Thursday, May 26, 2016

764 (Part 8/100 of Indian Economic Enigmas)- We should appreciate the courage of Mr. Raghuram Rajan

I am no devotee or critic of Mr. Raghuram Rajan, the Governor of Reserve Bank of India, whose tenure is going to come to an end, and on internet, there are demands for extension of his tenure. Though he himself, has not openly sought an extension, once he gave a clue to the effect that he needs extension, because there are many things left to be done by him. There are also reports that he met the Prime Minister, Mr. Narendra Modi, and the Media is speculating that they might have talked about his extension. Whether the Government of India, its PM, its Finance Minister, grant him an extension or not, we can appreciate the fearlessness, openness of Mr. Raghuram Rajan, when he speaks. Any person who wants an extension for his tenure, or one who wants a favourable decision from another party, will not assert himself much, and say things which will irk the decision-maker. But, Mr. Rajan is free from such narrows perspectives, and he sticks to the instincts of his conscience. Here is one such example:--

Link: Click to go to: .

Mr. Rajan's Speech at Bhubaneswar. Date: 20th May 2016. Context: He was addressing his Bank's staff in Odisa.

"... RBI has been enjoying full autonomy and support of the government so far and it should be allowed to take its own decision ... "

ybrao-a-donkey's humble comments. वैबीराव एक गधे के विनम्र राय . వైబీరావ్ గాడిద వినమ్ర వాణి. You have every right to differ with me. I respect your right. आपको मेरे मत से भिन्न राय रखने के संपूर्ण हक है। मै उस अधिकार को परिपूर्ण रूप से गौरव देता हुँ. మీకు, మీ భిన్నమైన అభిప్రాయాన్ని కలిగిఉండే సంపూర్ణ హక్కు ఉంది. దానిని ఎంతో నేను గౌరవిస్తాను. However, pl. examine this donkey's views also. परन्तु एस गधे के दृष्टिकोण को भी अनुशीलन कीजिये. కానీ ఈ గాడిద దృష్టికోణాన్ని కూడ ఓర చూపుతో కంటజూడుమీ, క్రీగంట జూడమీ.

This type of Mr. Rajan's openness, if it comes to the Notice of India's Finance Minister or the Prime Minister, they may not take it lightly, notwithstanding the competence and expertise of Mr. Rajan in the arena of Banking and Finance. (Mr. Arun Jaitley, India's Finance Minister is a lawyer, and not an Expert in Banking & Finance. Mr. Narendra Modi is neither, notwithstanding his M.A. in Political Science).

There may be, at their (PM & FM) disposal, plenty of Banking & Finance Experts, who may be equally keen to drive the Prime Engine of Indian Economy. As a matter of fact, Mr. Rajan is more of an expert in super-macro-level international finance matters. He may not be aware, what happens at grass-root levels, in Indian Banks. It will be better, if instead of dumping some IAS/IRS bureaucrat from the Finance Ministry onto the throne of RBI, to learn how Bank Branches function, the Government of India appoints an existing CEO or a just retired CEO of an Indian Public Sector Bank as RBI Governor.

It is hightime that BJP Government restores a long neglected healthy custom of appointing RBI Governors from the Field level Operational Side of Banking Sector, instead of pushing down administrators from Delhi Corridors of Power.


Succession of bourgeoisie Governor by another bourgeoisie bureaucrat, in a bourgeoisie Administration and Economy will not make any difference, for the people. If X becomes a Governor or Y becomes Governor of RBI, that may be liked or disliked by Business Persons, Industrialists, and Top Bankers, depending on their own perspectives of benefits, costs, difficulties, entanglements, fortunes etc. At least 50% of India's population, do not know that there is an institution called RBI which administers and monitors the Economy of this country.

Bulk of the population may know about the existence of State Bank of India, or some other Public Sector Bank popular in their Area, but definitely not RBI, not to speak of RBI Governor, his-her-its autonomy, and their relationships with the GOI, PM, FM, Finance Ministry etc. Even Indian Media may not be truly interested in these things. They will be more interested to know when Mr. Salman Khan is going to marry his Rumanian friend Lulia vantur, or the colors of the curtains decorated in Salman Khan's Galaxy Apartments, Bandra, Mumbai.

As per my fad of TRUE COMPLETE SOCIALISM, we may have to envisage an Economy of India, in which there will be no currency and money, for domestic consumption, exchange, investment, savings or other uses. When private property is FULLY nationalised, and every essential need of citizens are met by the Government FREE, and ADEQUATELY, there should be no place for currency or money.

A Reserve Bank of India will become necessary only for handling India's Exports and Imports, and managing the External Value of Indian Rupee. As all the exports and imports are done only by the Government in Public Sector and only by State Organs, Reserve Bank's Role will revolve around the objectives and operations of the State.

I have already written many times about the need for intellectual upgradation of India's Working Class (Proletariat). India's Working Class will have to take more interest in the Banking and Economic Structure which India needs, if True Complete Socialism is not to remain a fantasy.

I may not live long; yet I too seem to have a fantasy, of starting a school / Institute for generating and updating Leftist Economists and Leftist Economic Models.

Subject to corrections and deletions. A lot more is to be added. To continue. सशेष. ఇంకా ఉంది.


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ఘోరమైన విమర్శలకు కూడ స్వాగతం, జవాబులు ఇవ్వబడతాయి. Harsh Criticism is also welcome.