Government by the people is crucial for India
As faith in institutions and liberal internationalism fades around the world, the solution lies in devolving governance
The World Trade Organization, European Union and G-7—global institutions wanting to bring order to international economy and trade—are shaking. The underlying principle on which these institutions were founded, of nations handing over jurisdictional rights to supranational bodies, is no longer acceptable to large numbers of citizens even within those countries that were founders of these institutions, of which the US used to be the undisputed leader. Social divisiveness is increasing within countries, authoritarian leaders are gaining power and liberties are being suppressed.
This is not a pretty picture for liberals who would like to see more individual liberties, more social harmony, and freer international trade and movements of people. In the past decade, several developments—such as Brexit, the election of US President Donald Trump, the elections of several governments with fascist leanings in Europe and Turkey, and the rise of communitarian politics in India—have made liberals, who were feeling at home in a globalized world, feel like “strangers in their own lands” (the title of an insightful book by sociologist Arlie Russel Horthschild about the rise of the Tea Party in middle America).
The Edelman Trust Barometer, an annual survey of citizens in 28 countries, which include the US, European nations, and India, reports that in two-thirds of the countries, fewer than 50% of respondents trust mainstream business, government and media. While businesses may selectively choose data from the survey to show that trust in governments may have declined more than in businesses, the most significant finding of the survey is that trust in major institutions of all kinds has reduced. Indeed, only 15% believe “the present system is working”; 53% do not.
We humans make sense of our lives not with economists’ numbers such as gross domestic product but through stories about who we are, where we came from, where we are going, and how we will get there. The big new story liberals made up after World War II was one of universal human rights, of democratically-elected governments to whom individuals would give powers to rule, and global institutions to which nations (who were wont to quarrel with each other) would assign global governance responsibilities. The right of every human being to choose, and to be whosoever she or he wishes to be, was an essential feature of this story.
Individuals were asked to hand over greater powers over their lives to remoter governments and international institutions for the sake of a universal good. Large industries grew—of self-help books, telling people to stand up for themselves and be happy, and of therapists helping them when they were not. The tension between the need to be in control and the fact of being less in control seems to have become too much now. Also, the institutions to which people were handing over power—political parties, governments, and international institutions—were not delivering what people needed. The narrative has broken down. People do not subscribe to this story any more.
Demagogues have stepped in, offering another powerful story about who the people were, where they were coming from, and where the demagogues would take them. They offer stories about the identities of people, the groups they belong to, and their collective destinies. To people alienated by remote, technocratic governance of their lives, these leaders offer a story with more passion and more meaning. “We will make ourselves great again,” they say. America first; Russian pride; take Britain back; India’s Hindu heritage. The people like the tune. They follow the pied piper.
Liberals are alarmed by the resurgence of nationalism and authoritarianism. To win the hearts and minds of people again, liberals will have to create a new story. The old one, of supranational institutions run by experts, remote from the people, will not work any longer. In the new story, there must be greater respect for national institutions to enable effective international cooperation. Within nations, power must be devolved to local levels. People must be able to govern their own lives more directly for the liberal vision of individual rights, as well as the democratic ideal of “government of the people, for the people, by the people”, to become a reality.
In a survey of 40 rich nations, the Organisation of Economic Co-operation and Development found that, on average, only 42% of people expressed “confidence in government”. But in Switzerland, the rate was 75%. Moreover, in the seven years since the previous survey, confidence levels in Switzerland rose by 12% whereas they fell by 3% elsewhere. Switzerland has one of the most devolved forms of governance in the world, with many powers exercised at the village level and with frequent, well-conducted, referendums on national policy matters.
Globally, a new economics is necessary for more equitable growth. Wealth is accumulating at the top and not trickling down fast enough. More “hands-on” local economies, rather than attempting to fix the invisible hand of global trade, will reduce poverty faster and produce more equitable growth.
A new politics is also necessary in which citizens feel they are active participants shaping policies that affect their lives. India is much larger than Switzerland and more diverse too. Coordinating India from the Centre would be even more difficult, and one-size-fits-all solutions will work even less. Therefore, a new economics and a new politics for India must be more local. M.K. Gandhi had the right vision.
It is time to write a new Indian story in which communities of diverse people, respecting each other and supporting each other, are the principal agents for making the world better for everyone. The most effective big-ticket reform that India’s leaders can make is to strengthen governance by the people in its cities and villages. It will strengthen India’s democracy, its economy, and its society.