Saturday, 9 May 2026

Priya Satia wrong on Empires

Scroll.in has an article by Priya Satia titled 'How modern empire broke the empire mould'

There are no modern empires. Those which existed were like previous empires even when contiguity was only achievable by sea. 

No previous imperial formation reshaped the world in such a way that has distorted our relations to the earth and one and another.

Nonsense! There literally is nothing new under the Sun. 

As the Israeli assault on Gaza yet again makes painfully clear,

Terrorism is counterproductive. Hamas is worse off now, as is Hezbollah.  

anticolonial movements of the last century won many of their battles,

They won all of them. There are no Empires. It is a different matter that some nationalities failed to create their own states- e.g. Kurds, Palestinians, Sri Lankan Tamils, Basques etc, etc.  

but they lost the war. The decolonisation of the minds of both colonisers and colonised that thinkers like Frantz Fanon and Gandhi called for failed to transpire.

Both had shit for brains. Fanon's people were smart enough to stick to France like glue. BTW nobody every had a 'colonised mind' anymore than women have been brainwashed into thinking they don't have penises.  

Even as demands for reparations, restitution, apologies,

compulsory gender reassignment surgery for all practicing male heterosexuals 

memorialisation and consecration of new human and educational values have crescendoed,

with Trump taking the White House?  

many remain susceptible to the notion that modern empire is a legitimate civilising enterprise that can be evaluated neutrally.

Nobody gives a shit. Only stupid people study or teach history or other genres of Grievance Studies.  

Besides its obvious racist foundations, that sticky presumption draws sustenance from easy conflation of modern empires with earlier empires: the British empire was no different from the earlier Roman, Ottoman, or Mughal empires

it was miles better.  

– why should it be singled out to make repair

lots of darkies in the UK. Maybe they are stupid enough to let the Government send a portion of their tax-money to the kleptocrats back home.  

for what was simply more water under the historical bridge?

as opposed to water squirted up the backside to ease constipation.  

Anticolonial thinkers and activists long ago disproved this theory,

by eating their own shit? 

exposing the particular moral and political indefensibility of European empire, but its enduring allure compels fresh reminder of how, even apart from the logical fallacy of “whataboutery”, it fails on empirical grounds: British colonialism (and modern European and American empire generally) departed dramatically from the goals, workings and effects of earlier empires.

They were better.  

Clearly, something very different had to have happened in modern history to land us at the unprecedented existential climate crisis in which we find ourselves.

Yes. Our lives improved tremendously because we were using fossil fuel much more intensively.  

In their particular preoccupations with materialism, territorial control, and managing social differences and similarities, modern European empires created the world anew.

No. The Oceanic Empires of the age of sail were like those of the Mediterranean or Indian Ocean. Then you have coal or oil powered factories & steamships & railways & Empires stopped mattering. The modern age of industrialised nation states made Empires obsolete. Sadly, this meant things got worse for a lot of people living in shithole countries.   

This is not to say that the Mughal or Roman empires were not oppressive in their own ways – their histories are full of stories of contestation and resistance (most famously, Jesus’s anticolonial challenge to Roman rule in Judea

There was none. The Romans did ban Jews from Jerusalem but themselves became Christian.  

) – but European empire reshaped the world in specific ways that need to be addressed for new, freer futures to become possible.

Nobody needs to address stupid shit which only exists in the minds of those who teach worthless shite.  

Anticolonial thinkers in the last century recognised that

if the coloniser fucked off then they'd have won. This happened before Priya was born.  

modern empire focused on material desire in a new way as the key to progress,

everyone focuses on material desire. Shite is taught by shitheads because they have the material desire for a pay-check.  

enslaving both colonised and coloniser.

in the same manner that the rapist is raped & the farter is the fart.  

After all, it began with the invention of a new kind of commercial institution: the limited-liability, joint-stock corporation.

Something like it has always existed in every type of mercantile society.  

From the late 15th century, Portuguese and Dutch trading companies introduced a type of state-backed armed trade aimed at monopoly that was

similar to stuff which existed in the second millennium BC.  

utterly foreign and disruptive to the commercial traditions and survival practices of the Indian Ocean.

No. The influx of bullion & new crops led to an economic boon. Populations increased.  

This aggressive, warlike mode of business was the only way the Portuguese could elbow their way into the tangle of Venetian, Egyptian and Indian commercial networks of the time.

Everyone was aggressive. There was a lot of piracy.  

Their intrusion launched a new era of racial and colonial capitalism

which has always existed. Guys of one race put together some capital and establish a colony on the other shore of the Mediterranean or Indian ocean or whatever.  

in which mass extraction and commodification of botanical and earthly matter, including human beings, entailed devastation of entire peoples and landscapes – epitomised early on by Dutch devastation of the Banda Islands

 Under Governor Alba, about 50,000 Dutch people were killed. War is expensive. It tends to be fought for control of valuable resources. The Banda island natives may have lost about 15,000 in war & deportation.  Incidentally, the Dutch employed Japanese mercenaries. 

for nutmeg and Portuguese ruin of Madeira

which was uninhabited when they arrived 

in the name of sugar.

It wasn't devastated. It thrived. It shifted to wine because it couldn't compete with vast plantations in Brazil etc.  

The Dutch empire became yet another of the empires that inspired, and justified, British efforts to build their own.

The Brits were rivals for the Banda islands. What justified spending lots of money was gaining even more more. 

In the subsequent era of British dominance, while officials in the high corridors of power regularly contrasted the humanity of British rule to the oppression of the regimes they displaced, their policies produced famine and desolation that forced officials on the spot to question their self-congratulating rhetoric.

No. Nobody cared. Famine is cured by getting local rich people to feed local poor people. If they won't do it voluntarily, a tax has to be levied. But they may cause a rebellion. If you don't get sacked for presiding over a famine- that's the safest way to go  

The empire continued to depend on unfree labor well after abolition in 1833.

People in prison aren't free. Some make or do stuff with commercial value.  

By the late 19th century, the British ruling elite came to stoically accept that the ruin of certain peoples and landscapes was historical necessity for the sake of global material progress.

Everyone had already accepted it long long ago.  

In 1868, noting “the now inevitable destruction of the Red Indians”,

which hasn't happened 

the British politician Charles Dilke

whom nobody gave a shit about. The only thing people remember about him is that he fucked his brother's mother-in-law before marrying her daughter. I mean to say- what? what? The fellow might as well be French! 

explained that the “true moral of America” was “the vigor of the English race – the defeat of the cheaper by the dearer peoples, the victory of the man whose food costs four shillings a day over the man whose food costs four pence”.

We get it. He was a shithead. So what? 

This type of empire asked its agents and subjects to suppress ordinary ethical instincts to engage in “necessary evil” for the sake of future vindication in the form of progress measured in material terms.

This has never happened. You apply for a job for an economic reason. Only if it is part of your job to talk about 'future vindication' would you do so. 

Hence did anticolonial leaders like Gandhi counter that freedom lay in the capacity for moral accountability in the present,

Slaves have this capacity. Freedom means choosing to do what you like. If someone says 'kindly give a moral justification of your actions', you reply 'fuck off! I can do what I like. I'm not accountable to anyone.   

regardless of consequences (a definition lately echoed by the London-based political theoris Lea Ypi).

No. She is Albanian, not Stupid. 

Such ideas contest the seductive notion propagated by modern empires,

There are none.  

that material wealth is a measure of civilisation.

We measure wealth. We don't measure civilization or niceness or cuddliness.  

(Even the non-capitalist Soviet empire was anchored in this assumption, planning and measuring “development” in terms of industrial output.)

rather than cuteness.

Certainly, earlier empires were extractive in their own right, often excessively so.

Some were really into human sacrifice.  

However, unlike the indigenous or indigenised imperial rulers they displaced, European colonisers did not typically invest the wealth they extracted back into the country.

Yet, they were preferred. 

In the 18th century, the Mughal historian Ghulam Hussain Khan called out the traits that distinguished British colonialism: a disinterest in putting down roots and a sense of “divine obligation” to scrape “together as much money as they can in this country” and carry it home.

Which was preferable to their settling down, kidnapping lots of girls to fill their harems & chop the bollocks off a lot of boys so they could serve as eunuchs. That's why the Hindus in Bengal were happy that the English defeated the Muslims. But the Muslims of Delhi, too, preferred British rule to Maratha rule.  

Mughal trends in managing food security and water are known to have been better.

They had one job- viz. not losing wars. They couldn't do it.  

The greed-driven British “craze” for machines, Gandhi argued, atrophied the limbs of man and encroached on his individuality (unlike, say, the spinning wheel).

He was wrong.  Spinning & Weaving suck ass big time. Priya, on the other hand, refuses to have a vacuum cleaner or a dish-washer or a washing-machine in her house. 

There are empires and there are empires. As Raj Patel and Jason Moore put it, “There had been massive empires before capitalism – think of the Romans or the Mongols. But never before in world history had there been transoceanic empires that scoured the globe for profit-making opportunities.”

Because never before had the globe been circumnavigated. But this was done by Kings- not Capitalists. Magellan served the King of Spain who financed his expedition.  

Britain alone ruled over a quarter of the planet.

Santayana said 'the world never had sweeter masters'.  

This materialism depended on new notions of state power and territorial occupation.

No. They remained the same.  

Earlier empires had typically depended on layered notions of sovereignty and suzerainty.

Which is what obtained in the British Empire.  

In borderlands, the power of adjacent states might overlap, and in various regions state power might be shared with powerful local authorities and institutions.

All true of the British Empire.  

The British empire took shape in this world: with the British East India Company allowing the Mughal emperor to retain de jure sovereignty while it held de facto sovereignty.

There were plenty of de jure sovereigns under the British King Emperor.  

In addition, the British Crown held ultimate sovereignty over company territories, but whether it could claim their revenue depended on whether they were understood to have been conquered or purchased.

