Column : Making 2012 a better year

A A

Nirvikar Singh : Jan 16 2012, 03:32 IST

A year ago, I offered an optimistic and hopeful view of India’s possibilities in 2011. As it turned out, things were much less rosy than I had guessed they might be. I had gone with the then-popular growth forecast of 9%. Growth has been much lower. Part of the problem was the ongoing European crisis, and the US’s slow recovery. Much of the difference came from what has been happening within India.

A year ago, I remarked that the private sector in India has done well despite poor governance. This has remained true, but not to the extent that I had hoped. The general poor quality of governance was compounded in 2011 by uncertain handling of corruption, which surfaced as a major issue for India’s citizens. My view is that India’s ruling coterie is currently weak in its leadership and its vision. Too many of those who rule are focused on short-term personal advantage, rather than leading the country well. Will this improve in 2012? It is hard to say what will happen at the national level. However, one can hope for more progress in governance quality in some of the states.

A year ago, I noted the problem of inflation and the challenges of macroeconomic management. There was much talk in 2011, but nothing was done to address structural problems and microeconomic policy mistakes that have made inflation worse. RBI raised interest rates, but did it slowly, seeming to be behind the curve, while saying it was not sure its policies

... contd.

Ads by Google

Single Page Format

1 | 2 | 3 | Next