Column : Making 2012 a better year
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 Indiaís citizens. My view is that Indiaís 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
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