Raghuram Rajan pitches for decentralisation
Stressing on the need for decentralisation, former Reserve Bank of India (RBI) governor Raghuram Rajan stated that India is too big to be managed from the Centre. According to him, more power needs to be vested with the State as that will strengthen democracy. He further stated that making capitalism work is intertwined with making democracy work. With a functioning democracy, there are checks and balances on the government, on crony capitalism and one can prevent all the fruits of capitalism being extracted by a select few, Rajan added. He also stressed on the need for public sector enterprises, including banks. The former RBI governor believes that better governance can have the same desired effect as outright privatisation. Rajan was also critical of the government for being less focused on healthcare and education and slashing expenditure.