Dear Friends,
When I woke up to read the newspaper today morning, there was a news article that had quoted a regional daily, from unknown sources that Dr.Rajan might not be interested in extending his tenure for 2 more years. I was shocked and continue to feel sad even now, pretty much my entire day is gone thinking about this.
Ex. Finance Minister Mr. P.Chidambaram, couple of days back, when asked by press as what he thinks on some political persons maligning Dr. Rajan, he responded, “India does not deserve a person like Rajan”
I have read quite an amount of his professional life and seen several video lectures. One of the elite economists in US had quoted that Rajan would be a good candidate to take over the Fed Chief role, subsequently taken over by Janet Yellen. Rajan is not even a citizen of US but to have a person of such calibre to take over as the key economist for US, fast tacking his citizenship should not have mattered. He would have been the most powerful voice in the world of Central Bankers.
Rajan’s track record is impeccable with a stint in International Monetary Fund as the youngest chief economist.
It was August 2005, at an annual gathering of high-powered economists at Jackson Hole, Wyoming during an occasion, when Alan Greenspan was being honoured, Rajan a professor at the University of Chicago’s Booth Graduate School of Business, chose the moment to present a paper called “Has Financial Development Made the World Riskier?“ When he argued for a ‘Yes” and expressed his views,, came under attack as an anti market Luddite, wistful for old days of regulation.
Subsequently his views came to be seen as prescient and he was extensively interviewed for the Oscar-winning documentary Inside Job (2010). Rajan came to limelight across the globe. The subprime financial crisis has savaged the reputation of Mr. Alan Greenspan and others now seen as having turned a blind eye toward excessive risk-taking.
His book, “Fault Lines: How Hidden Fractures Still Threaten the World Economy”, won the Financial Times/Goldman Sachs “Business Book of the Year” award in 2010. In 2016, he was named by Time (magazine) in its list of the ‘100 Most Influential People in the world.
In 2008, it was the due to the efforts of Dr.Manmohan Singh and Chidambaram, Rajan started taking up assignments in India, became the chief economic adviser to ministry of Finance replacing Kaushik Basu. He prepared the Economic Survey for India during the period 2012–13.
Subsequently, on 6 August 2013 it was announced that Rajan would take over as the next Reserve Bank of India Governor for a term of 3 years, succeeding Duvvuri Subbarao. on 5th Sep 2013 he took charge as the 23rd RBI Governor (3 years ending on 4th Sep 2016).
Dr.Rajan has taken leave of absence from the University of Chicago Booth School Of Business.
Dr. Rajan is also known for his humility. A highly successful person of such repute, when he has sacrificed his cool life as a professor in Chicago, relocating to India to serve the nation was subjected to mudslinging by our great politicians and bureaucrats. Though he is the person at the highest position at RBI, his package is lesser than some of his subordinates as per the press release.
Based on his slightly soured relationship with Finance ministry, since last year there were rumours that International Monetary Fund’s Managing Director, Christine Lagarde would be succeeded by Rajan as the tenure of M.D. of IMF is getting over and at the same time, Rajan’s 3 year stint as RBI governor comes to a closure. Rajan’s key interest is research based academics and he has a flair for teaching.
There are only a few IITians (single digit %) who wanted to contribute directly by taking up a assignment and settling in India (People settled abroad contribute mainly through sending Forex). Here is a person who has a gold medal from IIT, gold medal at IIM A and a doctorate from Sloan School of Management, MIT and respected world over for his contribution in Economics. There will be maximum of dozen people in the world with this kind of a profile.
One of the Joker politicians (person who has no credibility with his own colleagues) rants for Rajan’s removal saying he is not a true Indian and wanted to become an American Citizen.
Another baffoon from Ministry of Finance, when asked by press about the allegations on Rajan, says we will neither take the Jokers words and the same time will not consider his international image as though Rajan had come begging for a job. By making another statement that we will look at your extension only in Aug 2016, one month before his tenure ends, sent a very wrong signal. Did the ruling political party say that they would decide the PM candidate only after they win the elections?
Rajan also has a family and the academic year for children typically starts in Aug in US, while it starts in June in India and their studies will be affected if they wait until Aug and then come to know that they will continue in India. If the government does not extend his tenure it will send a very bad signal to the global community and probably Rajan would also got disappointed after relocating to serve India. I guess he chose the option of moving back to US and seem to have sent his wife and kids to US.
I have never heard of a RBI governor, so popular among our people to the extent that they may not know the FM but know Rajan (I guess this is also a reason as his popularity would mask FM’s). Of late, there were several surveys done on Rajan’s performance and extension and whatever I have seen, they are more than 80% which is quite rare. A person in the north had written to PM Modi and solicited for votes in Change.Org. The number is around 57,000+
Our politicians and bureaucrats neither do any good to our country nor allow a person like Rajan to serve.
I would subscribe to PC’s statement – “India does not deserve a person like Dr. Rajan” God save us
<Blog # PenguWIN 1039 – India does not deserve a person like Rajan>
This is true, collectively our politicians are successfully driving us towards situation where we don’t want to be.
The good thing about Rajan is, he goes about his job and says things as he sees it, irrespective of what others think. It will definitely be the nation’s loss if he goes with only one term. Modi may follow usual practice and renew term for another 3 years as institutions like central banks need that kind of stability. Rajan may have many offers lined up including the IMF but he has said he will put this job ahead of all others.
So, does India deserve a person like Rajan? Yes! India not only needs but also deserves people like Rangarajan, Manmohan Singh, Subba Rao, YV Reddy and Bimal Jalan. All of them were impeccable and did their jobs well. They also copped some criticism but Rajan probably has more visibility, that’s all.
Very true. And I don’t think we can blame or be upset with Dr.Rajan’s decision. After all, he has a family he is responsible for!
Not sure if some readers have got my statement wrong. I am for Rajan’s extension (why would any sane thinking person let go of a globally accepted Economist like Rajan). The kind of treatment he was subjected to is what Indian Politicians and Bureaucrats offer to Intellectuals like Rajan and our system is deeply rotted such that even people who have genuine interest to contribute to development of India, are treated like this. We have a history of such acts and this is not the first time. By chance our politicians nominated Dr. Abdul Kalam. Though a president in India has limited powers to contribute and more of ornamental role, he tried to give his best but was not given an extension. Similarly, Dr. Manmohan Singh was a great economist well respected globally, who unfortunately got mired in the political web and whatever accolades that he won as a economist, by taking up the PM role, lost more than what he had earned. When Dr. Singh became the PM, Chidambaram was the Finance minister and Abdul Kalam was the president. Such a combination of Intellects is something no country can get (I still remember the pride that I felt hearing this news).Unfortunately, it turned out to a damp squib 🙁
I wish for Rajan’s extension as Governor of RBI. Dr Ravichandran S
No votes to BJP is they make a person of Rajan’s calibre leave.
He would have continued, had he stopped giving press conferences on his own, instead let the politicians give press conferences and just feed them with data. I Don’t think anyone cared about what Finance minister/ministry had to say in the past 2 years, all were only looking at RBI Governor. That was the problem :-))
Subramanian Swamy is 76 yrs old. Why doesn’t he retire???