Cargo Cult and Democracy

There is an interesting anthropological curiosity which arose amongst the islands in the South Pacific after the Second World War. It is known as the Cargo Cult. I first came across it in Marvin Harris’s book Cows, Pigs, Wars & Witches many years ago. (By the by, I highly recommend Harris’s book OUR KIND: Who we are, Where we came from & Where are we going — Evolution of Human Life & Culture.)

The islanders had noticed that Europeans had some sort of powerful magic which allowed them to receive stuff from the heavens. The islanders decided that they too must make arrangements to receive stuff. So they faithfully reproduced the artifacts that they saw the Europeans use in magically making cargo appear out of the skies. They cleared a large area in the forest, lit bonfires around this, built a hut close by in which they put a box with antennae sticking out of it, made ‘headphones’ out of coconut shells, and spoke earnestly into a ‘microphone’. Then they waited for cargo to drop out of the skies, just as they had seen the Europeans receive during the war.

It is a fascinating tale and has wide-ranging implications. The islanders were not stupid, merely ignorant. They figured out what we could call the ‘front end’ of the whole enterprise. They did not know that there was a very deep backend to the deal. In their ignorance, they expected a facsimile to work and when it didn’t, they attempted to modify the front end to more accurately reflect the bits they had observed the Europeans use.

The cargo cult is an amazingly important metaphor for our age. Technology is increasingly becoming more complex and the effective use of this complex technology confers immense advantage. However, the more complex the technology, the more its use is dependent on a complex ecology within which it is developed. Transplanting the technology without the supporting ecology is a waste because it does not work as advertised. The technology — whether it is hardware, software, all sorts of institutions — co-evolved with other bits that form an ecological whole which make the whole system function whereas any subsystem in isolation will not work.

Let’s take an institution such as capitalism, for example. Hernando DeSoto in his book The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else outlines the missing bits in the case of capitalism. Another example: why did the shift to a market economy spell disaster for the former Soviet Union. A market economy has a very deep backend. That backend includes institutions such as the legal system which enforces contracts, a flexible labor market, a number of banking and financial intermediation institutions, and so on. Without the supporting institutions, the market institution is a non-starter. It is merely a cargo cult market economy.

In the area of digital technology also, we see the cargo cult mentality. The modern computer evolved in advanced industrialized countries (AIC). AICs have other systems that support the use of computers and these systems also evolved to keep pace with the rapid evolution of computers. Transplanting computers to a place where these systems don’t exist is silly because the computers are then like the props used by the South Pacific islanders. It is no wonder that they don’t work as advertised.

My final example of the cargo cult metaphor is the institution called democracy. Voting every so often to elect representatives that sit in a great big hall to decide matters of national importance is the front end. The deep backend requires an informed public at a minimum. Even under the best of circumstances, aggregating individual preferences is a risky venture as students of public choice theory will appreciate. (See Ken Arrow’s Impossibility Theorem.)

In the case of India, we have a cargo cult democracy. It looks like one with electronic voting machines and election speeches and manifestos, with pollsters and pundits, with election commissioners and voting stations. Only the deep backend is missing. There is no understanding of issues of substance among the people who vote. Put up a name which is recognizable, and they would vote for or against that name. Promise enough freebies (free electricity, for instance) and they will vote for you, never mind that it may bankrupt the state and that eventually it will impoverish the same voting public. For democracy to work, you need accountability — both among those who vote and those who are elected. In an area where the government is seen as a source for endless handouts by the people, and the leaders look upon their stint in the driving seat as an excellent opportunity to steal from the public, democracy is not likely to work. All the talk about the smart voter is so much hogwash that the mind boggles.

The Indian stock market is crashing. People are voting with their pocketbooks and sending an important signal. The signal, as I see it, is that the Indian economy is spinning around in the bowl and will soon be down the tubes as soon as the flush cycle finishes.

It is all karma, neh?

The AP results are in: Chandrababu Naidu is out

Andhra Pradesh (AP) election results are in and Chandrababu Naidu is out. He was an unusual CM. He wanted to make Hyderabad into a Singapore, and make AP a shining state. From what I hear, it appears that his stress was on the use of hi-tech for bringing about transformation. I am not too informed about what the game plan was but it appears that the common person did not obviously share his vision and they voted him out. Perhaps he fancied himself to be a Lee Kwon Yew and did not realize that unlike the Singaporean dictator, he had to seek a mandate from the masses. The masses are more interested in the short-run rather than the long-run.

