Policy studies in India: Finding direction and purpose

In recent years, there has been a steady increase in the number of think tanks and academic institutions studying public policy in India. These range from government funded bodies (like NITI Aayog), private sector organizations (like Observer Research Foundation or Centre for Policy Research) to international forums (like World Economic Forum, World Bank) and policy schools in premier higher education institutions (Centre for Policy Studies at IIT Bombay, School of Public Policy at IIT Delhi).

These indicate a divergence from the previous dominance of the Civil Service, mainly through the Planning Commission, in policy recommendation and analysis. While implementation was seen as the key determinant of policy success or failure till 1990s, this has given way to analysis of policy design, assumptions, forecasts and the very objective of the policy. This has also resulted in both a politicization of policy and the policy-fication of politics. In spite of the inchoate nature of the process, policy debates still provide the core of ideas, justifications and concepts – although more contentiously in a political environment where achievement of power through ideological hegemony seems to be the predominant goal. This articles discusses the direction of policy studies and its changing relevance in current political context.

While Planning Commission in India signified policy as a technocratic tool of an enlightened administration, recent developments have taken an argumentative turn locating policy both as a strategy servicing politicians and interest groups (politicization of policy) and as a tool to structure and systematize the public debate between experts, citizens and states (policy-fication of politics). The Commission in its latter decades was criticized for its lack of political realism and introducing political preferences under the guise of neutral procedures and technicalities in pursuit of political objectives.

Although similar critiques can be made of Niti Aayog, today’s broader policy debate recognizes human biases, political motivations and power dynamics much more than it did in the past. Diverse and emerging institutions of policy studies also reflect reduced relevance of traditional political scientists in the power hierarchy of policy process. This is signified by shift to a more technocratic approach that studies impact, processes and content of public policy based on causation, falsification and evidence. This seems to be a more causal approach that diagnoses problems, conducts trials/experiments and predicts impacts of policy interventions. To what end, is an open question. They may be just as political in the guise of neutral.

Moreover, there is an added appreciation of action imperatives and political demands that policymakers face, although sometimes it may be used to justify very bad but enthusiastic policies. Policy studies today lie at the intersection of scientific rationality as a means of solving collective problems and the socio-cultural fragmentations that regard rationality as exclusionary, undemocratic and incompatible with diversity, and hence fallible. To ameliorate this, policy reports try to underline improvements and modification as important components of policy, thus locating it in an iterative social context of public understanding, dialogue and action.

At the same time, opening up of the policy process has also lead to multiple cosy relationships among politicians, administrators, analysts and commentators who have coherent views on an issue. This generates pockets of influence with divergent political framing systems, whose relevance changes with power dynamics. In fact, this is a clear example of politicization of policy where any evidence is no more than an argument to further an outcome.

In this context, policy studies may be seen just as a systematic means to provide clever strategic shortcuts and simplifications to decision-makers with only modest changes in their knowledge, i.e. policy analysts are seen as just providing ammunition in a rhetorical contest whose policy outcome has been decided by those in power. Optimistically, this can also be viewed as a way for to forge common ground between competing interests. However, this may also create a moral relativism where reprehensible policies suddenly emerge as solutions from the supposed consensus of participatory or electoral politics.  It disregards the conditions for such a political consensus, if it can be so called, resulting in political deception and manipulated legitimation of forced consent.

One of the issues with this argumentative turn in policy studies is the creation of counter-experts immune to learning or reflection – ‘tribes of experts’ – who create ‘contradictory certainties’ beyond comparison for politically persuasive audiences, which reinforces polarization and leads to policy paralysis. Policy studies today is caught between the practical demands of scientific analysis and the increasingly tenuous practice of politics. It is in a dilemma between serving either an active participatory, national citizenship, or a self-proclaimed, enlightened, policy-making political élite (includes opposition) which is global.

This predicament also signifies a gradual decoupling of policy studies from its previous role in supporting government-initiatives, towards shaping debate on issues that have either skipped decision makers or which require more global agreements to emerge before a policy problem is even defined. While policy studies is an emerging field in Indian academia, it would be wise for its promoters and practitioners to recognize the direction they are treading on and reflect on the way forward. The fractured nature of modern politics can easily seep into policy studies, undermining the expertise of policy analysts and degrading the quality of policy-making.

References:

Hoppe, R., “Policy analysis, science and politics: from ‘speaking truth to power’ to ‘making sense together’, Science and Public Policy, 26-3 (1999)

Digital Economy, Society and Governance

I came across this interesting discussion in which governance of the digital economy is analyzed. I have tried to review and present my thoughts on this lecture by Prof. Rainer Kattel.