I suppose Berar is meant. Its revenues were meant to pay for the Hyderabad contingent. In practice, the Viceroy could do what he liked & his officials would find some way to make the thing kosher.  

Affirmation of property as a natural law and moral principle helped manage the confusion between conquest and commerce.

Which was meaningless. Consider the Royal proclamation of 1763. Taken literally, most of Canada belongs to First Nations. But it doesn't mean shit.  

To guarantee the “permanency” of their acquisitions (mindful of the fate of the Roman empire), British imperialists established regimes of property rights in their domains.

No. The Brits knew 'property rights' have no magical powers. To make your acquisitions permanent you need to kill and inflict great financial harm on anyone who tries to take them from you.  

The empire came to treat sovereignty, too, as something held exclusively and thus transferable as a commodity.

Which has always been the case unless it had never been the case.  

British government and private entities bought, sold, and leased sovereignty over places as diverse as Jammu and Kashmir, northern Borneo, Hong Kong and beyond.

So what? America bought Louisiana & Alaska.  

Modern European empires idealised clear, policeable borders, traceable on a map – indeed, often first defined on a map and then realised on the ground.

Darkies didn't have maps. They were too stupid- right?  

Fixed boundaries and exclusive title were considered essential to the fiscal and demographic legibility that enabled extractive policies.

Also, evil Whites insisted that all darkies choose between having a dick or having a vagina. Previoulsy, darkies could fuck themselves every which way.  

Today’s world order based on the unit of the nation-state has consecrated this form of territorial control as a universal norm.

That has been the case for thousands of years in India China, Europe, MENA etc.  

The nation-state was coeval with modern empire.

No. In Western Europe, tribal-confederacies turned into nations- generally defined as a people with a common language or, at least, a 'sprachbund'. Some were unified as limited monarchies of a hereditary type- e.g. England, France, Scotland- others were looser federations with an elective Crown- e.g. Poland & Germany. 

Nations are ancient. Modern empires, by definition, can't be coeval with them. 

The internal colonialism through which “Britain” was forged as a political space from its constituent regions of Scotland, Ireland, Wales and England informed and was informed by colonialism abroad.

Ireland was conquered & then reconquered. Scotland was in personal union with England under Stuart monarchs. The Scots experienced economic reverses in the 1690s & the English played hard ball by passing an act in 1705 which would have turned Scottish people on English soil into aliens. Scotland would lose about half its trade unless it agreed to the Union. Colonies weren't important at that time. 

Disciplinary drainage of the unruly fenlands

It was economic. England gained food security. There has been no famine since 1622.  

of eastern England coincided with British “settling” of landscapes in Ireland and North America.

Why the scare quotes? Lots of Europeans were settling in the Americas.  

The new form of political territoriality abroad was tied to the rise of private land ownership in England, too.

No. There was private land ownership by the end of the 12th century.  The 1290 statute, known as Quia Emptores) stopped the creation of new feudal sub-tenures, effectively allowing land to be sold rather than just sublet, paving the way for easier transfer of land ownership.

Early modern English elites had held land, but ordinary people had also had substantial use rights and power to negotiate rents, nurturing inter-generational attachment to land even among tenant farmers.

No. There was serfdom. The feudal lord, or Monastery which owned the land was welcome to replace men with sheep. The Cistercians pioneered the 'wool revolution'.  

In the modern period, thousands of enclosure acts turned common lands, heaths, greens, and “wastes” that were used by all, into private property, while settlers (many drawn from among those pushed off English land) and administrators conquered and privatised land around the world.

The first enclosure acts date from about 1604 but enclosures had been happening since the late twelfth century.  

The making of France was similarly a process of imperial conquest from Paris outwards to the regions

No. The Francs had invaded & imposed their Kings & aristocrats on the Romanized Gauls whose superior culture & language prevailed. The Church played a great part in this. France's problem was that some of the feudal lords were more powerful and richer than the King in Paris.

that make up the familiar hexagon today, and the formation of the United States and Germany was inseparable from their expansion both overseas and within their immediate regions.

The US was about settlers expanding westwards. Germany had to first get rid of the Holy Roman Empire & then achieve a degree of Economic union (the Zollverein). Prussia's military victories- rather than a democratic process presided over by the Frankfurt Diet- unified Germany (but left out Austria).  


This new culture of exclusive claims to territory

began in pre-historic times. Man is a territorial animal.  

constituted a dramatic change in how humans and states related to the land. Fredrik Albritton Jonsson and Carl Wennerlind write, “Land ceased to be the existential and spiritual foundation of the community,

Slavery or serfdom was the existential and spiritual foundation of the community.  The Church said that if you were obedient to your superiors on Earth, you would gain Heaven. 

Land is still the foundation of communities. Human beings live on land. They don't float around in the air.

and instead was turned into exclusionary and alienable pieces of property, existing solely for the purpose of accumulation.”

If you own a house & don't let strangers enter it at will, they you are being 'exclusionary'. Moreover, if you sell your house for a profit, you are guilty of 'accumulation'.  

The philosopher Thomas More discerned when this process began 500 years ago, that enclosed, privately held land had unleashed an unprecedented social reality, driving elites into an insatiable quest for wealth to gratify false pleasures and driving everyone else, stalked by the threat of poverty, to forever seek more.

Thomas More has slaves in his Utopia. England had given up slavery.  


Philosophers like John Locke responded to the resistance triggered by this new reality by arguing that those who did not cultivate the land with a view to improving it forfeited any entitlement to it.

A convenient doctrine since it was those with capital who could raise the productivity of agricultural land. Still, it must be said, England did achieve food security.  

For Europeans, explains Gili Kliger, sovereignty came to mean “power over land”,

Whereas for the Moghuls, sovereignty meant power over the birds in the air.  

while many indigenous peoples conceived of it as “power shared with land.”

They would often ask the river to go drown the invaders. Sadly, rivers are terribly lazy. The mountains, on the other hand, would often participate in diplomatic missions when they weren't too busy sitting on Parliamentary committees.  

It is difficult to know what indigenous peoples understood by signing away their “sovereignty” in treaties with the British or the United States; colonialism was enabled by European translation of words that lacked indigenous conceptual equivalents, because they emerged from a radically different view of the working of human and divine power in the world.

It is easy to understand that they wanted a temporary respite or benefit of some sort (e.g. some nice shiny beads). The question was whether the settlers would gain enough military strength to kill or drive away those of the indigenous people they hadn't turned into slaves or badly paid servants.  

Certainly, practical reality on the ground in European empires often remained marked by porous borders,

They still are a little too porous.  

a cacophony of legal regimes, and political fragmentation, but from the late eighteenth century, these empires fostered the geopolitical and linguistic proliferation of the idea of sovereignty as territorial statehood

which had always existed. The first written treaty we know about is that between the Egyptians (who lived in Egypt) & the Hittites (Anatolia & Syria). It was concluded in 1295 BC. 

– exclusive claim to and power over bordered space.

Which is what Pharoah Ramesses II had over Egyptian land &  Hattusili III had over Turkey & Syria. 

An instrumental view of land, and earthly resources more broadly, was necessary to their terraforming goals.

People have been 'terraforming' for tens of thousands of years. They were gathered into tribes or nations founded on the unification of tribes.  The Old Testament describes the formation of the Jewish nation & its frequent struggles for territory with other nations. This process continues to this day. 

In fact, as climate and environmental experts now recognise, indigenous ways of relating to the land were more sustainable, grounded in careful husbandry of land, forests, and water resources with a view to perpetual mutual preservation of land and life.

It appears likely that overgrazing by pastoralists contributed to desertification in North Africa. Humans have been responsible for several extinction events relating to 'mega-fauna'.  


Thirdly, ideas about racial difference reshaped human relations under European empire.

Ideas about racial differences appeared tens of thousands of years ago.  

Slavery and violence were integral to the Roman empire,

& the Aztec & Maya Empire 

but prejudice based on distinctions of skin tone, features, and hair texture was not a defining feature of the system.

It had been. However the Roman Emperors began expanding citizenship, first to Italic allies & specific towns till, by the Edict of Caracalla (Constitutio Antoniniana) in 212 CE, full Roman citizenship was granted to all free men and women throughout the empire.

Moreover, the Romans maintained diplomatic, military and commercial ties even with the Germanic peoples they considered “barbarians”.

They tried to conquer them. They failed. But, in border areas, there was considerable inter-marriage & Romanization.  

The British and French empires, however, embedded racial distinctions in structures of governance

Not on their own territory. A black man was welcome to stand for Parliament in the UK. Thomas-Alexandre Dumas, who rose to be a General in Revolutionary France, was born a slave (because his mother was a slave) in the West Indies. His father took him back to France where he became free immediately because slavery had been abolished there in 1315. 

and the social hierarchies on which they depended, including military recruitment,

Armies took what they could get.  

practices of war,

If the other sides practices are better, you either imitate them or suffer defeat. 

policing and criminal punishment, urban planning, public health and labor policies, education, and beyond.

There wasn't very much being done by the Government in any of these departments. Either there was local provision or the thing was absent.  

Their imperialism was premised on the notion that non-white peoples (including the Irish), lacking conscience and virtue, required paternalistic government by Europeans.

Only if it was profitable to do so. But, if it was profitable, that was all that mattered. Either you did it or your rival did it & got richer than you & thus gained more military power.  

In the second half of the 19th century, the cultivation of “scientific” racism (and persistent resistance to European rule) cast doubt on whether this civilising mission could ever be accomplished, fostering support for conclusions like Dilke’s, that the “extinction of the inferior races” was “not only a law of nature, but a blessing to mankind”.

There was also a Eugenics movement. Perhaps people of the lowest class should be sterilized or otherwise denied reproductive rights.  