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Politically Incorrect: India’s Corrupt Voters

I am never quite sure why people insist that the Indian democracy is so great. To me it appears to be the greatest curse imposed on India from up on high. It is totally politically (sic) incorrect to take this view, of course. But I don’t apologize for believing so and I am convinced that the Indian voter is corrupt.

Rajesh Jain’s blog has an item on lessons from India’s elections which got me thinking. The claim made by Shekhar Gupta of the Indian Express is that India’s voter has become smart.

Compared to whom? I ask. Compared to Shekhar Gupta?

I guess so since Shekhar Gupta claims that the Indian voter has become smart. For I don’t see any reason to believe that the Indian voter has changed in any substantial way. The Indian voter continues to be a narrow-minded, ignorant, casteist, bigoted, vacuous idiot it has always been.

Here is my reasoning.

  • Exhibit A: I look at the politicians of this country. To a first approximation, they are ignorant, bigoted, casteist, vacuous idiotic criminals. These bunch of unspeakable criminals (where I use the word in its literal sense) are consistently voted into power by the Indian voter.
  • Fact B: A population of wise, informed, well-meaning, broad-minded, intelligent voters cannot continue to vote a bunch of corrupt ignorant bigots as their political leaders.
  • Major Premise C: Voters reveal their character by expressing their preferences at the polls.
  • Minor Premise D: Leaders are endogenous to the group, that is, they emerge from within the group and so reflect the dominant traits of the group.

Mr Gupta writes that the voter is not swayed by charisma. Well, how would we know? We need charismatic people first and then if the voter is unmoved, we can say that it is true.

We do know that the Indian voter is swayed by “big names”, though. Why else would they trot out an uneducated chap (Rahul Gandhi) as the Congress mascot unless they were confident that the Indian voter will be swayed?

What else explains the tenacity with which the entire Nehru-Gandhi clan is totally into getting into the highest political positions? By their indomitable courage? No. Their astonishing brilliance in academics? None are really even educated. Their thorough understanding of the problems of development? Never done an honest day’s work. Their undying dedication to the hard task of nation building? Shirley, you jest. Their selfless sacrifice demonstrated by their social work? Not a bloody chance in hell.

What then explains the astonishing idiocy of the Indian voter to continue to vote the Nehru-Gandhi clan to power?

Let’s face the facts. I would have loved to report that we are a great democracy. We are not. If we were, we would not be facing the prospect of having an Italian aupair as the prime minister of a country of 1000 000 000 people. She says that she is loyal to her adopted country (never mind that she did not apply for Indian citizen for over a decade). Well, I would ask her whether she has any loyalty to the country that she was born in. No? If a person has no loyalty towards the land of one’s birth, I would not pay a tinker’s damn to any other oath of loyalty that the person takes. If you change your allegiance once, it is all too easy to do it once again. Indians who don’t understand that simple concept are idiots and I don’t care how accomplished they may be in their respective fields. If an Indian says that Sonia’s origin is not an issue for the prime minister’s seat, I would say that Indian is a moron.

I have met only a handful of politicians personally. I have known some of them well and all of them — every one of them to the last person — has accumulated vast sums of money through bribery and corruption. It is a random sample. I have no doubt that the vast majority of Indian politicians are corrupt. Politicians are endogenous to the population. They are random samples drawn from the underlying population. In other words, the sample characteristics give an indication of the population characteristics. The corruption of the politicians is the single most damning evidence that the voters are corrupt.

That is the law.

Democracy in India

Just like India is the world’s largest potential market, India is also the world’s largest potential democracy. I don’t think what we have currently in India to be a true democracy. It is what I would call a cargo cult democracy. It is instructive to examine explore the two ideas of democracy and markets in the Indian context.

First, markets. One of the most important lessons mankind has learnt is that markets work. There are, however, very important pre-conditions for markets to work. When those pre-conditions are not met, markets fail. That means, the workings of markets in the presence of failures leads to socially sub-optimal, and even harmful, outcomes. Indeed, if the necessary conditions required for markets to function are not met, market fundamentalism can lead to positively disastrous results.

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