Former Reserve Bank governor Raghuram Rajan has said the countries that tried to fight coronavirus pandemic in a decentralised manner have done reasonably well as compared to others.
Citing the example of Germany and South Korea, Rajan said that these countries have allocated resources at the centre but left the details to provinces.
In case of India, he said, as a result of the nation-wide lockdown, which was imposed after four hours notice with effect from March 25, the regions which did not have coronavirus cases at that time suffered economically.
“I do want to point out difficulty of having decision taken at the centre, when the centre does not know what is happening in much of the country. Take for example,the Indian decision to essentially close down.
“…you soon found that some areas which did not had many coronavirus infections were actually suffering economically so the entire national lockdown had to be withdrawn perhaps too early in some place,” Rajan said in an interview with CoronaNomics.
CoronaNomics is a Youtube channel where the world’s top economic experts discuss how to tackle the economic impact of coronavirus.
He also pointed out that Mumbai and Delhi were at the centre of infections when nationwide lockdown was announced but some areas of northeast did not have many infections at the time.
Rajan, who is currently a Professor of Finance at The University of Chicago Booth School of Business, said what decentralisation does is, it allows locals to address the problem, while of course it is being helped by the central government.
The economist also said that in many Indian cities, one of the problems is the mayor in the city are largely disempowered, and because they are disempowered, the public services in the city tend to be neglected.
Replying to a query whether the Bank of England’s mandate should be changed from targeting inflation to targeting GDP growth, Rajan said the old problem of central bankers was how to keep inflation down.
“That was a problem in 70s, 80s and 90s. Unfortunately, the central banks have seemed to have succeeded in keeping inflation down.
“Now the problem is inflation is too low, how do we get it up is specially in a world with enormous debts contracted during the pandemic,” he noted.
He, however, said a little bit of inflation helps, and added that “My own preference is lets try and figure out what else we can do to elevate growth rather than relying on monetary policy magic”.
- India fighting COVID-19 strongly, strategy for vaccine distribution ready, says Govt; check details
- Trump campaign keeping at ‘full speed’ with 'Operation MAGA' as Trump fights COVID-19
- Tucker Carlson: Race, the COVID-19 vaccine and our betters' embrace of eugenics
- Gretchen Whitmer Takes A Shot At Other Governors Who ‘Haven’t Done Enough’ To Fight COVID-19
- Recapping 2020's COVID-19 Disinformation Pandemic
- Countries with Advanced Digital Skills and Safety Nets Doing Better in Pandemic, Report Says
- Nations Breaking Daily COVID-19 Records for Cases and Deaths
- 2020: When Indian scientists shifted focus to COVID-19 and made huge strides
- Uganda remains steadfast on refugees despite COVID-19
- 'We are getting crushed.' What's behind the alarming rise in California's Covid-19 cases
- Hyderabad set to emerge as global hub for COVID-19 vaccine in 2021
- Hyderabad set to emerge as global hub for Covid-19 vaccine in 2021
- Honoring warriors on the frontlines of COVID-19
- Rudy Giuliani admits he continued traveling to four states for election fraud hearings despite having COVID-19 symptoms as he shows off his lung capacity and claims he's back to '100% health'
- Bill and Melinda Gates Foundation pledges another $250million to fight COVID - as billionaire Microsoft co founder predicts 'we'll be headed back to normal by spring'
- ER doc and Brown researcher Megan Ranney on the surge of COVID-19
- The Hill's Morning Report - Presented by Mastercard - COVID-19 relief, omnibus talks go down to the wire
- Oxford-AstraZeneca's Covid-19 vaccine can be available in 1st half of next year
- Himansh Kohli tests negative for Covid-19, takes off to Mukteshwar for a ‘little breather’. See pics
- Diplomatic efforts affirm Vietnam’s position in international arena amid COVID-19
Countries fighting Covid-19 in decentralised manner doing better: Raghuram Rajan have 695 words, post on m.hindustantimes.com at July 24, 2020. This is cached page on Asean Breaking News. If you want remove this page, please contact us.