If belief in human difference justified colonial rule

It didn't. Either the thing was profitable or necessary for a strategic reason (e.g. control of a shipping route).  It was a different matter that Missionaries could collect funds to go convert the Cannibal.  

and its violence, the goal of reforming colonial societies by fostering uniformity within them added further legitimacy. Earlier empires, like the Mughal empire, sought power and revenue but did not seek to homogenise their subjects; they did not dream of turning all Hindus into Muslims (despite myths dating to the British era of forced mass conversions).

Some Mughal Emperors relied on Hindu Generals & Revenue officials. They did dream of converting kaffirs because this was recommended by their religion. It was the English who didn't care about religion or race though they tended to be respectful of traditional aristocracies.  

Their outlook was pragmatic, focused on cultivating loyalty and revenue, not some utopian end.

So, nothing much changed. Still, Hindus preferred British rule to Muslim rule. Sadly, in many cases, they also preferred it to Hindu rule.  


Europeans, however, sought to transform the people they ruled in the name of a “civilising mission” – turning Indians into Englishmen and Africans into Frenchmen and so on (however infinitely long the imagined timescale for that process).

Nonsense! The Brits insisted that Indians learn at least one Classical Indian language and one vernacular language. They insisted that Princes appear in native costume.  

Coexistence with the alien was impossible in the British imperial mindset, but anticolonial rebellions like the 1857 uprising in India refused the modernising uniformity the British were imposing in defense of a social order offering the opportunity and obligation for ethical navigation of difference.

i.e. killing Whitey. The problem was that after killing Whitey, it would be a case of killing wealthy darkies or darkies belonging to a different religion.  

As Rabindranath Tagore put it in 1921, “[O]nly those who are different can unite.”

Which is why Nicaragua and Norway are one united Nation. 

Likewise, no homogenising end justified the Ottoman empire,

It did try to modernize in the mid nineteenth century with the Tanzimat reforms. It would be fair to say that the Ottomans favoured Sunni Islam whereas the Safavids championed Shia religion.  

even despite the sultan’s status as caliph; such empires did not purvey a narrative of suffering for the sake of historical progress.

Nobody purveyed any such narrative- except maybe Stalinists seeking to justify the man-made famines of the USSR.  

To be sure, by the 19th century, European power had intruded so much into the Ottoman empire

which, at one point, occupied a sizable portion of European territory.  

that it began to adopt European-inspired practices and goals in the hope of recuperating a measure of autonomy and fending off further dominance and territorial loss.

The Caliphs failed. Ataturk succeeded.  

Napoleon’s invasion of Egypt in 1798 prompted “modernisation” efforts that testified to the way European ideas of sovereignty, economic development, militarism, national identity, and governance were becoming global norms.

The Egyptian Khedives, of Albanian extraction, initially did a good job of modernising. Sadly, they squandered a lot of money & fell into debt peonage.  

The Ottoman Empire took an increasingly “civilising” approach towards certain communities, such as nomadic Arabs, Albanians, and Kurds. Turkification policies became powerful in the 20th century. The relentless encroachment and aggressively asserted norms of European empire fed perceptions and policies that culminated in the Armenian genocide.

No. Armenians were Christians and viewed as a Fifth Column. Later the Smyrna Greeks too were targeted because of some hare-brained scheme to create a greater Greece.  

We can consider the post-19th-century Ottoman empire among the group of European empires that today owe apologies and reparations, while understanding that it was itself in a colonial relationship with European empires.

It wasn't. It was sovereign. Its mistake was to side with Germany in the Great War.  

Whatever Ottoman elites’ “civilising” vision, the state’s ability to fulfill it remained curtailed, preventing them, for instance, from eradicating pastoral life in the Syrian interior as the British did in Malwa Punjab.

Ranjit Singh followed similar policies. Pastoralists still exist in the region. However, irrigation means that former pastoralists became prosperous farmers.  

This is why the iconic scholar of Western imperialism Edward Said

He knew nothing of the subject. He taught literature.  

acknowledged the imperialist nature of Istanbul’s dominance of the Arab world but stressed the “unique coherence and…special cultural centrality” of the “British, French, and American imperial experience”.

America never had an Empire. True, it did rule the Philippines for forty or fifty years. But, by the mid 1930s, Congress was determined to get rid of it.  

For him, Napoleon’s invasion, accompanied by the team of scholars who produced the encyclopedic Description de l’Egypte, exemplified the “scientific appropriation of one culture by another,”

Victor Hugo, complaining of Germany's lead in Sanskrit studies, complained that 'India went and turned into Germany'. But Germany had no colonies at that time. An Archaeologist from Norway excavating Aztec tombs isn't a colonialist in disguise.  

announcing orientalist scholarship’s new mission of not merely representing but constructing “the Orient”.

Did you know that the Indian penis was constructed by Professor Smythe? Previously, no Indians had penises. The country was a Lesbian collective. 

Like the Ottoman empire, the nation-states that emerged from the rubble of European empires hewed to their inherited norms.

No. They became Republics. Previously, when a country became independent- e.g. Greece or Bulgaria- they imported a German Prince to act as monarch. After the Great War, this 'norm' was discarded save in Albania which was ruled by an indigenous King because no foreign prince was interested in the place. 

Indeed, the goal of nation-statehood provided the alibi for colonialism:

No. After the Great War, League of Nations mandated territories were divided into classes. Those in the highest class were to be fast-tracked to full independence. But, in India, there was already a slow but sure process of transition to 'responsible', if not 'representative', Government. Like the settler colonies, the aim was to turn colonies into self-garrisoning, self-administering, Dominions. By the mid Twenties, it was obvious this meant complete Independence. 

the British often protested that they were merely shepherding that universal process along in places lacking the innate capacity for historical evolution – empire as the handmaiden of national progress.

They didn't need to do any 'protesting'. So long as they had the mightiest navy, the colonies needed them more than they needed the colonies. Why? The colonies did not have a strong enough manufacturing base & thus would remain dependent on exporting primary products so as to import manufactured goods.  

The nation-state would embody the principles of sovereignty, material progress, homogeneity, and righteousness propagated by modern empire.

No. During the inter-war period, there was a belief that 'pluralism' was possible.  Loose federations would be created. There would be 'cantonization' & some elaborate power sharing scheme featuring quotas for different ethnicities. 

The critical distinction between European empires and the Asian empires they destroyed is not that the former were land-based and the latter straddled seas.

Yes it is. Land-based Empires can have greater uniformity- e.g. Tzarist Russia or Manchu China.  

It is rather the homogenising attitude towards people and territory that has come to define nationalism and the modern state everywhere.

There is no such attitude. 

The postcolonial Indian and Nigerian states preserved much of their inherited imperial state structures and outlook and have faced repeated separatist challenges from those who refuse their homogenising visions and the poisonous forms of exclusion they entail.

No. India is mainly Hindu and hangs together for that reason. Nigeria was created because the Brits thought the South could subsidize the North which otherwise would be ungovernable (at least in parts). Under Nehru, there was plenty of ethnic cleansing of Muslims. A law was passed preventing those who fled across the border in panic from returning to reclaim their property and their citizenship. This wasn't 'poisonous' at all. Under Nehru, all the Hindu majority areas had a considerable Congress party presence. Homogenization was based on the khaddar 'Gandhi topi' though Civil servants wore a modified version of the 'Nehru jacket'. However, Hindi was not imposed though it has spread organically well enough.  

Likewise, the People’s Republic of China functions less like the Qing empire did in the same territory than like European empires did in their territories.

It is a Communist country. It functions like the old Soviet Union. The Party retains control rights over everything.  

It was the anticipation of these continuities that caused many major anticolonial thinkers to reject nation-statehood as the goal of their struggle,

There were no such thinkers.  True, particular individuals- e.g. Tagore- who stood to lose from the withdrawal of British forces- opposed Nationalism by talking confused bollocks. 

recognising it as an extension of the imperial outlook and the destructive force it had proved in successive world wars. As they focused on freedom from state oppression rather than national emancipation, they imagined and struggled to realise federal or otherwise decentralised alternative futures.

The Brits were promoting federalism. Nehru rejected it.  

This is what made their tactics useful even in struggles against oppression within states, such as the African American struggle for racial equality in the United States.

Which was based on changing the law & then building coalitions able to exert influence on Governors & Presidents. 

The impulse to justify modern empire by insisting on its continuity with earlier empires is not new.

It would be fair to say that Pax Romana meant peace, prosperity, & technological progress for centuries. Pax Britannica was similar. Having colonies helped pay for the Royal Navy which is what kept the home islands safe from Continental tyrants.  

In empire’s very heyday, British policymakers themselves used analogies to earlier empires to soothe their uneasy consciences.

What soothes the conscience is the knowledge that you are getting rich.  

Edward Gibbon’s classic 1776 account of the “decline and fall” of the Roman empire appeared when Britain’s relations with its American colonies were in crisis, bolstering hopes that Britain might avoid the decadence and corrupting contact at the margins of the empire that, Gibbon believed, had led to its predecessors’ downfall.

Many Brits felt that mercantilist policies were holding the country back. In any case, if the Americans could defeat 'booted Hessians', then they could, by themselves, expand into Spanish, French & First Nation territory.  

For modern Britons, history itself, the chance at renewing, indeed redeeming, the epic Roman past, elevated their own imperial aspirations.

The Romans were  a land-based Empire. Britain didn't want to conquer France & Italy etc. It wanted to get richer through trade & manufacturing industry. The fact that it had high quality coal meant that it was the first country to industrialize on the basis of fossil fuel.  

In Joseph Conrad’s 1899 novella Heart of Darkness, the sailor Marlow, comparing the British empire to the Romans, admits that “The conquest of the earth, which mostly means the taking it away from those who have a different complexion or slightly flatter noses than ourselves, is not a pretty thing when you look into it too much. What redeems it is the idea only…something you can set up, and bow down before, and offer a sacrifice to…”

This is irrelevant. Marlow was talking about the Congo which was a 'Free State' supposedly ruled according to up-to-date, humanitarian, rules of laissez faire. Incidentally, the Ethiopians had defeated the Italians three years previously. You can't take stuff away from darkies if they have guns which are as good as yours. 

