Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
July 2006
Volume - 1
Issue - 3
Editor :
Hariprasad R.C.
Dear friends,
Have you ever observed how a
bud blossoms into a flower? To do
so takes immense patience. And yet
even if you keep observing you may C O N T E N T S
not be able to demarcate the exact
second at which it flowered. But
there comes a time when all of a
sudden you are aware that its no REALITY CHECK
longer a bud but a flower.
Mind Text is now at its budding
“CAPITAL PUNISHMENT”
stages. So our experiments with its
features are continuing in this issue
The Argument Goes on…
also. Your views, suggestions and
contributions can surely boost our CHAT SPECIAL
growth. We are patiently observing
and doing our best to see Mind aqgn-°pfw ime ˛ Hcp ]p\¿hm-b\
Text bloom and spread its
fragrance.
PUBLIC EYE
Wishing you a fruitful
experience,
Education or Edu “Anchor”?
Editor
(edit@cpprindia.org)
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Over Pairing Heart …!!!
BOOK REVIEW
Centre for Public Government Failure
Policy Research
Vaikom Road, Cochin - A Primer in Public Choice
Kerala, India - 682 301
www.cpprindia.org BOOK READING
E-mail : program@cpprindia.org
REALITY CHECK
! HARI SANKER !
“CAPITAL INTRODUCTION
The capital punishment has remained an
issue of not controversy. When the average
citizen is asked if he or she supports the death
PUNISHMENT” penalty, that person is an likely to give a
definite “Yes” or “No” for an answer. Capital
punishment has been an accepted form of justice
The Argument Goes on… through the ages. Geography, culture and
passage of time have varied its form and it’s
recipients. Today in most countries, it is an
integral part of the criminal justice system. It is
interesting as well as important to understand
how capital punishment has evolved through
the ages.
CONCLUTION
Through some people arguing in form of the abolition of the capital punishment in
this eve of the view that ‘life imprisonment’ in the best alternative to death penalty, it
should be realized that, in India, where the main bulk of population in still poor and
illiterate, the amount of defense produced by death is incomparable to any other form of
punishment. It is safer to have death penalty by the state Governed by “Rule of law” than
to wishes death penalty being imposed by innate individuals conditioned by “Rule of
lawlessness”, the former would provide at least some sense of social security and stability.
HARI SANKER - 5th Semester L.L.B (3 Yrs Course) Student, GOVT: Law College, Ernakulam. He
coordinates tea time chat for CPPR.
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MEERA U. MENON (Class XI) Student of Chinmaya Vidhyalaya, Tripunithura. Active member of Chinmaya Yuva Kendra (CHYK). Has won many prizes
for poetry writing, speech competitions etc.
Government Failure
- A Primer in Public Choice
By
Gordon Tullock, Arthur Seldon and
Gordon L Brady
(Cato Institute, 2005)
“Mankind soon learn to make interested uses of every right and power which they possess, or may assume.
The public money and public liberty...will soon be discovered to be sources of wealth and dominion to
those who hold them; distinguished, too, by this tempting circumstance, that they are the instrument, as
well as the object of acquisition. With money we will get men, said Caesar, and with men we will get
money. Nor should our assembly be deluded by the integrity of their own purposes, and conclude that
these unlimited powers will never be abused, because themselves are not disposed to abuse them. They
should look forward to a time, and that not a distant one, when a corruption in this, as in the country from
which we derive our origin, will have seized the heads of government, and be spread by them through the
body of the people; when they will purchase the voices of the people, and make them pay the price.”
Thomas Jefferson, Notes on Virginia, 1784
! D. DHANURAJ !
Public choice theory takes the same groups faced with the choice of doing what built upon. In Indian context, even though
principles that economists use to analyze is best for them or what is best for the the terms and usages may vary, the
people’s actions in the marketplace and group2. Public choice economists Gordon paraphernalia around the political class
applies them to people’s actions in Tullock, Arthur Seldon and Gardon L who form the public choices can be easily
collective decision making. Public Choice Brandy, contributors to this book in three identified with the theoretical arguments
theorists use the terms like “Volunteer’s separate sessions assume that although propounded by the public choice theorists.
Dilemma”, “Prisoner’s Dilemma”, people acting in the political marketplace This argument leads to the most debatable
“Collective Choice”, “Rational Choice”, have some concern for others, their main issue confronting; public choice
“Social Choice”, and “Voter’s Paradox” motive, whether they are voters, economists point out that there also is such
to analyse the various phenomena politicians, lobbyists, or bureaucrats, is a thing as “government failure.” along
envisaged under the scheme of things in a their individual self-interests. with “market failure”. Public Choice
society. The chief architect of the public The book deals on the public choice Theory argues that politicians are
choice theory James Buchannan (who under three sessions. The first part deals motivated by self interest — just like you
received Nobel Prize in 1986) says the with the theory of public choice written and me. By the end of the seventh chapter,
theory “replaces... romantic and illusory... by Gordon Tullock. Tullock introduces it is very much clear what the text conveys:
notions about the workings of terms like ‘logrolling3’, ‘rent seeking4’ and In The Wealth of Nations Adam Smith
governments [with]... notions that ‘tax avoision5’. It is a very systematic and postulated the concept of an ‘invisible
embody more scepticism1.” In fact, the analytical introduction to the topic. It hand’ that would lead individuals to
book ‘Government Failure’, a compilation provides valuable information on the further the common interest through the
of essays on public choice theory centres basic pillars on which the theory has been pursuit of their own self-interest. The
around the problem of individuals in
MIND TEXT 11 JULY 2006
success of the free market of private goods, led to more anarchy to say. The various policy issues and conflicting interests in India
compared to the failure of socialism’s in fact is the resultant of the so called lethargic and unreliable politicians of this
controlled distribution of private goods, country. Seldon’s argument drives this point home.
