Valuing Nature: Technocratic Governance vs Democratic Deliberation Deepak Malghan Even a beginner in economics, who does not have to study the broad contours of the history of economic thought these days, however, recognises the spectacular achievement of neoclassical economics in resolving the so-called diamond-water paradox. Why does diamond, which unlike water is not critical for survival, command a higher price? Classical economists like Adam Smith, who believed in a labour theory of value, tried to resolve this paradox by distinguishing between