 The British Empire was based on the rule of law. That is why British people were disgusted at what was happening in the Congo. They forced Belgium to take over the place and run it as a proper colony. 


The British found salvation not only in walking in imperial steps hallowed by time

No. They found salvation in Lord Jesus Christ.  

but in flattering comparison of their “devotion to efficiency”,

It was the Progressives in America who talked of 'efficiency'. In England, the Fabians did use similar terms which is why they were allied with Haldane who helped create Imperial College & the LSE. But it was Haldane's Army reforms which mattered most.  

whatever its results, to their predecessors’ naked greed. Conrad skewered this self-deception, exposing the “darkness” masked by empire’s cover story of “civilising mission”.

He could only do so if he was talking of an Imperial possession- e.g. British India. But he never wrote about any such place. 

He and other 19th-century Britons knew their empire was doing something new.

No. They knew they were doing what Spain & Portugal had done at the end of the fifteenth century. Charles V, who was born in 1500, ruled over an Empire over which the Sun never set. England could make no such boast till the end of the eighteenth century.  

Reflecting on invasions since ancient times and “the now inevitable destruction of the Red Indians…of the Maories, and of the Australians by the English colonists,” Dilke realised, “The Anglo-Saxon is the only extirpating race on earth.”

He was better at adultery than intellectual cogitation. It was fucking obvious that the Spanish had done a lot of extirpating in the Americas.  

In World War One, though the British camouflaged their conquest of the Ottoman empire’s Arab provinces as a resurrection of the tradition of imperial improvement embodied by the Persians, Seleucids, and Parthians, they knew their government used “armed forces to do with explosives what should be done by policemen and sticks”.

The Brits celebrated their victories. But they accepted them as League of Nations mandates to be fast-traced to independence. The turning point was Allenby- who defeated the Turks- insisting that Britain accept the formal independence of Egypt in 1922. Ireland & Afghanistan got the same thing in the same year. India got nothing because Gandhi unilaterally surrendered.  

We can’t draw the same analogies to a “new Rome” today to justify the new imperial practices they enabled.

Moscow considered itself the third Rome (after Byzantium) which is why its ruler was termed the Tzar (Caesar). The Holy Roman Empire turned into Germany under a Kaiser. Queen Victoria, it is true was given the title 'Kaiser-e-Hind' (Caesar of India) but this was because her daughter had become Empress of the Germans & Disraeli wanted to put England's monarch on an equal footing. This annoyed the fuck out of Queen Victoria's grandson who one said that the Great War would be worth it if his British cousin lost his Indian Empire. 

Though empire has always been integral to human history,

It never has. We are doing fine without any such thing.  

we have only once – now – been on the brink of environmental collapse:

We really aren't.  

a unique type of imperial formation and global order led to this unique historical moment.

Nope. The same shit was happening all over the world under very different types of regime. As Indira Gandhi observed, fifty years ago, in India it is poor people who are doing most of the Environmental degradation. There is a 'tragedy of the commons' which particularly afflicts poorer countries.  

This is not to say that modern empires had nothing in common with preceding imperial formations. Glimmers of their dynamics are evident in even earlier polities – take Venice and Genoa’s 13th-century armed contest over trade in the Aegean Sea.

Which were like the struggle between Phoenicians & other ancient polities in pre-history. 

The British looked often enough to (a mythical version of) ancient history for it to have had real influence.

No. They focused on profit. This was a nation of shopkeepers. Geography was important. Maps show you where treasure can be gained. History is about chaps. Dead chaps. Who gives a fuck what they got up to? 

History is always a story of continuity and change.

Priya's History is a fairy story.  

But no previous imperial formation embraced all these four features (material measures of progress, exclusive sovereignty, racial hierarchy, and homogenisation),

There is no existing 'imperial formation'.  

which together radically distorted our relations to the earth and one another, leading to our present planetary crisis.

So, something which clearly does not exist is causing some imaginary evil to create a crisis for the planet. Why not say 'shape shifting lizards from Planet X are anally probing us every night? This is causing the planet to get very hot under the collar. No previous Empire was run by shape shifting lizards. That is why those Empires were objectively real. Our present Empire is completely invisible and undetectable.'  

To say this is not to say that European people were especially bad and that British and French people today must don hairshirts.

Europeans are so good that non-Europeans are happy to settle in Europe despite high tax rates.  

That is not the point of understanding this past (whatever politicians like former UK home secretary Suella Braverman may opportunistically claim).

Her parents decided it was better to live in a place still ruled by White Christians. They were right.  

It merely helps us grasp the origins of dominant cultural notions that have not served us (including British and French people) so that, by redistributing financial, moral, and cultural capital, we might recover alternate notions and make new history going forward.

Let us give away our money & power to useless people who stupid paranoid lies. That way our lives will turn to shit almost immediately. Why wait for some imaginary Apocalypse? 

The stakes for such understanding are high for relations between societies but also within them. If failure to reckon with the imperial past allowed nostalgic and xenophobic sentiments to fuel the disaster of Brexit in the United Kingdom,

This is like saying 'failure to reckon with the Wounded Knee massacre led to the re-election of Donald Trump'.  

failure to address the Ottoman Empire’s evolution in its last decades enabled the rise of Erdogan’s right-wing Justice and Development Party in Turkey.

No. The military fucked up. Secularists pissed off the Islamic majority. This has nothing to do with the the Ottomans.  


In his address to the US Congress in June, Indian Prime Minister Narendra Modi said that India had attained freedom after “one thousand years of foreign rule”, a pernicious elision of British with Mughal rule that has enabled his government’s erasure and distortion of Muslim presence in India.

He was saying 'Sonia is Italian. She wouldn't let Manmohan rule. That's why corruption has increased so much.' 

How did Sonia come to rule India? The answer is that her hubby's grandfather had presided over the ethnic cleansing of Muslims & the denial of any type of affirmative action to them. They became second class citizens and a 'vote-bank' for the ruling party. Just recently, in West Bengal, Muslims haven't voted for Mamta despite her warning that they will all be beaten, sodomized, decapitated & forced to adopt vegetarianism if her former lieutenant, Sunendu Adhikari, becomes Chief Minister.  

Failure to recognise the novelties of European colonialism has abetted continued settler colonial violence in Palestine.

There is more violence in Syria. I suppose, as the US withdraws from the MENA, Israel will be let off the leash & so 'settler colonial violence' will end with mass expulsion. 

The qualities that distinguished modern European empires

none exist. They all perished before Priya was born.  

from history’s earlier empires are material and persist in structuring our world

Not really. How many people in Indonesia speak Dutch? Very few. But plenty speak English. 

and are the ground from which we must make new history as we stand on the precipice of survival.

You can't make history by telling stupid lies. Those who excel in STEM subjects can help create new technologies which don't just increase our chances of survival, they enable us to spread across the galaxy.  

Tuesday, 5 May 2026

Intuitions of Beauty vs Bayesian Utility



That Kant's Truth is Keats' Beauty
Not Bayesian Utility
Is simply to say
Kalman filters are totes Gay


Copilot's sonnet on Epistemic sets as Skhorokhod spaces


Sonnet: On Worlds That Walk in Time

A world is not a point but paths that glide, Right‑continuous through time with sudden leaps; Each curve a life the knower must decide, A thread of truth the mind observes and keeps.

What’s known is carved from all that can’t be told— The futures branching where the jumps may lie; Yet as the hours pass, the veils unfold, And indistinct paths slowly unify.

For knowledge grows along a filtered stream, Where histories diverge, then fall away; One towering path may dominate the scheme, Its rise outpacing all that others say.

Thus worlds are woven not from states alone, But from the moving lines by which they’re known.

Pratap Bhanu Mehta wrong on Mamta/Stalin's defeat

The Goenkas, like other Marwari Business families from Calcutta, are delighted that the BJP has won by a landslide. West Bengal will now grow rapidly. 

However, in the Goencka controlled Indian Express

P B Mehta writes: BJP’s triumph is a testament to its political energy,

TMC had political energy.  

but it carries a shadow for Indian democracy

Because the party PBM doesn't like won. 

Congress might exult in the fact that all its INDIA bloc rivals

allies. BJP is the rival. There was some talk of Mamta being a rival to Rahul. But she isn't a Hindi speaker. Kejriwal could have been a contender, but he has imploded. Akhilesh may have a big role in the the next general election. He has no objection to promoting Rahul at the National level. Vijay too may be happy with this. But, the fact is, Rahul is already LoP. There was no other national leader before Mamta lost her seat and that remains the case. 

Far from 'exulting', the loss of Bengal is a calamity. It shows that Rahul has been a fucking disaster. 15 years ago, Congress won 42 seats. The BJP got nothing. Now the BJP has a 2/3 majority. Congress has 2 seats. 

have fallen away. But Congress is nowhere near even putting up a minimal resistance and is no match for the BJP’s ruthlessness

Congress won in Kerala against the CPM. Priyanka is an MP from there. 

Indian politics is a story of vanishing exceptionalisms.

i.e. the country is becoming more homogeneous politically speaking.  

The two most entrenched and enduring regional formations have collapsed.

Nonsense! 

Kolkata has fallen;

Adhikari is from a Congress family. He switched to TMC under Mamta after she broke with Congress over their alliance with the Left Front. Then he split from her & he and his family are now with the BJP which had zero seats 15 years ago (when Mamta took over with help from Congress) and which now has a two thirds majority. Mamta has fallen. Kolkata has not. A younger, higher class, dynast has taken over from a crazy biddy & her bunch of goons.  

Chennai has cracked.

