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Raghuram Rajan Advices Govt To Learn Reform Lessons From Narasimha Rao & Manmohan Singh

HARSH RANJAN | 0
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| January 22 , 2019 , 18:12 IST

Former RBI governor Raghuram Rajan said on Tuesday that the governments should learn how to implement reforms from the Narasimha Rao and Dr Manmohan Singh.

Speaking to media, Rajan said political leadership has to build consensus to implement reforms. He also said that some of this can be learned how the former Congress Prime Minister and Finance Minister worked behind the scenes to make things work.

Rajan said that "an overly-centralised structure of government may offer leadership but may not offer the ability to implement and one of the lacunae we have seen over the last few years is that the policy plans at the top don't get translated into implementation."

"My sense is the pressure from people now for change is increasing and any government will have to respond to that. In this election as a citizen of India, there are three big issues jobs, how tolerant we are towards different views of minorities and concern about how to protect our institutions. Whether it is Supreme Court, the election commission, or RBI," he added.

He also talked about a host of issues related to the Indian economy, Lok Sabha polls and farm distress. People want to change, he said Indian voters are very smart and want change because of low job growth, low-tolerance in the country and concerns over institutional freedom.

Raghuram also put his stand over  BJP government he said, the positive about the Modi government was the enactment of GST and bankruptcy law, while among negatives were government inability to implement labour and land reforms.

He further said, "India is a largely consumption-led economy that is not creating enough jobs. But going forward we have to move towards a more job-creating economy, all the growth will go for nothing if it does not create good jobs. Consumption and investment should go hand in hand."

"Farm reforms should be in a structured manner. You need to identify who is eligible. Blanket farm loan waivers don't make sense because they go to the wrong people. There should be specific waivers for people who can't pay, just like you do for industrial corporations," he said on agriculture.

"As we become more developed, we have to manage the relationships so that it survives different personalities. Formalising some of the structures makes sense so that they are not constantly eroded."

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"For example, the position of the RBI governor what level he or she occupies in the hierarchy is completely left up to the spur of the moment, some secretaries pretend that they are above the RBI governor and the hierarchy keeps getting blurred. It is time that we make it clear what that position is and why that position exists for the other regulators as well," the former RBI governor added.