From Ideological Pragmatism to Hindutva : A Hypothesis of 2019 Elections

Pragmatism as a governing ‘logic’ post 1970s

Elections till 2014 including the ones that Congress lost, were fought on atleast the rhetoric of Nehruvian ideas of liberal democracy, progressive social reform and economic development. Simultaneously, since the Emergency, India has seen ‘pragmatism’, both in economic and social policy, as a governing ‘logic’ used by successive governments to push a patchwork of reforms – a multitude of temporary props to assuage public protests, mitigate crises and stabilize a crumbling system – with rather myopic policy frameworks while leaving myriad discordant conflicts for the future.

Neither Congress nor non-Congress regimes explicitly claimed to any ideological political framework in this period – an ambiguity which suited them in electoral strategy and post-election alliances. While pragmatism gave more room for maneuver, both to Congress and non-Congress governments, it lacked a coherent ideology to combat a new opponent which it has found in the form of Hindutva. In political terms, pragmatism is not an ideology and it can never counter any ideology while it may be a condition for maintaining it.

Hindutva as the governing ethic post 2014

That ideological ambiguity has summarily changed with the 2019 elections, but it didn’t happen abruptly. The governing political ideology of India started undergoing a change starting in the 1970s with the conflicts surrounding the Emergency, Mandal Commission and Babri Masjid demolition. 2019 elections mark a completion of that change. The last five years were, in a way, a launch pad to a new ideological formation – Hindutva – as the governing ethic by the BJP. In many ways, the ideological assertion of Hindutva in India’s political system is testimony to the catastrophically flawed nature of post-Nehruvian pragmatism that was ideologically hollow by design.

While it does not have much to differentiate itself from the Congress in terms of the economy, BJP has shown that there is much more outside the economy that it can make people care about. In a way, its 2014 campaign was very much in the vein of ‘pragmatism’ of preceding elections – promise of jobs, low inflation, and no corruption – while Hindutva remained in the background. The ideological divide between the Congress and BJP wasn’t as big a factor then as it was in 2019. The recently concluded elections were not fought on the old – who is more pragmatic – terms. There was a clear ideological divide and BJP did not shy away from underlining it.

What the last five years show is, if the framing of pragmatism is devoid of ideological underpinnings, intentionally or otherwise, it becomes vulnerable to criticism, even subjugation, from another doctrine ready to take the space. The 2019 elections were the first to have been fought on a wholly and radically different ideological plank of Hindutva, with explicit condemnation of Nehruvian liberal democracy.

All the Congress had to offer in response was its own version of Hindutva, justified in the language of ideological pragmatism – it didn’t even try to been seen defending the Nehruvian ideology, content in claiming ownership to Nehru’s legacy. That does not mean that the ideology of Nehruvian liberalism had all answers to India’s problems, just that its policy prescriptions was grounded in solid ideological framework.

Political necessity of opposition’s ideological framework

Being the propagator of the governing ideology, BJP could only commit “errors” – it could never be fundamentally wrong in the way its ideologically shaky opponents could. Moreover, in politics, the point is not to avoid all the errors but to be able to justify it – this needs an ideology. BJP could justify anything within its ideological doctrine – from demonetization to mob lynchings. Congress and the opposition needs to realize that the new common sense about social and political norms have changed, heavily influenced by the ideological preferences of the BJP. The Indian National Congress has to atleast attempt to provide a new common sense.

Frankly speaking, the opposition never tried to decisively dislodge the emerging hegemonic force of Hindutva – they only tried to get around it. What the opposition offered was not a counter-ideology but a pragmatic bend of the prevailing Hindutva doctrine in a less fundamental direction. Calls for pragmatism cannot stand without an accompanying doctrine. Without an ideological framework, a pragmatism can always be framed as ideologically bankrupt. BJP did just that, on every occasion it could. Opposition’s pleas to the pragmatism of Indian voters had no robust ideological underpinning. Successful as it might have been in previous elections, it was seen as an incoherent and defensive response.

If Congress wants to stop Hindutva from achieving hegemony, it has to now fulfill the political necessity of an alternative ideological doctrine in response to BJP’s own ideological assertions. Without an ideological force behind the opposition, Hindutva will become the default governing doctrine of Indian politics. Any subsequent pragmatism thereafter will be forced to abstract from that new common sense, just like pre-2014 pragmatism abstracted from the default of Nehruvian liberalism.

Conclusion

For the opposition to offer anything substantial as a challenge, it has to develop a robust new common sense, based not on pragmatic interpretation of the prevailing views of Hindutva but on ideological coherence of its counter-narrative and exemplar governance where it presently holds power. The unchallenged political sway that the Hindutva doctrine has acquired over Indian politics will gradually seep into constitutional institutions, civil society, academic and research institutions etc. The challenge therefore is to answer the political necessity of a cogent ideology which can provide foundations for pragmatic governance.

The Financial Crisis: “Too big, interconnected or Chinese to fail”?

“Too big to fail” is a phrase used to describe an institution that has grown, or rather been allowed to grow, to such a scale and scope that its failure will mean a systemic collapse. The banks had morphed from the regular Jimmy Stewart banks to market-based Wall Street megabanks, a financial overgrowth that had spread its tentacles into the houses of regular persons, their businesses, their education, their healthcare – all across the world, from the US to UK and Europe.

Their failure was deemed so destabilizing that they had to be saved at all odds. Institutionally, this revealed a peculiar logic: the national interest was in saving purveyors of high finance that had caused the crash. As Tooze writes, Geithner’s “commitment was to upholding the stability of “the financial system,” because without that, the entire economy was bound to fail. That was his key article of faith. The interests of America and the financial system were aligned.”

“Too interconnected to fail” describes the interconnected nature of banks such that failure of one of them precipitates a panic of failure of the entire banking system such that the policymakers find it imperative to save them. For example, globalized finance was deeply interconnected with the American mortgage boom through the shadow banking system. When the Lehman was allowed to fail, the costs in wholesale funding markets rose steeply due to risk of contagion in the interconnected banking system.

As Tooze writes, “The Fed and the Treasury misjudged the scale of the fallout from the bankruptcy of Lehman on September 15. Never before, not even in the 1930s, had such a large and interconnected system come so close to total implosion. But once the scale of the risk became evident, the US authorities scrambled.”

“Too Chinese to fail” refers to the fact that a large portion of the debt issued GSEs, Fannie Mae and Freddie Mac, were held by Chinese investors and Paulson “didn’t want them to dump the securities on the market and precipitate a bigger crisis…”, one that would jeopardize the ‘system’. As Tooze writes in the end, “what worried observers was the possibility of a mass sell-off of dollar-denominated assets by China’s reserve managers.

As the storm clouds gathered, holding China in place was the first priority of Paulson’s Treasury. And Paulson was willing to pay a high political price for doing so…. Nationalizing them helped to prevent a simultaneous Atlantic and Chinese crisis with consequences too awful to contemplate.” However, America was a big market for Chinese goods and “balance of financial terror held”. There was no Chinese dollar sell-off and “the crisis that followed was not an American sovereign debt crisis driven by a Chinese sell-off but a crisis fully native to Western capitalism”.

While the three phrases represent three different features of globalized finance, there also are big overlaps between them. These are not stand-alone characteristics.

References:

  1. Tooze, A. (2018). Crashed: How a decade of financial crises changed the world. Penguin.
  2. Kapadia, A. (2019). Capitalism: Theories, Histories and Varieties, HS 449 (Class Slides). IIT Bombay, delivered Jan – Apr 2019