Nope. The 73 year old son of a former Chief Minister, who rose as a writer for the movies, will be replaced by a 51 year old film star similar to MGR, NTR & Jayalalitha. In other words, 'reel society' continues to rule over 'real society'.  Interestingly, Vijay's father made a star of Vijaykanth, whose political debut was scarcely spectacular,

Kerala, true to form, has seen anti-incumbency;

Congress & CPM have had a pendulum politics for decades. Lat time around, CPM retained power because of its very good handling of COVID.  

the BJP’s hold over Assam endures.

Rahul mistreated the Congress CM there. He went over to the BJP & has gone from strength to strength.

My point is that nothing has changed. True, Rahul fucked up & Mamta fucked up & even Stalin fucked up by banging on about shitty Dravidian shite nobody gives a fuck about. You don't get votes by pretending the BJP would stop Bengalis eating fish or force Tamils to speak Hindi. You need to show you can curb extortion & boost development. 

These results consolidate the unprecedented national electoral prowess of the BJP

Sarma did well in Assam. Adhikari did well in Bengal. Both started off in Congress. No doubt, the BJP high command helped them but, the fact is, it couldn't have grown with out such senior people getting disgusted with the leaders like Rahul & Mamta & thus coming under the BJP umbrella.  

and the ideological supremacy of Hindutva.

i.e. the need for Hindu consolidation in areas where the Muslim share of the population has been rising along with a more extreme type of Islamist politics.  

It would be churlish to deny the unprecedented power of the Modi-Shah duo in the annals of electoral politics.

It would be foolish to expatiate too much upon it because of the 2024 General Election result. Mamta failed to heed the warning from across the border. Stalin was complacent. He thought his son, who is doing quite well in the film business, would be enough to gain him credibility with the young. But his goons were clearly not as well organized and decent as Vijay's fan-clubs. Stalin himself has lost his seat to his former election agent who had been side-lined & thus who jumped ship, first to the Anna-DMK, and then to Vijay's party. 

In Bengal, a state that

was partitioned on Religious lines. It is where the word 'Hindutva' was coined. The first leader of the BJP was from Bengal.  

prided itself on being as distinctive, the BJP has brought about a near-impossible electoral realignment. Even by the standards of its storied history, the BJP’s victory in Bengal is a remarkable tribute to its unmatched combination of ambition, perseverance, and political ruthlessness.

No. Atal had allied with Mamta. Suvendu Adhikari was her loyal lieutenant. But he was side-lined in favour of her nephew & thus jumped ship. However, demographic change was increasingly important in Assam & Bengal which is why both Himanta Sarma & Adhikari are now more vocal on the Islamic threat. Recent events across the border added to Hindu anxiety & probably played a part in mobilizing the Matua & other Hindu 'refugee' vote. If the local administration is in the hands of Muslims- because they have become the majority- their own citizenship & entitlements may be denied. They would have to move once again or else suffer the very persecution their families had fled from. 

It is, in a literal sense, a triumph of the will.

Mamta & Stalin have plenty of will.  

It has not been stopped by any conventional electoral arithmetic,

Yes it has 

institutional propriety,

beating people? 

identities like language, region or caste, or the embeddedness of a towering figure like Mamata Banerjee.

She has become a hysterical shithead. Still, unlike Sheikh Hasina, she hasn't had to flee the country.  

Defeat in retrospect always seems overdetermined. The fatigue, boredom, the corruption and nepotism, creeping thuggishness, the limits of welfare politics, and regional symbolism created background conditions for a BJP victory.

In Bengal- sure. But that was because Adhikari & Co. split off from a demented biddy & her gang of thieves. 

What Vijay's victory- like the victory of Dissanayake in Sri Lanka or Balendra Shah in Nepal-- shows is that people want good governance, job creation, better education & a crackdown on criminals & drug-dealers.  

But they would not have translated into victory if three things were not in place. After all, there is no evidence that the BJP will address better many of the discontents that fuelled it to power.

In Assam & Bengal, yes there is. They benefit by deporting illegal immigrants or, at the very least, getting them off the electoral roll. That by itself is a reason for Hindus to vote for them.  

The sheer determination of the BJP, the energy of the Modi-Shah duo to persist in hostile terrain, is remarkable.

How is the terrain hostile if senior people like Sarma & Adhikari come to you?  

Then there is the belief that politically salient identities are not given. A new Hindu consciousness can be reconfigured through sheer mobilisation to the point where Hindu-Muslim polarisation nearly displaces all other axes.

Yet that is exactly what happened in 1946. PBM may have heard of a little thing called Partition. True, if the population share of Muslims in Assam or West Bengal had remained stable, then there would be no Hindu-Muslim polarisation there. But Rahul's being shit or Mamta's being shit, would still matter.  

Longstanding grievances are now processed through that template.

No. The relevant template is whether the CM is shit. If the answer is 'fuck yeah!' then dump her sorry ass. If the alternative to the CM is Jungle fucking Raj, vote for the dude by all means.  

And finally, something that will be studied for a while, the use of institutional tactics from the use of the Election Commission, the taming of the Supreme Court, to create a narrative of the cleaning of the electoral process and a violence-free election.

Did you know Biden lost the election to Trump? Also, the Post Office is actually a paedophile ring.  

The actual effects of the SIR process will be studied over time.

It needs to be improved. Also, more Hindus must get expedited citizenship & voting rights in accordance with the law.  

But what was remarkable about it was that the inconvenience and pain it imposed seemed to become a source of the BJP’s strength rather than a cause for punishment.

In the mind of this cretin. It has been suggested that more migrants returned to vote because they were afraid of being struck off the electoral roll. This is supposed to have helped the BJP.  

Whether or not it decisively tilted the electoral outcome, it became handy for mobilisation and a demonstration of its institutional capture.

Also it proves that Modi & Shah are using mind-waves to make me stupid. How come people thought me smart 20 years ago?  

The Assam-Bengal template will go national.

If there is a threat of districts becoming Muslim majority-sure. But the same could be said of the Reform party's prospects in the coming UK elections.  

It seems to fuel support for the BJP rather than resistance.  

PBM is famous for resisting Fascism by soiling himself incessantly.  

The victory of Vijay-led TVK is no less a vanquishing of another exceptionalism.

No. It is a return to the days of MGR & Jayalalitha. True, Rajnikanth & Kamaal Haasan had dipped their toes into politics. But they were like Sivaji Ganesan- i.e. more interested in acting than in politics- whereas Vijay has the youth (he is 51) and fan-base needed to take on the gerontocratic Dravidian parties.  

Anti-incumbency is the norm in Tamil Nadu.

MGR got re-elected but then died. Jayalalitha too seemed to have overcome anti-incumbency before she died. A film star who isn't too corrupt & incompetent can defeat a scriptwriter more particularly if he is male & has lots of highly dedicated fan clubs. 

But still, TVK’s victory is unprecedented in the way in which it breaks the duopoly of the DMK and AIADMK.

DMK has Stalin's son who has made some movies. Who does AIADMK have- star wise? Vijay saw his opening and took it. PBM doesn't know shit about Tamil Nadu. He thinks DMK was 'regionalist' but Vijay- for some reason- is not. He doesn't get that a child actor from the time when MGR was CM will take him for his role model. That's why he has only played one 'negative' role (Priyamvudan). But that was back in 1998 & wasn't actually that negative. A Sivaji or a Kamala Haasan or a Rajnikanth will take a negative role if it allows him to display his acting talent. MGR & NTR did not do so.  

What is remarkable about it is that it breaks the standard assumption that the only way a party can win a regional setting is by playing the regional pride card more strongly

This is mad! Vijay is as Tamil as Stalin. He wants to win in his region & he is steering clear of the BJP which made the mistake of pinning the blame for a stampede in which people died upon him rather than on the administration.  

— there is nothing natural about that regionalism.

Yes there is. Tamil is a different language from Telugu or Malayalam. Also we have problems re. water sharing with our neighbours.  

But it is also a warning that even relatively successful states like Tamil Nadu, trailblazers in industrialisation and welfare politics alike, are in the grip of dissatisfaction and restlessness, in this case powered by young people.

Even in America, young people get angry if they can't get good jobs. PBM thinks this worthy of remark.  

He has done what stars before him, like Vijayakanth,

the 'black MGR' looked like a frog. Vijay is handsome.  

have not been able to do, without much of a party organisation or a social movement.

Vijay has 85,000 fan clubs in Tamil Nadu. These are his fanatical devotees. Now they are getting their reward. A rickshaw-wallah is now MLA for Royapuram.  

Is this form of politics a new canary in the mine?

It is a bat in your belfry.  

The BJP has demonstrated a triumph of the will.

No. It had better people than Congress or TMC in two states. It didn't gain much in Kerala & TN. Indeed, pissing off Vijay was a blunder.  

But its triumphs, while a testament to its furious energy and political imagination, also carry a shadow for Indian democracy. This victory consolidates Amit Shah’s position as a national leader and his lead over rivals by a mile: Total command over the party organisation, and an ability to deliver wins in all kinds of contexts, including a straight two-cornered context.

I suppose PBM is hinting that Dharmendra Pradhan is a Shah loyalist. I think a guy from Orissa has insight into Bihar & Bengal which a Gujarati may not have. Cooperation is important. 'Total command' would be counterproductive. Sunil Bansal seems to have been in charge of 'booth management'. But the true author of Mamta's downfall was Mamta. 

It is also a new experiment for India.

It began in 1923.  

When one party acquires this degree of organisational dominance and ideological ascendancy, all countervailing forces and voices of dissent will gradually fall away.

Not in India. There is factionalism for ideological, sociological & purely personal reasons.  

If Bengal’s history is any guide, the Trinamool will fade away faster than its proportion of vote share suggests,

if Mamta drops dead- maybe. Otherwise it will be like Mayawati's BSP. The fact is, if a guy doesn't get a BJP ticket he shops around to see if some other outfit will give him one.  

and the DMK is not a Dravidian force in the way it was.

