Raghuram Rajan and the Goebbels law: How Indian govt is silencing the-other-voice systematically?

In Raghuram Govind Rajan, we have lost not only a finest mind in the world of economics today but also a free-thinker who minced no words in calling a spade a spade. What you’ve heard enough is that Rajan predicted 2008 global financial crisis three years before in his 2005 paper, Has Financial Development Made the World Riskier? But what you’ve not heard is how he holds the record for being the youngest-ever Chief Economist at the International Monetary Fund (IMF) apart from IIT as well as IIM degrees. Time magazine recently included him in their coveted ‘The 100 Most Influential People’, it wrote, “he steered India through the global crisis and fallout, playing a large role in making it one of the emerging-market stars of the moment”. Remember how social media was full of rupee-on-free-fall jokes? That’s when Rajan took the job of Reserve Bank of India Governor. Those were the days when rupee used to fall each day to new lows, jokes on ‘finest economist’ (then) PM Manmohan Singh were at their worst best, but where are they now? New York Times wrote - He took over the Reserve Bank of India in 2013. At the time, India’s economy was considered one of the “fragile five” emerging markets, and the rupee was in free fall. The technocratic Mr. Rajan was credited with reining in double-digit inflation and winning back the confidence of international investors. Indian journalists called him a “rock star economist” and, in a reference to India’s benchmark index, said he had “put the sex back in Sensex.” One can list many of his accomplishments, key being targeting inflation, cleaning up banks and licensing. Prime Minister of India wherever he goes, whatever he does, anything and everything gets lauded as some first. Rajan’s exit is no different either. Mr. Rajan is the first RBI Governor in post-liberation India to go in just 3 years. Every other governor before him had got the extension. One can only joke if it was Indian government’s desire to score another first which made Rajan see the door for we will never know the truth of his exit. Rajan was no doubt the finest brains in economic world and to not retain him is Modi govt’s blunder judgement whose results god forbid we will see in the future to come. Rajan was the credible face, respected across the globe for his clarity on policies which help retain the confidence of investors at the time of crisis. Brexit is upon the world in coming months and Rajan was the man that would have instilled confidence about India globally. It is not Rajan who has lost, he will go back to academia which he always wanted to but India and its economy which is at loss, and the government through its proxies ensured he returned to the realm of ideas (in his own words) back at University of Chicago.

It all began with Subramanian Swamy’s attacks which were more personal than critique of Rajan’s work, allegations which barely had any bones but all straw. Swamy is well known in media circles for his brazen attacks which only once in a blue moon hits their target but nothing bothers the loose cannon in him to stop. He goes on and on and on until what he says becomes the gospel truth. Speak what is untrue several times over and it becomes the truth is Goebbels law for the world outside India but for us it is Swamy’s treatise. But to allege Swamy alone for Rajan’s exit would be wrong. It isn’t mere coincidence that Swamy pointed guns at Rajan just after being nominated to Rajya Sabha, Upper House of the Indian Parliament. Be it Rajan’s exit or those ‘stray’ incidents of communal sloganeering just before elections, it is but a systemic plan to demean an individual at respected position, attack personally when ‘force’ doesn’t work out, and make him say sayonara on his own. And then respectfully tweet, we respect your decision.

Arrange attack from a low profile but already controversial person from the party, get your army on social media and elsewhere spread that and more lies, let it run in the media, let people fight over things, let it all burn and act as if you are high on that white powder from Punjab – just let it happen but don’t react from the official position you hold because that might douse the flame too quick, before you have achieved what you set out to. This is the pattern for recent events, be it Hyderabad University, JNU, Malda, Kashmir and what not. Only in the case of Rajan, they knew it very well, no other ‘stray’ cannon will work well to rattle the cushions of central bank boss, they needed someone known for taking down the mighty – Swamy fitted just well. Discomfort between RBI and government are not unknown. Manmohan Singh and C Rangarajan, Yashwant Sinha and Bimal Jalan all had their differences and fought it out quite openly but what is new in Rajan’s case are personal attacks. There is less of intelligent arguments on his policies and more of attacks targeted at his individual self. ‘Not fully mentally Indian’, ‘he has green card’, ‘CIA agent’, ‘working for US’ are not statements criticizing policies. And these allegations couldn’t have been possible to enter prime-time debates had they not been from Swamy.

A good leader creates more leaders. But a bad leader? He seeks only blind support, unflinching ‘yes men’. Anyone who crosses his line, utters a word not in sync with his is shown the door. Film and Television Institute of India (FTII) which in the past has been served by prominent personalities like R K Laxman, Shyam Benegal, Mrinal Sen, Adoor Gopalkrishnan, Girish Karnad, Mahesh Bhatt etc. is made to be chaired by Gajendra Chauhan whose only claim to fame is playing a prominent role in mythological TV series on Hindu epic Mahabharata apart from C-grade movies which are best not talked about. Central Board of Film Certification (CBFC) is made to head by Pahlaj Nihalani who is more than happy to ask for cuts in movies for absurd reasons and made the infamous ‘censor board’ tag more apt than its original name. For the sake of mentioning, he did all those songs eulogizing Narendra Modi including that Har Har Modi song. Former Cricketer and 2 time BJP MP Chetan Chauhan was recently made the chief of National Institute of Fashion Technology (NIFT). The world has been asking his credentials for the post and man responded with, “They examined many names and ultimately chose me because I am an international sportsman and have experience in banking.” Okay, but what does that has to do with fashion technology? Only the ‘they’ in Chetan’s statement can answer that for us now. The only reason why Chauhan is ‘gifted’ appears to be how he batted for Jaitley’s innocence in DDCA scam case. Person by person, day by day, one institution after another are ‘fixed’ to have men who speak least of their mind and have credentials but speak the tongue of their supreme leader. ‘Yes man’ are the new breed Indian government is looking for.

