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Dr.N.A.Mujumdar
is an authority on Agricultural Economics and is currently the Editor of the
Indian Journal of Agricultural Economics and the Honorary Professor at the
Society for Development Studies. He was
Principal Adviser, Reserve Bank of India School of Economics University of Bombay Zambia Mauritius Belize Cambodia
Ours is a defining moment in the
history of the global economic system. The 2008 collapse of the capitalist
model of the American economy was as traumatic as the crash in 1991 of the
Russian communist model. India
The book under review is an attempt to convince us that we must grow up
from the conventional growth economics trapped in market theology to resonate
to larger concerns of holistic development. The author has assembled thirty of
his articles and speeches at different fora. He pleads for a broad-based,
decentralized growth which would facilitate access by the poor to employment, food
, nutrition and health and quality education and ensure safety nets that reduce
the vulnerability of the poor—all these efforts resulting in a value-based society.
The analysis in the book proves beyond doubt that the economic reforms
introduced in 1991 diluted the development content and reforms soaked in market
theology went further degenerating into
anti-development instruments. Unbridled market philosophy during 1991—2004 had
a negative impact.
The
book is divided into five parts. The first part dealing with approaches to
development has nine articles. All those involved in development of our economy
have to re-think their strategies in response to the new emphasis given on
“inclusive growth”. The essay on ‘Sustained Development’ emphasizes that
intra-generational equity is as important as inter-generational equity.
Sustainable development is a co-operative enterprise in which both public and
private enterprise have a role to play. Public and private—community-centred
development is the key to sustained development. Three core issues in the
present financial scenario are —Inclusive growth or broad-based decentralized
growth in the real sector, New architecture of the financial system to
facilitate such growth and the Inequitable interest rate structure. These must
be tackled vigorously for India
The second part of the book is devoted to the Financial Sector reforms
and incorporates three essays. There is a cogent analysis of financial
inclusion which demands a systemic perspective on the part of the players. The
High Level Committee on Financial Sector Reforms under the Chairmanship of
Prof. Raghuram
Rajan has come in for a severe drubbing by the author. “The recommendations of
the Committee are based on amateurish understanding of the Indian economy. The
Committee has failed to address the basic issue of how to reshape the financial
system to promote inclusive growth. The Report belongs to the genre of IMF /
World Bank reports, characterized by excellent presentation, obsessed with
market theology and marked by a sense of superciliousness. The authors of the
Report lack a sense of Indian economic history”.—a stern indictment indeed.
Incidentally, the Committee did not include a member from R B I.
“Monetary
and Credit Policies” form the subject matter of part three and has ten essays.
There is a critical analysis of policies in the post-reforms period and a
stirring call on the part of R B I to
evolve a blueprint of area-specific plans to facilitate banks and financial
institutions to promote inclusive growth in the real sector. A number of essays
analyse credit and monetary policies during 2007—2009.
The fourth part is concerned with global crisis and India
The final part is dedicated to the Agricultural Sector and has two
articles. It draws pointed attention to three issues—(i)-Exports of foodgrains,
(ii) Foodgrains management and (iii) Watershed development.
This is a book bursting with radical ideas and presents an incisive
analysis of our problems. It is warmly commended to all students of
agriculture, banking and central bankers.
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