Gift and behavioural economics

FE Team | Published: July 12, 2025 20:43:08

In behavioural economics, the symbolic and social value of a gift often outweighs its monetary worth. A gift is not merely a material exchange, it serves to strengthen emotional and social bonds.
Recently, the Government of Bangladesh sent 300 kg of Hari Bhanga mangoes to the Government of Tripura without any conditions or expectations. This simple yet meaningful gesture carries more weight than a financial transaction.
It creates a sense of goodwill and psychological obligation on the part of Tripura's Chief Minister and his administration. In future discussions, whether related to trade, water-sharing, or border cooperation, Tripura is now more likely to respond with empathy and openness.
This is a classic example of a "social contract" being established through gifting, an unspoken agreement rooted in the natural human tendency to reciprocate kindness. By choosing a culturally significant and high-quality gift, Bangladesh has conveyed respect, friendship, and diplomatic warmth in a way that resonates emotionally.
Importantly, the mangoes were framed as a symbol of goodwill and friendship, not a transactional offer. This positive framing ensures that the gesture is seen as a form of relationship-building, rather than manipulation.
From a behavioural economics perspective, this was a smart and effective social investment. The pleasant experience of receiving the mangoes is likely to leave a lasting impression on Tripura's leadership, potentially shaping a more favorable and cooperative stance in future engagements.
Ultimately, this event illustrates that diplomacy is not solely conducted through formal agreements or financial leverage. Subtle, thoughtful gestures rooted in human psychology can play a powerful role in shaping international relationships.
Kash Ahsan
Duaripara, Mirpur, Dhaka