Test For Middle-Path Economist

Regarded as a master-blender of market economics and socialistic values, Bimal Jalans tenure at the helm of the Reserve Bank may be the acid test for this middle-of-the-path economist.

Jalans appointment is believed to be a decision taken by the Prime Minister himself. As far as economic thinking goes, Jalan can hardly be regarded as some one the same wavelength as finance minister P Chidambaram, a senior economist with the Planning Commission where he has been working as secretary-general since August, 1996, said.

For Jalan, the rise to the top bankers job in the country has been a culmination of his gradual ascent.

 

Fifty-six year old Jalan, has repeatedly exhibited his craft of assimilating divergent political approaches for the countrys growth into a pragmatic economic policy.

The same pragmatism, fetched him the job of leading the countrys central bank at a time when India is on the verge of shifting gears on the path of liberalisation while also guarding the interests of the poorest of the poor.

The concern for the lower rungs of society was well expressed in his book Indias Economic Crisis: The Way Ahead of 1991 which was followed by two more works on Indian economy .

Both the books - Indian Economy: Problems and Prospects (Penguin 1993) and Economic Policy: Preparing for the 21st century (Viking 1996) suggested ways for taking India through a mesh of conflicting political ideologies. Jalan is not new to the world of public finance.

His tenure in the government as banking secretary, finance secretary and economic advisor have given enough opportunities to get himself baptised into the high-voltage area of finance.

Bimal Jalans assignment as the member secretary to the Planning Commission is credited with the formulation of the Ninth Plan in association with committed Socialist Madhu Dandavate.

Bank chiefs may have to be more careful because Jalan regards the PSUs as a drain on resources. We cannot run a large public sector with the existing levels of efficiency. This is not an ideological position. It is a pragmatic lesson from our own experience and from the experience of east Europe countries, he told a news magazine a year back.