There are many reports on who might succeed Dr Subbarao. Some reports are inspired and some are by independent observers giving their views as to who in their opinion are most suitable for the post. In some of the reports, it is mentioned that Government might even be thinking of giving another short extension,say, for an year, to Dr Subba Rao. I remember to have read some reports, at the time of extension of his tenure for a period of 2 years, that Dr Subbarao had made known to his masters in the Government that he would not be interested in any further extension. If his continuance in the post is ruled out on this score, it would be a good idea, as I had mentioned earlier in this Newsletter, to appoint Dr. Raghuram Rajan to the post for some fresh thinking. Economists and bureaucrats groomed in the Indian scenario would find it difficult to escape from the groove to which they are fixed. Anyone who has read Rajan's book "Saving Capitalism from Capitalists" would find ample evidence of his brilliance and we need not, therefore, have any doubt that he would excel in his job. He had differed from Alan Greenspan and had anticipated the adverse fall out of Greenspan's policies on the American economy. As he is young, he should be given a full tenure of 5 years if not a tenure of 6 years as it is in the case of the Chairman, Federal Reserve Board.
I know that I am a small fry and that my views may not count and be heard in any quarter. Nevertheless, one derives some satisfaction in expressing one's views.
- A. Chandramouliswaran
2 comments:
Shri Chandramouliswaran, you are not a small fry and you wee never so being in RBSC as Faculty Member and later as CGM/ED in the bank.Unfortunately in India, the politicians count aided and abetted by the bureaucrats to further their interests and hold monopoly over decision making without commensurate accountability.Recent decisions to hike FDI is a case in the point. A vague and ill defined decision on FDI hike and no improvement in decision making. Any offer of FDI will have to be decided by the Govt and there endless queries, squabbles and delay will put off the investors.Multiple agencies who approve the FDI project e.g.Ministries of Environment,Forests, Home, Trade,Industrial Development, Finance, Telecommunications etc; will vie with one another to put obstacles and raise objections. Can't there be a single window scheme to clear the projects, ensure inflow of Dollars, exchange stability, reduction in Current Account Deficit.Why the RBI GUV harps only on increase in Repo rates to contain liquidity and hence inflation when not even a whiff of measure has been taken by Govt to reduce Fiscal Deficit.When apparel is in open category, where is the need of Ministry of Textiles.Is there any need of Ministries of Coal, Steel etc; when these sectors stand delicensed and FDI under automatic route is there? When we have RBI,IRDA etc, where is the need of Deptt of Financial Services in Ministry of Finance?With recent hike in interest rates,why Public Sector banks can't increase interest rates on advances for proper Asset Liability Management. 100% FDI in state of art Defence industries. What a joke? Who will determine what state of art means on what criterion? Any body who pays kickback.
RBI GUV must act like Ben Bernanke of FDR or like head of German Central Bank and totally free to pursue monetary policy objectives. Choice is clear. Shri Raghuraj Raman ought to be RBI GUV.
I have found VITALINFO as one space where we can express our views "WITHOUT RESERVE". I have found AC's views balanced and mature and we look forward to intuitive views backed by years of experience and learning which should get factored in in the thought process of people who are presently in charge of policy formulation. In fact, I have ascertained from Mangesh that VITALINFO would welcome such sharing of thoughts.
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