Monday, November 13, 2017

RECALLING SOCRATES IN THESE MODERN TIMES--FINANCIAL EXPRESS 13TH NOV 2017







RECALLING SOCRATES IN MODERN TIMES
TEJINDER NARANG
(Trade Analyst)
The period prior to Socrates in Greece–that is of Sophists –about 2600 years back, believed that right and wrong are relative—so are good and evil. Sophists were adept in proving right as wrong and vice versa, by clever play of logic and rhetoric.
But Socrates argued that people are largely ignorant of what they want. Unless people acquire a life of good virtues-- wisdom, courage, justice and temperance-- they are bound to regret. For example—all of us believe in seeking happiness as the prime purpose of life and therefore material wealth, powerful position, good family and social life are of paramount importance. In pursuit of these very objectives, there is more pain than pleasure. The so called Happiness is riddled with fear and worries of all sorts or with concerns of losing what we have, and therefore is illusory.
In modern democratic world too, people elect leaders for more comfortable life with their expectations linked to promises made by prominent politicians. These leaders take advantage of the lesser awareness of the people and flatter their feelings for winning elections. After a few months and/ or a few years, those very people who elect leader(s) with resounding victory, start blaming the polity that “what they wanted” is not delivered. Rulers suffer pain of this politicking by fear of losing power.
Socrates hypothesis maintains that people who are virtuous must choose leader in a democracy. But who will decide as to who are wise and virtuous—and not clever –is the question that begs an answer. Socrates had to drink hemlock of poison for adherence to this philosophy of virtues for a democratic set up. Today—Socrates is alive in thoughts of the world—while his killers remain forgotten.
In most developed parts of the world, where people are even well educated and well informed have also exposed themselves to national pain in the hope of gain.  David Cameroon, the former British Prime Minister, never expected that Britain would vote for termination of its alliance with EU under Brexit referendum.  On 23rd June 2016, 51.9% of the participating UK electorate (turnout was 72.2% of the electorate) voted to leave the EU. 1.9% is a miniscule majority to offset the rest of 48.1% as minority.  Thus 34.5% (72.2x51.9) of British electorate is deciding fate of 100%, but now trapped in concerns of trade matters with EU and cheaper labour from Eastern Europe etc. Cheerleaders of Brexit are in a predicament.  Was Britain earlier decision to join EU by a majority  right or wrong? Education alone does not bestow wisdom when considered in the political context.
USA voted for Mr. Trump as President because of racial considerations, promises of getting rid of Islamic conflicts worldwide-- especially US’s continued involvement in Iraq and Afghanistan- and for ejection of neighboring illegal Mexican, Puerto-Ricans immigrants. That would make USA a safer place, was so believed.  But the honeymoon with Trump ended within a few weeks. Americans realized that-- a democratic country cannot be run like a CEO of a corporate entity by executive orders; illegal immigrants are the cheapest channels of services; while Iraq/Afghanistan and Islamic clashes have been historically messed up. Expectations of the people stand belied especially when the Russian role in US presidential election is under investigation. Numerical majority to be considered as determining majority may not be right. That again validates Socrates.
Prime Minister Modi came in at the very right moment in 2014 when there was a policy paralysis. He sincerely offered a dream world of minimum governance, improved socio-economic conditions, induction of new technologies, doubling farmers’ income, “acche din”, dealing with Pakistan from position of strength, creating an aura of powerful nation in the world and vowed to eliminate corruption.
People believed in his avatar as political messiah.  His decision of demonetization though understood as ethical, has created deeply divided opinion of supporters and detractors. In the short term, GDP has seen a declining curve with loss of jobs in the informal economy as reported in the media. GST—as a work in progress—has too been terribly mishandled in detailing. Prices of farm produce are lower—affecting Agri-income. PSU banks are riddled with rising NPAs while political blame game goes on. Exports are tepid.
Supporters of Mr. Modi are optimistic of long term benefits while others see more pain in coming months. A section of the society, especially traders and small businesses are now brooding over his initiatives.  The common complaint is that he over promised. The pain in undergoing real transformation undertaken by Mr. Modi is quite severe that is incompatible with mindset of diversity of Indian society. These very people are now questioning that under whose mandate the pain is being inflicted while many good things (like Jan Dhan account, Swacch Bharat, Ease of doing business etc) he initiated are taken for granted.
Here the issue is not that Mr. Modi overpromised but lack of awareness in the people about tangible reforms and progress—and not merely tinkering of reforms. New technology and novel policy profiles will bring in creative destruction. 
When arrays of decisions are made for the larger welfare of the nation and society, the prevailing systems and the society should be able to absorb shocks, for which India is not ready. Perhaps Socrates was again right that the ruler, the ruled, the reform and the system should all be in harmony for progress. But such an ideal situation cannot exist in this world of imperfection.

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