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The new chairman of the Reserve Bank of India calls for an end to his country’s version of ‘crony capitalism’

 

raghuram rajanRaghuram Rajan, professor of finance at the University of Chicago, is the new Governor of the Reserve Bank of India. He has good credentials: a former Chief Economist at the IMF, he warned about the dangers of the US financial bubble as early as 2005. He also described the failings of India’s financial sector in 2008 and the country’s credit bubble in 2012.

The Financial Times reports that he has long called for an end to ‘cronyism’ and last year the NDTV website reproduced an article on this subject from the New York Times, describing “a brazen style of crony capitalism that has enabled politicians and their friends to reap huge profits by gaining control of vast swaths of the country’s natural resources . . . “.  Sounds familiar . . .

Though acknowledging Mr Rajan’s record as a critic of cronyism, the Economist believes that he will “have his work cut out to prevent licences going to well-connected tycoons”.

Rampant also in Britain and the United States, there is little hope for a decent life for the ‘man in the street’ in these three countries unless people like Mr Rajan combine to eliminate this ‘brazen style of crony capitalism’.

Adapted from sister site: http://www.chs-sachetan.org/?p=2231