My View on "Some Surprise Contenders for RBI Governor"

This is with ref to a news item that Raghuram Rajan has not got sufficient insight of Govt functioning and so he has to wait and Arvind Mayaram , Secy (Economic Affairs) becomes eligible for the post of GUV. Nothing can be more flimsy than this.Frivolous arguments by certain persons to retain IAS monopoly will not do.The entire world is watching us and we should select the BEST MAN for the job of GUV. When the Bank of England got a Canadian for the top job of GUV, did the Govt object that he wa not familiar with the functioning of complex decision making process in Govt.When Ben Bernanke was appointed GUV of FED RESERVE when he was a tenure Professor in Princeton University, did anybody object to his lack of knowledge of Govt functioning? When Pt Nehru became P.M. of India, did anybody say that he lacked ministerial experience? Will any body point to lack of experience on the part of Rahul Gandhi if and when he becomes P.M.Then why raise objections on the appointment of Raghuram Rajan as GUV? Half baked IAS do not have monopoly on expertise. We have better experts aplenty in RBI. Why nobody takes their name for the post of GUV. 

- Sitendra Kumar

Last year’s developments which saw easing out of a Deputy Governor (Subir Gokarn) for no fault of his and compulsions to retain another Deputy Governor for another year calls for a review of the selection and placement procedure at that level and at the level of Governor. GOI generally handles successions in RBI with some deft and care. These and shuttling of Rakesh Mohan between North Block and Mint Road can be considered ‘exceptions’ in the graceful handling of succession plans in RBI, if one looks at the meddling with placements(or withholding appointments) at certain other key positions in government and public sector in India. It would be a wise option to allow Governor Dr Subbarao initially to continue for another year and leave it to the post-General Election team in New Delhi to decide on the next Governor. This will also give some time for formulating and implementing a succession plan for the top job in the central bank which should factor in the need to infuse professionalism and efficiency as also a graceful approach to changes in incumbency at the levels of Governor and Deputy Governors. As the situation in India is not comparable to that in developed countries, there is substance in the argument that Rajan may need a short period of ‘grooming’ before taking up the position as RBI Governor. 

- M.G.Warrier