Why Can't Modi Buy Raghuram Rajan Who Opposes Demonetization?
Why can't Modi buy Raghuram Rajan, who keeps saying that demonetization was a bad decision? This question not only lacks logic but also misunderstands the nature of political appointments and the RBI Governor's role.
The Appointing of Raghuram Rajan
Raghuram Rajan was appointed as the 23rd Governor of the Reserve Bank of India (RBI) between September 2013 and September 2016. His appointment was confirmed by the UPA Government which was in power at that time. During his tenure, Rajan was also a Vice-Chairman of the Bank for International Settlements (BIS).
However, when a new government led by Prime Minister Modi took over, Rajan’s term as RBI Governor was not extended. This was because the appointment of the RBI Governor is largely a political one, and Rajan was not in favor of demonetization, which is a decision made by the government despite Rajan’s disagreement.
The Role of the RBI Governor
The RBI Governor acts as a technical expert and advisor to the government, but the final decision-making power lies with the government. It is not unusual for the RBI Governor to express dissenting views, but this does not entitle him to continue questioning governmental decisions beyond his tenure.
The Context of Demonetization
Raghuram Rajan is not coming back, and the government does not owe him any explanation for demonetization, even if the results subsequently proved detrimental. The debate over demonetization is a topic that critics, particularly those from the Congress Party, have labeled as "breaking" the convention of extending the RBI Governor's term. However, the government does not need to adhere to a convention established by a different party.
Contradictions in Public Opinion
While populist leaders and regional parties may mislead the uninformed, on a larger scale, people evaluate and understand the situation based on facts and figures. Organizations such as the International Monetary Fund (IMF), the World Bank, and Moody's have provided positive assessments for demonetization and GST, predicting India as a fast-growing economy in 2018. These assessments do not hinge on personal opinions but on comprehensive analysis and data.
The Absence of Political Influence
The idea that Modi can "buy" Raghuram Rajan shows a misunderstanding of political and professional ethics. Rajan was hired by the Congress Party when they were in power, and any political leverage would be limited to his time in office. His subsequent positions and opinions are formed independently, based on academic and professional expertise, not political allegiance.
Conclusion
The question of why Modi can't buy Raghuram Rajan who opposes demonetization is nonsensical. The RBI Governor operates under specific terms and conditions, and the government's decision to end Rajan's tenure was within their rights. The overall context shows a broader understanding where facts and figures are valued over individual opinions.