Strong government doesn't move always in right direction, says RBI Governor Raghuram Rajan - NEWS
Citing
Hitler's example, RBI Governor Raghuram Rajan on Friday cautioned
that a strong government may not always move in the right direction, while
suggesting a middle path between unchecked powers to the administration and a
"complete paralysis".
Giving a lecture on 'Democracy,
Inclusion and Prosperity' in Goa, Rajan said India has strong institutions like
the judiciary, the Opposition, media and NGOs, but the government and
regulatory capabilities need to be strengthened.
At the
same time, the country would have to resist the "temptation to implant
layers and layers of checks and balances even before the capacity has taken
root," he said.
"We must choose a happy medium
between giving the administration unchecked power and creating complete paralysis,
recognizing that our task is different from the one that confronted the West
when it developed, or even the task faced by other Asian economies," Rajan
said.
While stating that a strong
government should be led by those who have expertise, motivation and
integrity and can provide the needed public goods, Rajan warned that
"strong governments, may not, however, move in the right direction".
"Hitler provided Germany with
an extremely effective administration -- the trains ran on time, as did the
trains during our own Emergency in 1975-77.
"His
was a strong government, but Hitler took Germany efficiently and determinedly
on a path to ruin, overriding the rule of law and dispensing with elections.
"It is not sufficient that the
trains run on time, they have to go in the right direction at the desired
time," the RBI Governor said.
The economic inclusion, he
added, should mean easing access to quality education, nutrition, healthcare,
finance and markets to all citizens for ensuring sustainable growth.
He further said that in many areas
of government and regulation the country needs more specialists with domain
knowledge and experience.
"For
instance, well-trained economists are at a premium throughout the government,
and there are far too few Indian Economic Service officers to go
around," Rajan said.
Observing that democratic
accountability is very strong in India, he said "we may have a long way to
go (as far as) the capacity of the government, by this I mean regulators like
RBI also, to deliver governance and public services".
ERODE (TN)
ASKA - ODISHA
CHENNAI CITY NORTH DIVISION- TN
ONGOLE- AP
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