Stalin lost his seat. Will his siblings rebel? If not, his son becomes the de facto leader of the opposition. Maybe, like Mulayam Singh, the father will be displaced by the son. 

The Congress might exult in the fact that all its INDIA bloc rivals have fallen away.

Rahul had attacked Mamta. Her people said this was good for the TMC as it would split the anti-incumbency vote. But Mamta might see things differently. She has been fighting the Commies all her life. She may think Congress & the Left conspired to hand victory to the BJP. 

Is Rahul benefitted by the disappearance of Stalin & Mamta? Obviously, taking Kerala from Vijayan is a feather in his cap. But has his stature as a national leader suffered? Much will depend on how DMK & TMC MPs respond. If they follow Rahul, his status is enhanced. But, if Congress supports Vijay in T.N, this becomes awkward. Meanwhile Muslims may be going their own way. Humayun Kabir's 'Babri Majsid' gambit paid off for him personally but have hurt the TMC- his former party. This may be a straw in the wind. Muslims may go their own way. What of the Left? It has lost its last bastion in Kerala.  Rahul would be the natural leader of a Left/Muslim combine but Congress needs to be able to offer Muslims something tangible rather than seek to scare them by the BJP bogeyman. 

But Congress is nowhere near even putting up a minimal resistance

They just took Kerala. They were already hors de combat in Bengal.  

and is no match for the BJP’s ruthlessness.

Nobody is any match for Rahul's stupidity.  

Its lack of leadership, backward-looking ideas of caste and region, and utter listlessness mean that the regional vacuums will be filled by the BJP more than Congress.

Congress was once strong in every region. Then it did stupid shit- e.g. trying to impose Hindi on Tamil Nadu- which caused it to lose out to regional parties.  

Hindutva is now the reigning ideology and identity of the new India.

Because we no longer have a Brahmin dynasty.  

This is not a moment that can be analysed purely in contingent political terms;

Yet, that is all that can be done- unless you aim to talk nonsense.  

it is part of the inner conflict over the idea of India since 1857.

That conflict was resolved in 1947.  

Much of the template of that conversation over India’s identity was

based on the fact that Muslims don't like Kaffirs. This is not to say that Hindus weren't clannish. Still, they can co-exist with Christians. It is only when the percentage of Muslims rises above a certain point that kaffirs have to worry about being stabbed in the street.  

laid in 19th-century Bengal, beginning with Bankim.

All that ended in 1947.  

It is only the myopia of the Left and Centre parties that they assumed that regions are irrevocable natural formations that can be opposed to Hindutva.

Mamta was saying that Bengali Hinduism was different. Modi wanted Bengalis to give up eating fish & meat. For that reason, Modi made a point of visiting a temple in Calcutta which distributes non-veg prasad.  

The idea that “Kali” would be pitted against “Ram” was the kind of cultural nonsense where the Left began to believe its own cultural illiteracy.

It didn't really. But it was easier to talk nonsense than to stop doing stupid, evil, shit.  

For now, Hindutva is producing a culturally hierarchical order, where the claims of identity imperil India as a zone of freedom.

Not for Hindus. Jihadi terrorists- sure. Naxals- definitely. But Hindus are safer. But that was why Partition happened.  

The check on this ideology is not going to be external.

It is going to be internal. You guessed it. It is PBM's fart. 

We are on a wing and a prayer that the consolidation of this form of Hindutva does not result in deeper exclusion and violence, which is typically the denouement of such nationalisms.

i.e. shit which went down soon after Nehru became PM.  

For now, India is in the grip of Hindutva supremacy; it has been sold as a utopian dream. There is no rival. What this supremacy does, or what brittleness it masks, only time will tell.

Modi will make PBM eat his own shit. But PBM is too smart for Modi. He is already eating his own shit. Rahul should do likewise.  

Monday, 4 May 2026

Akerlof's crazy Caste paper

It is now more than fifty years since Akerlof's famous paper- 

THE ECONOMICS OF CASTE AND OF THE RAT RACE AND OTHER WOEFUL TALES*

There is a standard model of economic behavior, the Arrow Debreu general equilibrium model of perfect competition.

It was nonsense. For a market to exist, market-makers must exist. AD assumes they don't. Prices are set by magic so all markets clear. Thus, suppose I lost my sweater yesterday on my day-trip to Paris and Monsieur Dubois found it, I can buy it from him for 100 Euros- the price he is willing to accept because my sweater doesn't fit him, and which I am prepared to pay because it has sentimental value for me.  The fact that I don't know Dubois & he doesn't know me does not matter. The price vector contains all the information in the universe. There is no Knightian uncertainty- i.e. Evolution is a false theory. We live in an Occasionalist universe. 

While this model may not be entirely adequate as a description of economic reality, it is most useful as a standard of comparison. For in equilibrium in this model, subject to the careful qualifications of Pareto optimality, peoples' lives are as pleasurable as they possibly can be, given their tastes and productive capabilities.

Thus Dubois can get 100 Euros for my sweater because, by magic, the market wafts it away from him to me while simultaneously taking 100 Euros out of my wallet and passing it to Dubois.  

Consequently, to understand why peoples' lives are not as pleasurable as they might be (in the Pareto sense), it is necessary only to know why the real world fails to correspond to the Arrow-Debreu utopia.

It's because there is no market unless some people create it. But markets don't have magical powers and cost money to run. There are 'hedging' & income effects such that there is no unique equilibrium. Indeed, speaking generally, markets don't clear. 


In the real world, contrary to the assumptions of Arrow and Debreu, information is neither complete nor costless.

But arbitrageurs have an incentive to acquire more information & make it cheaper to access.  

On the contrary, given the cost of information and the need for it, people typically make predictions about the behavior of the economy and the behavior of individuals based upon

the opinion of those with greater knowledge or a better track record of making predictions 

a limited number of easily observable characteristics.

Nonsense! If the decision matters, we ask a smart dude. He can see beyond what is 'easily observable'.  

We say that such a prediction is based upon an indicator; an econometrician would call it a prediction using the method of instrumental variables.

Only if causation is impossible to establish and thus correlation is all we have to go on.  

This paper shows the distortions caused to examples of the A-D (Arrow-Debreu) model by the introduction of indicators.

You can't distort that which is incompossible with our universe.  


 Other approaches to the difficulties encountered by the A-D model in explaining labor markets are given by the "new" labor economics. 

Which was inferior to knowledge possessed by people who actually did the labouring.  

There are two types of examples of the use of indicators in the models that follow. One sort of indicator owes its existence to the potentially useful economic information provided. In the example of sharecropping the output produced is used as indicator; it serves the useful function of differentiating between farmers who have expended different levels of effort in tilling the crop.

No. A smart guy may put in less effort & get a bigger crop than a stupid donkey.  

In the example of work conditions the speed of the assembly line predicts the ability of workers on that assembly line,

Not if quality deteriorates.  

and therefore differentiates workers of different ability.

That would have already been done before they were put on the assembly line.  

In contrast, in the following two examples the indicators owe their existence purely to social convention. In the example of statistical discrimination, under conditions described, all persons of the same race are predicted to have equal ability.

Nobody has ever made any such assumption. We may say 'African Americans are better at basket ball than Asian Americans'. We don't say any random black dude is equal to Michael Jordan.  

In the example of caste, the behavior of one member of society toward another is predicted by their respective caste statuses.

Not in India. Money & power are what matter.  

In this second type of example, introduction of indicators into the A-D model brings with it a second previously missing aspect of reality, the panoply of cultural characteristics used by anthropologists and sociologists to describe a society.

i.e. stupid shite.  

For, by definition, culture consists of "regularities in the behavior, internal and external, of the members of a society, excluding those regularities which are purely hereditary."

Regularities change very quickly if there's money on the table.  

Since culture concerns regularities in behavior and since subcultural membership is easy to observe, members of society, as well as visiting anthropologists and sociologists, can predict individual behavior from subcultural membership.

They really can't. That's why Hitler was defeated. Even if Germans were more 'noble' than Americans, Americans had way more money. Japan may not, as he said, have been defeated for 3000 years, but Uncle Sam made them whimper & plead for mercy quickly enough.  

The indicators by which men judge each other may warp their values and distort their goals.

Doing stupid shit has this effect. Being stupid isn't a handicap provided you imitate what smart peeps are doing.  

The anthropologists give accounts such as those of the Kwakiutl Indians, among whom the chief at feast-time who burned the greatest number of blankets, as the mark of the most conspicuous consumption, received the greatest honor.

There was a political & religious angle to this. 'Potlatch' was banned.  



II. SHARECROPPING

The first example of indicators deals with the simplest phenomenon. Several economists have asked why sharecropping is a common form of land system.

Only where there is only limited monetization.  

After all, since the sharecropper is much poorer than the landlord and much less liquid as well (not owning land that can be mortgaged), it would be more natural for the landlord rather than the tenant to bear the risk of crop failure.

He does. He pays the land tax.  

This would be accomplished if the landlord paid the tenant a wage and sold the crops (perhaps even selling some of it back to the tenant).

That's not a tenant. That is wage labour with accommodation provided- e.g. on a Tea plantation.  

There is also evidence that fixed wage payments are more "natural" than sharecropping.

In a monetized economy- sure.  

A recent study of sharecropping in the United States South concludes that immediately following the Civil War "the wage payment system was, from all indications universally
attempted."

Conditions were pretty fucking unnatural back then.  

Travelers' accounts seem to show that at the end of the Civil War sharecropping was viewed as an "experiment."

Not beating and raping slaves was the experiment imposed on the South.  


There is, however, a very simple reason for a preference for sharecropping over a wage-payment system. There are two components to the sharecropper's input: the time he puts in and the effort expended. While the first is easy to observe, and can be paid a fixed wage, the second cannot be observed without careful supervision of the labor.

Fuck off! Just ask around & you will be able to identify the slacker quickly enough.  


