Dismantling subtle racism by reshaping incentives

By Lipi Gandhi     3/4/25 10:53pm

Editor’s Note: This is a guest opinion that has been submitted by a member of the Rice community. The views expressed in this opinion are those of the author and do not necessarily represent or reflect the views of the Thresher or its editorial board. All guest opinions are fact-checked to the best of our ability and edited for clarity and conciseness by Thresher editors. 

Before moving to the U.S., I had been cautioned about racism, but I reassured myself: It’s a new generation; people are more conscious. For the most part, I wasn’t wrong. But what no one warned me about was the racism that lingers in the air, unspoken yet deeply felt. It exists in the assumptions people hold, in the way they speak with confidence about other cultures while knowing so little.

This quiet bias isn’t just a reflection of history, it persists because of misaligned incentives. People and institutions have little reason to question deeply ingrained assumptions because doing so offers them no immediate benefit. 

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In economics, an imbalance of power and knowledge is called information asymmetry. In markets, this leads to exploitation. In society, it shapes perceptions and reinforces hierarchies, creating inefficiencies and inequality.

Subtle racism operates the same way. Through media, academia and history books, Western societies have positioned themselves as the default narrators of reality. The result? A deeply ingrained, one-sided perspective where certain cultures are framed as advanced, rational and competent, while others remain exotic, chaotic or in need of saving.

An acquaintance once told me, “Your English is so good!” I explained that English is widely spoken in India and embedded in our education system. Instead of absorbing that information, he responded, “Oh, but you must have worked in an English-speaking firm then?” His assumption reflected how incentives shape knowledge. In his world, India was framed as an other, and challenging that view required effort with no immediate reward.

This selective framing isn’t limited to casual conversations, it extends into academic discourse. In a recent economics lecture on global financial markets, we analyzed why some economies thrive while others struggle. But the historical role of colonialism? The destruction of self-sufficient economies through imposed monetary policies? The informal economies that sustain millions? None of these were part of the discussion. 

The message was clear: success was defined in terms of Western economic models, while non-Western perspectives were omitted, simply because institutions have no incentive to include them.

The worst part? Subtle racism is invisible to those who benefit from it. Dismantling bias begins with recognizing that “neutral” standards often reflect historical power dynamics. Without this awareness, systemic racism quietly disadvantages people of color across many aspects of life, including health. Those facing bias must explain and educate, while those with authority have little incentive to change the system.

Incentives must be reshaped. In a globalized world, institutions that fail to integrate cultural understanding risk losing talent and innovation. Making diversity a shared responsibility transforms it from an ethical duty into a practical advantage, equipping students to challenge the status quo and think critically.

So how do we bridge this gap in incentives? Just as international students are expected to adapt to the “American way,” cultural education should be a standard requirement for all students and faculty. Similar to how first-year undergraduates must complete a Critical Dialogues on Diversity course, the Graduate Student Association should recommend implementation of diversity workshops for graduate courses. Moreover, these programs should be regularly updated to reflect evolving social and economic dynamics, ensuring that discussions remain relevant in an ever-changing world.  

As business students, I believe we can also create incentives by petitioning the administration for an evaluation system where courses are assessed not only for academic rigor but also for inclusivity in discussions, representation in case studies and acknowledgement of global perspectives. By forming student-led groups within the Business School that collaborate with faculty and administration, we can address biases in curriculum, classroom discussions and corporate partnerships. Engaging alumni in open conversations about these issues will further spread this mindset into the corporate world, ensuring that Rice students continue to champion diversity beyond campus. 

When societal needs converge with aligned incentives, the potential for success is virtually limitless. At Jones Graduate School of Business, we call this strategic thinking, and it is on us, the students, to become the catalysts for transforming challenges into opportunities and redefining progress, intelligence and legitimacy.

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