Dr Bimal Jalan visits IMI
Dr. C. S Venkata Ratnam, Director, IMI said “We are both privileged and delighted to have in our midst today such an eminent personality as Dr Bimal Jalan as well as our esteemed chairman Shri. R P Goenka who has always provided unstinting support for the development of our Institute”.
Dr Bimal Jalan said “The difference between Management of Corporate and Management of the Economy is same as the difference between micro and macro economics.” He discussed this issue from two perspectives-domestic and external. The talk demonstrated the importance of recognizing the inherent trade-offs in any situation, whether for a company or for an economy. Governors of RBI have often been vexed by the present and real tradeoff between growth and inflation. Policies that promote growth often have inflationary effect. “For the industrialist, growth is more important but for the buyer prices matter more”, he stated the challenge is to balance the two often conflicting objectives.
Dr. Bimal Jalan had students impressed with his knowledge insights into present day issues confronting the economy. He highlighted the importance of bringing down the revenue deficit, which is a constituent of the overall fiscal deficit of the government. He emphasized the challenges of financial sector development and the crucial role charted for financial and other regulatory agencies: “There is a thin line between regulation and control” he stressed.
Dr. Jalan also took up other issues including management challenge in infrastructure public distribution system, public health, and education and monetary policies.
On external issues like globalization of the world- “Globalization attracts increasing interest and importance in contemporary world affairs. It also inspires passionate supporters and critics. These in depth reports explore different facets of the complex, evolving phenomenon of globalization.”
In addition to this, Dr. Jalan also shared his views on other external issues including sudden appreciation of rupee, management of exchange rate including flexible exchange rate regime in India, free flow of capital /management of capital flow and status of foreign exchange reserves and overall management of trade.
Dr. Jalan concluded with an idea covered in depth in his recent book “India’s Politics: A View from the Backbench”. There are three pillars of the government, namely the judiciary, bureaucracy, and parliament; today, the importance of politics has grown in micro and macro economics of the country due to emergence of the coalition era of governments has increased significantly. Emergence of small parties, their switching support and the increasing role of regional parties has only added to the uncertainty in Indian politics. Managing the economy in such circumstances becomes more challenging and difficult. In addition, life expectancy of coalition governments too has shortened, adding to the enormity of the challenge, he declared.