Rajan to India’s Rescue
University of Chicago economist, Raghuram Rajan, has been
chosen as the Chief Economic Adviser to the Indian PM (more specifically to the
Finance Ministry). He is certainty a fantastic choice and hopes are pretty
high.
http://www.nytimes.com/2012/10/06/business/global/rajan-an-adviser-to-indian-government-urges-changes-to-economy.html
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Shashi Tharoor captures the inherent dilemma faced by
democratically elected governments that pursue structural reforms:
“Part of Singh’s
problem is that decisions that hurt voters (higher diesel prices, fewer
subsidized cooking-gas cylinders) have an immediate impact, whereas the
benefits of foreign investment, for example, take years to become apparent. All
politicians in democracies think in the short term; few have time horizons that
extend beyond the next election.”