This refers to the “Govt and banks — a con game at some level’ (Business Line, July 21). One wishes those responsible for policy formulation in Delhi listen to the sane and balanced observations made by the veteran central banker, Dr Y. V. Reddy, in the interview. Reinforcing his own views, drawing from the experiences of I. G, Patel, Dr Reddy has conveyed the message that solutions to India’s economic problems need to be country-specific.

Having accepted the model of ‘mixed economy’, India had gone a long way developing several industries and institutions in the public sector by the time the private-sector-oriented reforms were introduced in 1991. It was a genuine slip that policy-makers at the helm failed to take advantage of the opportunity to smoothly blend the initiatives in public and private sectors in the initial stages.

An impression was given that the private sector was to compete with the public sector and not to complement its efforts.

In the process, the private sector managed to corner areas where quick results were possible and left all the ‘dirty’ work to public sector.

We have come a long way without looking back and the present pulls and pushes do not allow us to sit back and think dispassionately.

We have to concede that whether in the public or private sector, for ensuring overall progress, the country’s resources have to be managed judiciously and that is the context in which Dr Reddy bats for ‘adequate regulatory mechanisms’.

M. G. Warrier

Mumbai

(This article was published on July 22, 2012)
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