Politics / 28.08.2013

By Anjum Altaf A seminal book of the 20th century, at least for academics, was An Economic Theory of Democracy, published in 1957. In it, Anthony Downs applied economic theory to the study of politics and, among other things, inferred what a rational government would do given its incentives. At its simplest, the theory claims that a government aims to stay in power and therefore, if it is democratic, adapts its policies and actions to appeal to a majority of the electorate. For example, in the current run up to the elections in India, the general wisdom is that the ruling party would spend extensively in rural areas to negate a likely swing to the opposition in urban ones. (Contrary to Downs’ prototype, though, it seems it is not the effectiveness of expenditures that matters most to voter sentiment in India – it is the courting that...