Suppose that the input of the sharecropper depends upon his time at work and his effort; suppose further that his effort can be measured and called e. With a wage system the sharecropper should receive an income w dependent on e and t:

w = w(e, t).

Without supervision the landlord cannot determine the effort put in;

Unless he asks around. Also, when it comes to agriculture, it is easy to determine which farmer is hard-working because the weeding and drainage etc. will be better. Just ride around your estate a couple of times a year. Stand a round of drinks & you will hear all the gossip- X is a hard worker but as stupid as shit. Y is smart. He puts in fewer hours but gets a better yield.  

and the wage paid to the individual worker will depend on

transfer earnings. How much can he earn in his next best job?  

the average effort of the average worker, e: thus

w = w(j, t).

This leaves no incentive to the worker for any effort beyond the minimum necessary to be paid for his time.

If the guy looks like a slacker, warn him he will get the sack. But it is enough to say 'you are lucky I don't listen to gossip. I'm sure you are working as hard as ever. Still, this is not a good time to lose your job.'  

If he dislikes effort, he will minimize it.

He will end up a beggar.  

In contrast, in sharecropping, the farmer is paid for the effort that he puts in as well as for his time;

his payment is his share of the crop. The question is whether he can get the best price for it.  

but this effort and time are estimated imperfectly from another characteristic-the output produced.

Nobody gives a shit about effort & time. How much of the crop you get and the price it sells for are all that matters.  

The equilibrium is distorted by this procedure, since the risk-averse farmer remains unprotected from the natural randomness inherent in agriculture.

He is better protected than the village artisan or landless labourer. The Bengal famine showed this. Akerloff was writing about something he had zero knowledge of. Also what he was saying was utterly stupid. No wonder he got a Nobel Prize. 

The basic stylized facts of this model conform with the conditions of sharecropping. In traditional agriculture the hard-working farmer usually receives yields that are considerably greater than the yields of the average farmer. A Punjabi peasant, who prided himself on yields greater than those of his neighbors, once listed for me "the seven
 things which a good farmer does, which a poor farmer does not do."

It is significant that many of these seven things involve arduous work and much patience; many are also difficult to observe.

They were so easy to observe that you could see from an aeroplane that East Punjabi farmers (mainly Sikhs) were more hardworking than West Punjabi farmers (mainly Muslim) On one side of the border the land was much more green.  

A similar story has been told by John Mellor in his study of farms in a village of Uttar Pradesh.

Many parts of UP have an indigenous class of crop estimators. These are guys who can walk through an orchard & tell you how many tons of fruit will be produced.  

Hard work generated significantly higher yields even with the use of only traditional farming methods.

Traditional methods are fucking hard work.  

The division of crops between those grown on a wage-payment system and those grown on shares is also consistent with our explanation.

No. It is consistent with the property regime which in turn depends on the land revenue system. But equally important is coercive power.  Why was some land 'self-cultivated' with wage labour while other land was given to tenants who gave it to sub-tenants? The big landlord needed muscle men but also wanted allies of particular castes/ creeds. 

Where supervision is needed for reasons other than determination of effort, the model predicts that wages rather than shares will be paid. In India, for example, as an excellent rule of thumb, capital-intensive plantation crops are grown on a wage-payment system.'

No. Either workers who were brought in from outside- even if this happened several generations ago- and housed & fed & looked after by the employer or they sold their produce or handed over a fluctuation portion in lieu of rent. What mattered was the property regime which in turn was determined by fiscal convenience to the Government.  

Speaking generally, a 'law of increasing functional information' operates such that useful information improves in quality and falls in cost. This happens because it pays to specialize in gathering & providing it. Alternatively, it happens because the alternative is death or demographic replacement. 

Akerloff next turns to

 indicators of social origin (which) may lead the economy into a low-level equilibrium trap.

in which case it is at risk of invasion or insurrection.  


We begin with Arrow's model' of statistical discrimination given in  "Models of Job Discrimination," and "Some Mathematical Models of Race in the Labor Market'. 

 

The model here is different in important detail from the original by Arrow, who does not consider the two equivalent. I am sure that he would agree that, however the mathematics differ, the economic spirit of the two models is the same.

 In this example, under some circumstances, employers use the average quality of a given race to predict the quality of individuals of that race.

If you are being judged on the basis of race, chances are you are below average.  

It is easy to see that if such an indicator is used, it will destroy all incentive for self-improvement for that race,

Nonsense! It incentivises occupational, geographic & social mobility. In particular, a discriminated against group is likely to chose entrepreneurship & self-employment to a greater degree. 

since all individuals of the race are judged the same and therefore paid the same wage irrespective of individual merit. In this way prejudice may produce a lower level equilibrium trap: if a race is deemed by prejudice to be unqualified, no incentive is given to become qualified, and the prophecy is self-fulfilling.

Akerlof's mother was German Jewish- i.e. of higher class & education than most Polish or Russian Jewish immigrants. Thus he may had no personal knowledge of the manner in which poor Yiddish speaking Americans clawed their way up. The second generation went to shitty inner city schools and were kept out of Ivy League by the 'Quota'. That's the reason they worked so hard & took such great risks to rise & rise. 

The Model

In this model there are just two types of jobs, one requiring qualified labor and the other requiring either qualified or unqualified labor.

If you are qualified in some manner it is worth your while to spend a little money on getting some sort of accreditation. That is how Professional Associations come about.  

It is costly to test workers individually to see whether or not they are qualified.

Which is why they bear the cost of accreditation & pocket the reward.  

The change in proportion of qualified workers depends upon the incentives for self-improvement, which are differences in wages for qualified and unqualified workers of that race.

I suppose Arrow means that a black accountant had less incentive to pass the relevant exams to become a CPA because he still wouldn't get White clients. But the thing can work the other way. People might say- this 'boy' must be a genius! Moreover, he can't charge as much as a White dude. We are getting a bargain!'  


V. CASTE AND GROUP ORGANIZATIONS

...It may appear that the tastes of persons in discriminating societies are so overwhelmingly biased in favor of discrimination that, relatively, the positive or negative effects of economic incentive are of only minor moment. But this ignores the broad historical perspective, which attempts to explain the stability (or disappearance) of institutions over a long period of time. For there are a fair number of cases where opportunities have arisen for deviants to break the caste code and make economic profits, with consequent rise in their social position and erosion of the caste taboos.

Class status can depend on what 'mimetic target' a Society chooses. 

Consider three diverse examples of this phenomenon. In Japan

when Confucian China was the model, Merchants were downranked. Once the Brits defeated the Chinese, the 'nation of shopkeepers' became the mimetic model.  

as merchants have become more economically successful,

because the military government had been overthrown & markets were displacing bureaucrats drawn from the Samurai class 

so too have the taboos against trade and manufacture been reduced.

Because, in England, the Prince of Wales was happy to stay in the Country mansions of his grocer- as the Kaiser disapprovingly remarked.  

Even in caste-bound India caste status rises with the economic success of the caste,

& vice versa 

although, typically, newly successful castes also adjust their social customs, at least partially, to reflect their higher status.

This happens everywhere. The American meat-packer soon hired an English butler.  

The best example of economic success reducing taboos is, most probably, the elimination of the sanctions against collection of interest. The usurer of the Middle Ages

was the banker of the Middle Ages. Lombard street is named for Lombard money-lenders who arrived in London in the 12th century.  

has turned into the banker of today.

Goldsmiths turned into bankers because they had strong-rooms. Fractional reserve banking arises from them.  

This section introduces a new class of models in which, as in Arrow's statistical-discrimination equilibrium trap, those who break caste customs suffer economically.

They may face social ostracism. It is said that Jinnah's ancestors were ostracized after they took to dealing in fish.  

This class of models depends upon an important facet of caste societies missing in previous models of discrimination. In previous models current transactions (so long as they are legal) do not result in changed relations with uninvolved parties in subsequent transactions. For example, if farmer X makes a contract for sale of wheat to speculator Y, his subsequent dealings with speculator Z will be unaffected.

i.e. in this model, no one has market-power. Everybody is a price-taker.  

On the contrary, in a caste society any transaction that breaks the caste taboos changes the subsequent behavior of uninvolved parties toward the caste-breakers.

in other words, there is market power.  

To take an extreme example, consider what would happen if a Brahman should knowingly hire an outcaste cook: the Brahman would be outcasted,

No. He would merely have to spend a bit of money on 'prayaschitham' (expiation). Plenty of Brahmins hired Muslim or Christian cooks who could prepare Mughalai or European food. True, they generally maintained a separate kitchen.  

and the cook would find subsequent employment almost impossible to obtain.

Only if he was a shitty cook. Why the fuck would a non-Brahmin care if the cook had worked for a Brahmin? If anything, the thing would be a recommendation.  

True, a particular sub-caste, or ethnic group, could operate like a Trade Union. If even one non-member is employed, the entire sub-caste boycotts the employer. But actual Trade Unions also exist. 

The possible intervention of third parties in a transaction allows for a richer class of indicators than that given by Arrow's statistical discrimination- typically, the use of indicators in caste societies being less narrowly technological.

This is foolish. What a guy did in medieval societies was fucking obvious from the way he was dressed & the tools he carried.  

Generally, in a caste society if a member of caste A relates to a member of caste B in a given way, he can predict from knowledge of the relations between caste A and caste B how members of all castes will relate to him in future transactions.

Very true. If a Brahmin fucks you in the ass, all Brahmins will fuck you in the ass even if they are straight.  

Such predictions can lead to an equilibrium in which

if one Brahmin is gay, every Brahmin is gay.  

all expectations are met and economic incentives favor obedience to the caste code-

There is no such code. Brahmins are priests by caste but most don't practice priest-craft  

even in the extreme case where tastes are totally neutral regarding the observance of caste customs.

Because the model is shit.  


The following three conditions describe marriage customs in

India.

