Between yourself and me
The unlamented demise of the 'bebi-taxi'
How do we generate collective action? That is the million-dollar question. In a society where three individuals are capable of launching two political parties, one would have to ponder long and deep over that one...The chaotic road transport sector in the country, and particularly in the capital Dhaka, is almost a mirror image of the state of our democracy: loud, insensitive, brash and high on promises but low on delivery. The 'bebi taxi' was just a symptom of that grande malaise. Now that the symptom has been removed, perhaps we can now try and address the disease?
I am not sad to see the end of that little devil despite the 'adjustment costs' involved -- both humanitarian and financial (I refer to passengers' woes, unemployment amongst taxi drivers and so on). If it is of any comfort, at least they have had time to mull over its implications and adjust accordingly, even if imperfectly. We should also remember that we didn't get rid of it overnight. In fact, the process involved creation of public opinion -- for which civil society bodies and environmental lobbies can take some credit; a number of failed attempts in the past that have provoked strikes
, violence and disruption, and intense negotiations with the relevant 'transport associations' to reach an 'understanding'. In other words, it is useful to remind ourselves that these things do not happen just one fine day; nor is there anything automatic about them -- there is always a need for discussion and negotiation, and a determination to resist the temptation to, let's say, 'look the other way'. Now, just by way of comparison, let us remind ourselves that there are certain things that we CAN do overnight: throw out slum dwellers, for example, or bulldoze buildings that do not belong to US. However, as civil society becomes more confident, more mature, it will become increasingly difficult to go unchallenged so that the only way forward would have to be, I am afraid, through persuasion, dialogue and 'understanding' -- i.e. the plank that one needs for what economists call 'collective action'
The market
One could well argue about who benefits from the ban on the 'bebi' -- any action of this type will certainly generate some losers although it goes without saying that 'society' at large stands to gain. There will no doubt be a painful transition period when passengers suffer and owners fret as the market adjusts (quickly, one hopes). Just as nature abhors a vacuum, so does the market. The only problem is of course that the transport market is far from free: fares are controlled (even if badly enforced), cartels and associations abound, there is widespread toll-collection from vehicle owners, and import of public transports is closely regulated. The question now is whether we should leave the solution to the market or impose one from above. I rule out a pure market-based approach -- let us recall that the market did not get rid of the bebi, We did. And yet, the market cannot be totally ignored either. The trick will therefore lie in determining what We should do and what should be left to market forces -- and here lies the rub!
The city fathers operate from a certain premise: they exist for the sole purpose of doling out patronage to their numerous friends and hangers-on (for example, let me refer to the 25 % Mayor's quota for allocation of government shops!). A 'father', without any patronage to dole out will, in fact, soon find himself deserted by all his many 'children'. The same is true for other 'fathers' in the government, so one can well imagine the gravitational pull that certain restrictive policies will tend to exert. And if these can be justified by good economics (e.g. social costs exceed private costs of bus imports so we need a quota or licence or even partial ban) then what could be better? Under such circumstances rent-seeking could even be spiritually rewarding.
Let me side-track a bit here: now that 'bebis' are gone and rickshaws are banned from certain areas, why do we continue to have these horrendous traffic snarls -- even in the 'respectable' bits of town? This market isn't going anywhere, I fear. For better or for worse, we will have to rely on the entire gamut of devices used in traffic control elsewhere: management, technology, zoning, parking-no parking areas, single and double lines, and no-nonsense enforcement. In addition, we shall need to think very carefully about what type of vehicles (size, age, fuel-type etc.) we should allow onto our roads. In other words, there is more to traffic management than banning rickshaws.
The road in fact, can be compared to a common property resource, such as a river or a lake. The problem with such 'sarkari maal' is the propensity to (mis)appropriate, pretty much along the lines of the Buriganga or the Gulshan Lake, or failing this, to pollute, litter, dump, squat, spit or worse. As any economist can tell you these days, the market is terrible at dealing with common property of this sort.
Sarkari maal (or 'common property')
Darya me dhaal is the usual response -- that unfortunately is unsustainable, and arguably a primary cause of our underdevelopment. The 'correct' response is 'collective action', and as North would argue, it is this that distinguishes the men from the boys (the developed from the developing world)! How do we generate collective action? That is the million-dollar question. In a society where three individuals are capable of launching two political parties, one would have to ponder long and deep over that one.
One thing that must be said however: parliamentary democracy, a la Bangladesh is hardly conducive to collective action, indeed it seems tailor-made for collective chaos. After careful consideration of this central problem of our times, I have had to come to the inexorable conclusion that we need to be ruled, not by ghosts (of former Great Men) but by men or women of flesh and blood (some bony tissue would be a distinct advantage).
I began by talking about the 'bebi-taxi' and ended up by talking about democracy! Now lest I am accused of taking you for a ride, let me remind you that that there is indeed a connection. The chaotic road transport sector in the country, and particularly in the capital Dhaka, is almost a mirror image of the state of our democracy: loud, insensitive, brash and high on promises but low on delivery. The 'bebi taxi' was just a symptom of that grande malaise. Now that the symptom has been removed, perhaps we can now try and address the disease?
Goodbye 'bebi'!
Dr K A S Murshid is an economist and Research Director, BIDS.
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