs and Mixies and whatnot in Tamil Nadu. And you have rice and wheat given to the (supposed) poor at rock-bottom prices. And where does the money for all this come from? Your taxes!

I hope sooner rather than later people realize that the only solution to corruption is less government. The problem, however, is that the government has no incentive to reduce its own size – for in that case the kickbacks and  rents that it (to be precise, people who are part of government) can potentially extract come down. You might institute acts like FRBM (fiscal responsibility and budget management, which seeks to put a cap on government spending) but with such a cap in space, what is the guarantee that the government will actually spend that limited money on what is necessary, and not what gives rents for its officers and employees?

Political parties may have different ideologies, and may appear to fight about every little thing. But this is one thing they agree on – that the size of the government be large – that way they all get to (in turns) have a share of the (rental) pie. This equilibrium is stable and I don’t know how we can snap out of this. And till then, our taxes will continue to flow out. And the cities will be in perpetual transition.

Making BRTS work

(yet another post that is a few days late, but what the hell)

In the recently delivered Karnataka State Budget, the government has budgeted funds for developing a Bus Rapid Transit System (BRTS) in Bangalore, in order to supplement the Metro and help ease the city’s traffic woes. The problem is that it’s a small amount that’s been released and the budget states “for providing BRTS between Hebbal and Silk Board”.

Commentators (including some traffic experts like MN Sreehari (not able to find the Deccan Herald link on this topic) ) have criticized the move, claiming it is going to once again choke the outer ring roads which have now been set free because of the efforts to make it signal-free. So the commentators have used this as an argument against the BRTS.

On the contrary, I argue that we need more, and not less, BRTS. The whole purpose of an integrated urban rapid-transport system is to encourage people to leave their cars at home and instead use public transport. And for that to happen, really good quality public transport has to be available in all areas (with autorickshaws providing last-mile service). Else there is no real incentive for people to abandon their cars.

The problem with initiatives like the Metro is that it takes way too long to construct. The cost involved in terms of intermediate inconvenience and lead time are enormous. Which is a major point in favour of systems such as the BRTS. So what needs to be done is that the BRTS needs to be introduced on several routes simultaneously, thus bringing a larger area of the city under the integrated public transport system.

The network effects here are huge, and the more the portion of the city that is served by high-quality public transport, the more the incentive for people to not use their cars. On the contrary, introduction of BRTS along one or two lines benefits few and causes inconvenience to a really large portion of the population (all users of the BRTSed routes).

We have already seen in Delhi the impact of a badly-implemented BRT scheme (along one road in South Delhi, if I’m not wrong; deeply unpopular and resented). I’m surprised the guys in Bangalore haven’t learnt from that.

Punjabi Muslims

So earlier today I was reading this profile of a Harvard professor that Chan had shared on Google Reader, and I came across this name called Iqbal Dhaliwal. The name immediately rang a bell, and I realized I’d come across this name long long ago in the Competition Success Review (yes, I admit I used to read that ) when he topped the civil services exam.

So one of my hobbies is to try find out about a person’s origins and ethnicity given his/her name. Like I once figured that this colleague is of Danish descent because his surname ends with -sen while the more common spelling of that name is -son. And so I was trying to figure out where  Iqbal Dhaliwal came from. It was clear from the first name that he’s Muslim. And the last name, I thought, sounded Punjabi.

And then my thought process went something like this:

First name Muslim, last name Punjabi-sounding… So is he a Punjabi Muslim? But then, I don’t know any Punjabi Muslims. Do there exist any Punjabi Muslims at all? Hey, wait a minute, I remember reading somewhere that the majority of people in Pakistan speak Punjabi. So there must exist Punjabi Muslims. But I don’t know any.. I don’t know any Punjabi Muslims but there are lots of them in Pakistan. Yeah, I don’t know any because all of them are in Pakistan. Yes, all of them are in Pakistan, most of them at least!

I know Kannadiga Muslims, Bengali Muslims, Gujarati Muslims, Kashmiri Muslims and Muslims from UP. But I don’t know any Punjabi Muslims. Because there are no Punjabi Muslims in India. Because ALL of them went to Pakistan. Tells you how much of an impact partition had in the Punjab,  compared to anywhere else in India.