Raghuram Rajan says suppressing criticism is a sure fire recipe for policy mistakes

By: |
September 30, 2019 10:49 PM

Raghuram Rajan's observations come in the backdrop of the Modi government removing Rathin Roy and Shamika Ravi from the Economic Advisory Council to the Prime Minister as they were critical of the government's policies.

Raghuram Rajan, RBI Governor,  Rathin Roy, Shamika Ravi, indian economy,  Raghuram Rajan newsRajan also said it is only criticism that prompts government to take period policy course correction. (Reuters)

Suppressing criticism is a “sure fire recipe” for policy mistakes, cautioned former RBI Governor Raghuram Rajan in a hard-hitting blog arguing that people in authority should tolerate criticism. Rajan also said it is only criticism that prompts government to take period policy course correction.

“If every critic gets a phone call from a government functionary asking them to back off, or gets targeted by the ruling party’s troll army, many will tone down their criticism. The government will then live in a pleasant make-believe environment until the harsh truth can no longer be denied,” Rajan said while recalling the achievements of noted jurist and doyen of liberalism in India Nani Palkhivala. People in the authority, he emphasised, have to tolerate criticism.

“Undoubtedly, some of the criticism, including in the press, is ill-informed, motivated, and descends into ad-hominem personal attacks. I have certainly had my share of those in past jobs. However, suppressing criticism is a sure fire recipe for policy mistakes,” he said. Rajan, who is currently a professor of finance at University of Chicago, said constant criticism allows period course correction to policy.

“Governments that suppress public criticism do themselves a gross disservice,” he added.

Rajan’s observations come in the backdrop of the Modi government removing Rathin Roy and Shamika Ravi from the Economic Advisory Council to the Prime Minister as they were critical of the government’s policies. Shamika Ravi, the director of research at Brookings India, and Rathin Roy, the director of the National Institute of Public Finance and Policy, had questioned the government’s decision to borrow funds from overseas markets through the sale of sovereign bonds. Rajan, too, earlier cautioned the government about the consequences of raising funds through overseas sovereign bonds.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Farmers allowed to enter Delhi, allotted site for peaceful protest
2PM Modi speaks to British counterpart Johnson on COVID-19 vaccines, trade and security
3Who is Suvendu Adhikari? Why his fallout with Mamata Banerjee matters for TMC