1. Society is divided into mutually exclusive groups (called castes).

No. There are castes whose ritual status changes at different times of the day (afternoon Pariahs) or depending on their geographical location or occupation.  

2. A code of behavior dictates how members of these castes should behave.

That depends on religion not caste.  

Regarding marriage there are complicated rules as to who may marry whom, payment of the dowry, the timing and performance of the marriage rites, etc.

The Brits thought so. Brahmins knew otherwise. One reason they got behind Democracy was because they wanted elected legislatures to get rid of British era laws- e.g. the one by which Indira's marriage to Feroze (or her Aunt's to a Jain) were per se illegal.  

The caste rules dictate not only the code ofbehavior, but also the punishment for infractions: violators will beoutcasted; furthermore, those who fail to treat outcastes as dictated by caste code will themselves be outcasted.

Unless they pay a bit of money to do prayarschitham or beat the shit out of a couple of the more vocal of their critics.  

3. Caste members predict that those who do not follow the caste code will be made outcastes and will receive the treatment of the average outcaste.

No. They get that the dude will move to a different village or stay in the same village but join a different sect.  

An outcaste in India is permitted to hold only scavenging (or other polluting) jobs.

What was permitted was determined by the King, Governor, of other official. True, there might be a village level boycott but the solution was to move to a different village. Akerlof simply didn't understand how the real world works. 

He is not allowed to eat with caste members, to touch them, or to touch their food, which in the case of someone outcasted includes his own parents and siblings.

But it is cheap & easy to do the necessary 'prayaschitham' to restore ritual purity.  

Of course, his own children will be outcastes and will suffer the same prohibitions.

Unless he moves or changes religion or gets rich.  

Why should these three conditions describing marriage customs in India be of interest to the economist?

They weren't of interest to Indian economists because they simply weren't true.  

First, note that those who fail to follow, or even to enforce the caste customs do not gain the profits of the successful arbitrageur but instead suffer the stigma of the outcaste.

This is just Trade Unionism or a cartelism. It exists everywhere.  

If the punishment of becoming an outcaste

like Spinoza? Conversion overcame the underlying problem.  

is predicted to be sufficiently severe, the system of caste is held in equilibrium irrespective of individual tastes, by economic incentives; the predictions of the caste system become a self-fulfilling prophecy.

Caste is a good enough solution to the stable marriage problem for large enough jatis.  It probably does reinforce high trust networks. 


Formal Model of Caste Equilibrium

This subsection presents a formal model of caste equilibrium.

The correct solution concept is 'evolutionarily stable strategy' which was propounded in 1972/73 by Maynard Smith & George Price.  

Caste equilibrium is defined as a state of the economy in which caste customs are obeyed, yet no single individual, by behaving differently, can make himself better off.

This can only arise if there is no Knightian Uncertainty & thus the caste Social Contract is complete. Otherwise, there will always be novel situations where there is doubt as to how to proceed. There will be reactionaries & progressives. If one lot do better over time, they win.  

The first concern is, of course, to describe this equilibrium. However, since there are also coalitions of individuals who by acting together can make themselves better off than in equilibrium, it is also of interest to know the relative ease or difficulty of forming such a coalition.

Castes are coalitions.  There is a 'natural' way of constructing super-caste groups- e.g. 'left hand' & 'right hand' castes. 

For this purpose we also look at the size and nature of the smallest equilibrium-breaking coalition.

Anyone can break it. Otherwise, how could there be 'outcastes'?  

Four sets of assumptions describe the economy; those describing technology, market structures, tastes, and the social system. The assumptions describing the social system are laid out in parallel with the earlier description of marriage in India.

Arranged marriage. There were other sorts. It's just that arranged marriages have been more successful demographically. This probably has to do with 'risk pooling'.  

In general this model is extremely simple, subject to one complication. By its very nature the caste system involves trade and the division of labor. If outcastes could set up their own economy independent of caste members, the caste system would fall apart.

No. If 'broken men' move somewhere else, clear land & begin cultivating it, sooner or later they will merge in caste with which ever group of villages they habitually exchange brides.  

In Akerlof's crazy model 

 By birth there are just two castes divided into a dominant caste D and a nondominant caste N. Labor of both castes D and N can be outcasted. Outcastes, if any, form a third group.

S3. Persons predict that breakers of the caste code will be outcasted and receive the wages bid for outcaste labor.

The model assumes that no new products which are substitutes for what obtains can be produced. Thus he is describing a stagnant economy immune to invasion or an internal political power shift as demographics change.  


Comments on Caste Equilibrium

1. The equilibrium described has two types of distortions due to caste structure. The equilibrium is not Pareto optimal, since in a Pareto-optimal equilibrium N-workers would work in skilled jobs, for which they are fully qualified.

We could say that's a Hicks-Kaldor improvement but it isn't a Pareto improvement because the wages or status of the dominant group falls.  

Also, income distribution is skewed along caste lines, since in the absence of caste all workers would receive the same wage.

i.e. caste is a type of wage discrimination.  

 

2. There is another equilibrium, also with fulfilled expectations, in which all workers work in skilled jobs and receive a wage 61sk. The price of all goods is 1.

3. The smallest equilibrium-breaking coalition is

one. Anyone who can subsist & reproduce while defying the caste code breaks the equilibrium. Consider abortion. There was a time when a Doctor could be struck off for performing an abortion. This didn't mean medical abortions weren't available. They were just very expensive. 

the smallest group that can set themselves up as a separate subsector and be as well off as in equilibrium while trading with caste members on the terms of trade granted to outcastes.

This is like price discrimination by market segmentation. How are you to prevent 'leakages'- i.e. buying in the cheaper market & re-selling on the more expensive one?  More generally, cartels face the problem of 'cheating'. 


In situations where this coalition must be large, where trade with the caste economy is necessary, or where the cost of forming a coalition is high, the threat to equilibrium of such a coalition is small. These principles are illustrated in the examples that follow.

Three Examples of Caste Equilibrium

aren't about caste at all. Akerlof is saying 'caste is like something else which exists in non-caste societies'. Similarly, I could write about my life as James Bond by pretending Bond was actually a Cost & Management Accountant.  

Example 1. Racial Discrimination. Racial discrimination is implicit in the model, the major difference between the caste model and those of Becker, Welch, and Arrow being in the assumption that persons use race to predict how everyone else will react to hiring persons of different races in different jobs. Their predictions result in a lower level equilibrium trap in which all predictions are met.

You discriminate in favour of your race because of the Price equation- i.e. kin selective altruism. The notion is that your own people will stand with you if the going gets rough.  


Example 2. Government-Business Groups. Allegedly many government-business groups, including the military-industrial state, governmental regulator-regulatee nexuses and political machines are held together by a caste-outcaste structure similar to that of our
model.

Which is like saying 'many secret agents- like James Bond- operate in the manner of a Cost & Management Accountant. '


Example 3. Professional Groups.

which are occupational in the (at least notional) manner of caste groupings.  


The public often delegates authority to professional organizations to police their own members-the most prominent of these being bar and medical associations. In turn, the members are expected to maintain professional conduct. Since cooperation with others in the profession is a necessary part of the job, the same outcasting mechanism used by caste, races, and government-business cliques enforces a professional unanimity that gives the profession more than its fair share of economic power.

What you are getting is 'interchangeability' and a grading hierarchy. This was a feature of the Shreni (guild) not the jati (caste). 


VI. CONCLUSIONS

Our four woeful tales have described the ways in which the use of indicators can distort equilibrium.

There is no equilibrium unless there is a steady state. But, since steady states don't arise out of some magical Arrow-Debreu price vector, Akerlof's woefully stupid tales haven't described shit.  

In so doing, we have also answered two challenges to economic theory.

The standard individualistic theories of income distribution and resource allocation are notable by the absence of variables describing social structure, except insofar as these variables affect exogenously given tastes or the initial allocation bundles.

Which captures everything relevant. Stuff about you which is determined at birth is part of your fucking allocation bundle. If you choose to go along with how things have always been- that is your fucking preference. 

The absence of these variables poses the first challenge: to construct an individualistic theory in which income distribution and resource allocation reflect, to some extent, the divisions of society as described by the sociologists.

Just cram them into 'allocation bundle' or 'preferences'.  


The most common indicators are based upon the standard subcultural divisions of a society. And, as a result, the use of indicators makes equilibrium income distribution and resource allocation dependent on these divisions; and the first challenge is answered.

By something sillier yet.  


The second challenge to economic theory concerns the relation between marginalism and social custom.

They change because of what is happening at the margin- i.e. entry & exit. 

As long as most persons have positive utility for obeying social customs, and as long as activities are pursued up to the point where marginal costs equal marginal benefits,

but these change if market power exists. Marginal Cost & Marginal Revenue rise if making an extra unit lowers price or raises input cost. Monopolies & Monopsonies, ceteris paribus, restrict output & cause a deadweight loss.  

there will be rewards to breaking social customs insofar as they fail to promote economic efficiency.

Sure. At the margin, members of a cartel tend to cheat.  

While such rewards occur sometimes, and they may also be spectacular, I would tend to believe that usually the greatest returns go to those who do not break social customs. Archetypically, they join the proper fraternity, work for the proper law firm, and may even marry the boss's daughter.

But then they start losing valuable new types of business- e.g. Mergers & Acquisitions- to Jewish law-firms founded by guys who went to City U.  

In a segregationist society, such persons discriminate;

because they don't want to be tarred & feathered or have the KKK burning crosses on their lawn.  

in a caste society they follow the caste code.

Unless they are sufficiently respected that they gain even more by reforming it.  

While not denying the possible returns to the arbitrageur and social deviant, the models of statistical discrimination and caste explain why economic rewards may favor those who follow prevailing social custom; and in so doing, they give economic reasons why such
social customs may endure.

Speaking generally, fear of being killed trumps greed for a bit more money. Society has coercive powers which even economists need to recognise.