Raghuram Rajan obviously was no yes-sir-guy. He spoke his mind whenever invited to. He feared none when he spoke, neither his masters nor the backlash his statements may invite. His speech which he gave at convocation ceremony of Indian Institute of Technology (IIT), New Delhi is a must for anyone to understand why he might have been signaled to pack his bags from the central bank. This was during the time when ‘intolerance’ debate in the country was at fever pitch. This regime’s dislike for the men who speak their own minds is quite known. Rajan was just the recent victim. RBI under Rajan fought the crony capitalists like none other time in the history and that general has just been taken down. What lies ahead for all of us is yet to be seen. Will next governor dare to take on the cronies? Time only will answer that. But this episode has brought what otherwise could have been played from indoors into wide public arena. “Rajan became a proxy for this government’s commitment to economic rationality. Rational economics was a fig leaf that helped obscure a darker politics; Rajan’s departure leaves the government (and, by implication, its supporters) a little more naked than before,” wrote Mukul Kesavan.

Rajan has been fighting this vicious battle with government since long now. Recently, the govt decided to make Rajan member of a panel that would decide his deputy. They made sure the panel was not headed by Rajan instead by a cabinet secretary. RBI governor unlike any other regulator enjoys a higher rank and this plan was to cut his power. It didn’t stop here. The govt went on to ask the same cabinet secretary led panel to shortlist candidates for next RBI governor. Now, Rajan to retain his post was supposed to give interview before this panel and fight his competitors to retain the post, or end up being rejected. This and many instances point how foul this jugalbandi between governor and government was. But Subramanian Swamy in particular had begun his campaign against Rajan way before BJP had formed its government at the centre. The question isn’t about the allegations Subramanian Swamy levelled and if they made Rajan catch the door but how Prime Minister Narendra Modi and Finance Minister Arun Jaitley kept their silence. They did not stood by RBI Governor and that says a lot. To say it was Swamy who hammered the final nail in Rajan’s coffin (of RBI stint) would be wrong. He only gave the ammunition. It was Modi and Jaitley who nailed it. They cannot hide from the fact pretending otherwise. In fact, that has been the case all along. Someone down throws the muck and those in top who can stop it from spreading just keep their mouth shut and let things be. And when all has settled down, the things have been worse and foul ‘goals’ have been achieved, those in power speak to appear saint which they never were in the first place. Just ask yourself this – If Modi government doesn’t own the statements made by Sadhvi Prachi and Yogi Adityanath, why don’t they expel them from the party, take action and distance themselves from this ‘embarrassing’ lot? Remember they are not any persons wearing saffron shouting foul words but people who BJP gave ticket to. You see it or not, this is a strategized plan which is working well so far for the government. And will continue till BJP starts preparing for next general elections for 2019.

Planning Commission which was founded by Jawaharlal Nehru to formulate long term plans was recently done away with. No doubt, planning commission didn’t served its purpose in the late years of Manmohan Singh government but that was no reason to dissolve it. It was setup to provide government a roadmap to work and achieve long-term goals. What institution today do we have that can critique government from their official position? Who is there to check if promises and advertisements this government makes are true or not? Are we to believe the ad-maker in the absence of any mechanism to check the long claims? Our media has already toed the line – ads have become reality for them. Certain Ravish Kumar of NDTV tried to fact-check ‘electricity in 1352 new villages of Uttar Pradesh’ but when found the claim fictitious and reported the same, PM Modi thundered in a rally how media is pointing small-small errors. Those who speak are moved and those who have no spine are made to lead us. We are a proud nation but how much proud? Are we not proud enough to speak our mind, to respect the opposition, to let independent bodies function independently? Or is being proud only confined to flying flags at 207 feet and having army symbols like tanks housed in education institutions to instill patriotism in students? Ours is a land which took pride in its debates, what happened to that tradition?

P.S. There is much talk on Rajan the economist. But we forget he is great with his words too. In fact, many believe this craft of his playing with words and speaking his mind at IIT Delhi cost him dear. Here’s the text of that speech. Do read. And comment your views if he was wrong to voice his opinions anywhere. Also, in case you are interested, read this fine blog on the comparison of Rajan and Stanley Fischer who both started their fight against crony capitalism in India and Israel respectively, and how it backfired them. You can also read Rajan’s last letter where he announced his end of tenure as RBI Guv and also listed his achievements which would silence any critic of his. Long may live the tradition of debate. Long may reign our freedom, to not just move freely but to speak and act too!

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