Will Rao join the FM in the walk-back hand-in-hand with each other?

Subbarao, the former RBI governor fired some salvos as a parting gift to
the current FM last Thursday. That it took him 5 years to take a broadside
at the FM on the last working day of his career, shows how little spine the
Central Banker had been left with.

More importantly, it brings to the open certain disturbing signs that were
spoken off in hushed tones but are now visible in the open.  The lobby of
students who have read Economics at school and who now run what else-but
the national media and newspapers lapped up Rao's speech.

But who's responsibility was Rao alluding to when he raved and ranted over
the North Block interference and pressures. The fact that he highlighted
that RBI was manned by the over 50s tribe, which had no knowledge of
financial markets and he himself came from the IAS with a bare-bone
graduate degree and past designation as Finance Secretary shows how poorly
the educated in this country are treated. There is a segment of jobless
PhDs who seek pastures overseas and there is the graduate lobby that has to
it's credit the achievement of having passed the IAS entrance exam but
except for a 2-3 month training in Simla have not even the smithers of a
professional knowledge. These are the people who run the nation's finances.

Instead of taking jibes at the stubborn, stoic, sullen and arrogant FM the
RBI Governor should have explained why having seen the Exports and CAD
deteriorate for 3 years they did nothing and then destroyed all Debt funds
overnight by raising interest rates by 4 per cent and limiting access to
repo. Why did the central bank continue to push for banking licences when
half of the private banks are available at 0.3 times book and the PSU set
up is virtually bankrupt.

The long march alone, that Rao was alluding to might not be limited to the
FM. It may well be applied to Rao, when he thinks in hindsight-"not thank
god there is an RBI", but "Why is there an RBI in place.".

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