Rainer Kattel: Governing the digital economy | University College London (UCL) Institute for Innovation and Public Purpose (IIPP)

Prof. Kattel begins with some facts about the digital economy and its effects on privacy, productivity, employment, market concentration and global trade. He only uses these as a plane to discuss some more fundamental changes in our society brought about by digital technologies and its version of capitalism.

Features of the digital economy:

  • Not just automate but informate: Citing Zuboff, the lecture notes that today’s technologies learns not just about processes but also about users, their abilities and deficiencies such that it improve itself – a fundamental shift from earlier machines which performed routine, automated tasks. This presents questions for management of firms and organization behavior. Although this is a transformation, Zuboff’s work also notes the imperatives of what she calls ‘surveillance’ capitalism are different from managerial capitalism that the lecture focuses on.
  • Collective production of innovation: Citing Benkler, the lecture notes that production has always been a social process and in the digital age, this is more so as people willing give information into networks that becomes channels of innovation. For example, Open Source Software like Linux which has been amended and improved by myriad developers without profit motive. The question is, why have organized firms if innovation can be peer-produced? This process, according to Benkler, is varied in terms of granularity and modularity such that peer-production happens according to convenience and expertise of the developers.
  • Intangible Capital: Citing Haskel and Westlake, the lecture notes the increases relevance of brands, teamwork, social networks of employees, ability to source ideas from outside the firm etc. present challenges of measuring value of people as well as products and processes.

Digital Innovation and Competition

While classical economics argues for perfect competition, innovation happens via imperfect competition, as Schumpeter had proposed. The rapid expansion of market share which happens if technology itself learning to do things it is designed to do, can only be viewed as imperfect competition. This leads to reinvention of capitalism as technology changes every few decades, with an emergent new common sense, new products and new opportunity of profits – not of which have the ideal market of perfect competition.

For this, the lecture cites Prof. Carlota Perez’s work on the history of innovation, which shows that for every technological revolution, there is an installation period with bubbles and mania for initial investors, followed by turning point of collapse and recessions, which eventually leads to the general deployment of the technology for general prosperity with the intervention of the state.

Carlota Perez

While this may be the general trend of technological development and innovation deployment, the length of the frenzy, turning point and start of ensuing deployment period varies across societies and technologies. It is not inherent in the technology but a socio-political decision as to how and when the state responds to intervene such that the technology is used for general welfare. Similarly, the new common sense is also socially constructed.

Challenges:

The lecture also presents multiple interdependent challenges for economists, society and governments that digital technologies present:

Economics:

  • Why have firms when products and services can be crowdsourced or peer produced? Will their purpose only be rent extraction from this production? What would it mean for national accounting systems, if tasks that create economic value are so dis-aggregated?
  • What does this means for markets? Why do we need privately owned platforms when peer-production can be just as or more efficient?
  • If production of information is collective, why not have commons type ownership? What does it mean for the notion of property?

Society:                                                                                                                             

  • Welfare state vs personalized services – universality of government policies vs individual-focused customization
  • Statistical self vs automated self – following norms set by government vs going along with personalized feedback from devices
  • Countervailing institutions vs digital nomad – unionized labor vs gig workers

Governance:

  • Stability and predictability vs agility and experimentalism
  • From reaction to anticipation – predictive policing
  • Automation, platforms and inclusion – governments thinking like platforms e.g. payments systems, identity systems and automated services

Criticism:

While these comparisons and contrasts are important, the state and the firms seems to be understood here in the same fashion i.e. as centralizing institutions compared to the individual. Although they may have centralizing tendencies, there economic and political functions are fundamentally different – something we should never lose sight of. Even if the government provides some services or acts like platforms in a digital economy, its political identity has to be understood as separate from firms.

Similarly, the juxtaposition of universality and personalization may be less antagonistic and more about balance,as against what is presented in the lecture. While the automated self with personalized services becomes more prominent, it might not be wise for the state to lose sight of some universality and statistical averages in terms of policy making even as it focuses on the calibrating itself to individual citizens. Moreover, governance that has agility, is experimental, is automated or anticipates policy issues has to be always looked through the lens of inclusive democratic norms before institutionalizing these changes, which may not themselves yield inclusive or constitutionally sound results.

Notwithstanding these concerns, the lecture is an insightful analysis of the challenges and opportunities of the coming digital economy, what we need to think about, where to intervene and how to understand and shape the changes taking place around us.