obituary . The original free trade messaiah

In the passing of TN Srinivasan, India has lost one of its sharpest economists. Indian economists around the world joined the chorus of tributes and praise for the academic, whose publications and teachings made great inroads into several important economic policy concepts that governments around the world, and most notably in India, are still grappling with today.

Teachings and beliefs

Srinivasan’s teachings and beliefs regarding international trade would and should have an impact in all discourses on the subject, especially today when a number of large economies are increasingly looking inward and adopting protectionist policies. He believed that international trade should be free and without barriers. It was a somewhat Darwinian approach to commerce, where each country would cease trade activities in areas in which it was at a significant disadvantage and would flourish in those fields where it was stronger.

“His professional work was absolutely first rate,” Montek Singh Ahluwalia, member of the erstwhile Planning Commission, told The Hindu BusinessLine , having interacted professionally with Srinivasan many times throughout their respective careers. “He was one of the early economists who worked quite a bit on what we now call economic reform. He was deeply interested in the subject and always willing to discuss virtually any aspect of it. It is a big loss that he is no more with us.”

Recently, Srinivasan spoke about how US President Donald Trump’s decision to re-impose sanctions on Iran would be detrimental for the global economy as a whole, and for India, in particular. He also commented on a number of contemporary issues regarding the Indian economy, including demonetisation, inflation targeting, and the fiscal deficit.

Another crucial contribution he made to economic discourse and policy making in India was along with Jagdish Bhagwati, where he spoke about how the government should move away from allocating resources and that such control had many more systemic problems than leaving such decisions to the market.

Sharp critic

Srinivasan was also well known (and somewhat feared) for being unforgiving of errors in method, sharply criticising such lapses. His critique of an IMF working paper by Dani Rodrik and former Chief Economic Advisor Arvind Subramanian on India’s transition from ‘Hindu growth’ to productivity is a devastating case in point. “This is a disappointing paper,” Srinivasan’s first line reads. “It sees a mystery and fails to convince through analysis why it does. Had the authors been familiar with Indian economic literature, they might not have written it!”

“According to everybody who was taught by him, he was a great teacher,” Ahluwalia added. “He didn’t have a high opinion of the so-called ‘high and mighty’, and he took a lot of trouble with students, explaining things to them. He regarded criticism as something that should go to the limit. ”

Another excellent example of his self-deprecatory wit can be seen in his comments on the report by the committee headed by a former student of his, current RBI Governor Urjit Patel: “I have to share the blame for any fault in his committee’s report, for not having trained him appropriately!”

The 15th Finance Commission on Twitter issued an official statement on Srinivasan’s demise: “The Commission is feeling saddened by the news of the demise of TN Srinivasan. A towering figure whose iconic works in macroeconomics has left an indelible footprint for academic India. We convey our heartfelt condolences to the family and pray for peace to the departed soul.”

Now, if only they also heeded his advice.

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