is a strong demonstration of this concept Essays in this book are thought provoking. For a beginner, the ideas are really
and Public Choice theory manifests it. mind bogging. Most of them are convincing also. It presents a different picture altogether
He discusses on various elements on how to look at the government and state. The reader can perceive different styles of
forming the Public choices like voters presentations both in US and UK context. These topics are rarely discussed in the class
(paradox syndrome), bureaucracy, rooms that is where the significance of this book stands.
federalism etc. He challenges the true To summarize this most important aspect of Public Choice Theory, I will quote a
nature of the representative characteristics paragraph from an essay by Paul Starr, “The Meaning of Privatization”7:
of a democratic system but at the same time “Public choice,” ill-named because the only choices it recognizes are essentially
agrees to the point that it is better than private, is both a branch of microeconomics and an ideologically-laden view of
many other fraudulent and turbulent democratic politics. Analysts of the school apply the logic of microeconomics to politics
systems. He cites scope for improvement and generally find that whereas self-interest leads to benign results in the marketplace,
in the system how the variation can be it produces nothing but pathology in political decisions. These pathological patterns
brought about by involving innovative represent different kinds of “free-riding” and “rent-seeking” by voters, bureaucrats,
and methodically acceptable voluntary politicians, and recipients of public funds. Coalitions of voters seeking special advantage
private managers providing the defined from the state join together to get favorable legislation enacted. Rather than being
public goods. particularly needy, these groups are likely to be those whose big stake in a benefit
In the second session, Gordon L Brady arouses them to more effective action than is taken by the taxpayers at large over whom
discusses theory in the US context. His the costs are spread. In general, individuals with “concentrated” interests in increased
narration on city management and the expenditure take a “free ride” on those with “diffuse” interests in lower taxes. Similarly,
public utilities provided by the private the managers of the “bureaucratic firms” seek to maximize budgets, and thereby to
agencies are indeed thought provoking. obtain greater power, larger salaries, and other perquisites. Budget maximization
He starts the discussion on the much results in higher government spending overall, inefficient allocation among government
debated policy issue of protection in agencies, and inefficient production within them. In addition, when government
international trade. He attributes the agencies give out grants, the potential grantees expend resources in lobbying up to the
interest groups and logrollers to get benefit value of the grants—an instance of the more general political dissipation of value”
out of it. In the significance of internet resulting from the scramble for political favors and jobs”
governance, threat to nations’ sovereignty (Footnotes)
and the discriminatory practises of a
world organisation (ICANN) 6 are
essentially dealt with. Though, the
technology was in infancy when this book
was written, his predilection has been
proved over the years. At least in India,
the competitive economy is very much
visible in the case of telecommunication
field in the last decade. As Brady does in Reference
this essay, if the history of 1 Jane S Shaw, Public Policy Theory
telecommunication in India is traced, one 2 Public choice economists point out that this incentive to be ignorant is rare in the private
sector. Someone who buys a car typically wants to be well informed about the car he or
could see how freedom of decision making she selects. That is because the car buyer’s choice is decisive—he or she pays only for the
identified with the requirements of the one chosen. If the choice is wise, the buyer will benefit; if it is unwise, the buyer will
market legitimised public choice (policy) suffer directly. Voting lacks that kind of direct result. Therefore, most voters are largely
at least in this regard. There is no ignorant about the positions of the people for whom they vote. Except for a few highly
publicized issues, they do not pay a lot of attention to what legislative bodies do, and
convincing public choice argument even when they do pay attention, they have little incentive to gain the background
substantiated by Brady in his essay on knowledge and analytic skill needed to un derstand the issues.
environmental policy. The cost – benefit 3 Public Choice scholars have looked at the ways politicians interact with each other, the
analysis has been over ridden without voters, and their supporters to achieve their own goals. Vote-trading, “log-rolling”,
giving adequate alternatives. wealth transfers, etc. are a few of the methods they use to obtain their own selfish ends
and, occasionally, at the cost of the citizens. An urban legislator votes to subsidize a
Arthur Seldon deals with the choice of rural water project in order to win another legislator’s vote for a city housing subsidy.
public goods (defined very early but not The two projects may be part of a single spending bill. Through such log rolling both
redefined in the course of time) in UK legislators get what they want. And even though neither project uses resources efficiently,
context which is equally relevant in any local voters know that their representative got something for them. They may not know
that they are paying a pro-rata share of a bundle of inefficient projects.
other country which follows socialistic,
4 Public Choice has much to say about the use of rent-seeking, which is the act of
west minister type of government. The obtaining special treatment by the government at the expense of the rest of us. A
intentionally made overdependence on a specific and major case of rent-seeking, the transfer of land to private organizations
welfare state is looked with dismay in this 5 Arthur seldom combines the words tax avoidance and tax evasion.
context. The rising income of families has 6 Internet Company for Assigned names and Numbering
not changed the policies of the state. It has 7 Leon Felkins, Introduction to Public Choice Theory