Economists, cricketers playing on same pitch
OUR BUREAU
HYDERABAD, December 29: There is much in common between Indian economists and the Indian cricket stars, according to RBI deputy governor YV Reddy. Both, according to him, excel in individual performance but are a failure as a team. And not surprisingly, the Reserve Bank of India too is confronted by a dilemma which dogs the Indian selectors. It is having a tough time finding new talent good enough to meet standards."We are not bad pay masters by Indian standards. And though a large number of candidates appear for the entrance examinations, the required number are not able to meet the minimum standards prescribed by us," the former bureaucrat and present deputy governor of RBI lamented addressing the cream of Indian economists at the conclusion of the 80th annual conference of the Indian Economic Association (IEA), here today. Delivering a valedictory address on Economists and Public Policy, Reddy recommended the setting up of or upgrading select centres as Indian Institutes of Economics (IIE)s, on the
lines of IIMs and IITs to impart better training and direction to academics in economics. On the contrary, however, a good economist may not always mean a good policy, the former bureaucrat turned banking policy expert felt. Harking back to what noted economists BS Minhas and Bhagwati had observed once, Reddy felt that a good or brilliant economist does not ensure good economic policy and wondered whether it was not entirely wrong to agree with the cynical view that India's misfortune was to have brilliant economists. Nevertheless, economists in India have always held, and continue to hold a special position and enjoyed power, influence, publicity and financial support far superior than most other disciplines, Reddy observed. On its part the RBI has taken upon itself the role of building bridges between the academics and practitioners of economics. The central bank has set up the Development Research Group (DRG), which will be a division of the Department of Economic Analysis and Policy of the
bank. The DRG funds research studies in economics in collaboration with academicians and professional economists outside the bank. It also funds setting up of endowment chairs in universities and institutions. It also gives grants for specific research projects on specific subjects in economics. The DRG has already funded institutes like the Indira Gandhi Institute for Development Research and the Institute for Development and Research in Banking Technology, he said. Calling for a more conscious effort towards involvement of economic administrators, managers and economic journalists in academic pursuits as also policy advice, Reddy stressed on the need to develop the concept of case analysis in order to learn from previous decisions, some of which have tended to be critical and controversial. The case studies are necessary not as much to draw comparisons or conclusions but to depict the complex process of decision-making and reflect how some decisions are taken on the advice of, and some inspite of,
economists in the government. "Often, an economist in the government ends up defending in public the actions that he pleaded against in discussion with the government," Reddy observed.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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