Disturbing fiscal deficits, swinging economy, surging GDP and mounting burdens, will there be a divine hand to help the nation scale better peaks in the present context. Can there be someone who could make this difference. Is there a hope on the anvil! This could be the oft repeated questions by many of our NRI readers who are more concerned about the national development, with a hope that they could come back and live a happy content full life. And probably at the moment the answer is Dr Raghuram Rajan, who is taking over from Kaushik Basu as the chief economic adviser (CEA) to India’s finance ministry.
Dr Rajan assumed office on Wednesday, over night expectations and predictions are not correct. However it is simple agriculture truth that if you sow the cereals, the rice will not be harvested. Precisely you reap what you sow, taking that into consideration. What actions will the new CEA take, to put this sagging economy back on the saddle.....is a million dollar question. But why this speculation when Dr Rajan takes over...well an optimist looks at every point with hope and that is what Wishesh is also doing.
Who is Raghuram Rajan: Dr Rajan is an alumni of Indian Institute of Technology in New Delhi. He was on various global assignments and is an expert in liberalization and privatization. He was also into teaching the economic stalwarts at the University of Chicago’s Booth School of Business, as the professor of economics. He had been keenly watching the nation's growth trajectory, since the now Prime Minister was then the Finance Minister in 1991, during which time economic reforms took center stage. Dr Rajan was the former International Monetary Fund chief economist. With so much behind him, it is but obvious that the nation of billions, looks up to him for better fiscal structure in the future.
What is expected on the reforms side: Dr Rajan is expected to do a balancing act and the factors that need to be evaluated at all times is to take stock of the situation on two parameters. One is he must see that the ruling party must find no fault with the suggested reforms. Two must emphasize the ruling party to take the consensus of all the stake holders by forming a joint meet. As development is felt across the lengths and breadths of the nation irrespective of parties. That simply means till the vote bank politics are unhindered the ruling party support will be a blessing for the new CEA. And as for the oppositions taking suggestions instead of passing an announcement, will do the needful.
Where are the carrots and where is the stick: Probably in his shoes as his predecessors said the subsidies on certain fuels such as diesel, cooking gas and kerosene is a big burden on the economy. If he thinks on the similar lines it is going to be a drive on a bumpy road, for this economist too. On the contrary this gentleman who had expressed in his book Fault Lines, published in 2010, is sure to strike a positive chord on the issue. As his fundamental in the book was that 'rising inequality as the main cause of economic instability in the world.'With this the book also dealt with 'a phenomenon that is evident by the numbers who cannot afford to live at the poverty line defined by the government.'His penchant for fiscal discipline and supply-side solutions, is giving the thrust to our expectations.
With so many hopes and expectations and ofcourse the hurdles that come along with it, the 'CEA' seat is more of a Damocles throne. Wishesh wishes the Dr Rajan that he succeeds in his actions and adds more esteem to the institution. (With inputs from internet-AW AarKay)
