FREE MARKETS FOR INDIA

Someone is reading India the riot act.  His name is Raghuram Rajan.  Rajan is the chief economic advisor to the government serving under its finance minister.  Rajan happens to be an Indian national educated at Chicago’s Booth School of Business.  Perhaps that dual-world exposure puts him in a unique position to bring strategic input to India’s economic policies.  Bruce Einhorn and Unni Krishnan describe Rajan’s charges in Bloomberg Businessweek (“Mr. Free Market Goes to India” 3/25/13–3/31/13, pp. 11–12):

Rajan’s view of India’s problems, as stated in a number of withering speeches, is that corrupt politicians, officials, and middlemen have hobbled free markets by monopolizing licenses, government funds, infrastructure projects, and more. . . . On March 13 he told Indian broadcaster New Delhi Television that India is overregulated, and that sick companies don’t die quickly enough.” (p. 11)

Rajan is a strong believer in free markets.  Therefore, he can clearly see the numerous bottlenecks in his nation’s economy.  Rajan’s overarching economic plan calls for:

Cutting the number of regulations to reduce opportunities for corruption, tearing down trade barriers to allow more foreign competition, dismantling labor laws that stifle hiring, and overhauling the financial system to make it more responsive to ordinary customers.” (p. 11)

These sweeping kinds of reforms may take decades.  Nevertheless, I admire Rajan for having the bravery to identify the problems and propose solutions.  If India does not relook at its economic policy, it will eventually sabotage its growth.  As Rajan warns:

‘India’s continuing on a rapid growth path is not preordained.’” (p. 12)





About James Meadows

Currently I serve as a training team manager for Tyco Integrated Security at a customer-care center in Kansas City. Additionally, I am a business consultant, a freelance corporate writer, an Assembly of God ordained minister, a Civil Air Patrol chaplain, and a blogger. I believe we are living in the most fascinating times of human history. To maximize the opportunities these times present, I have a passionate interest in leadership development and organizational success, both of which I view as inextricably linked.

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