I Dispute RSS's Organisational Aim

Raghuram Rajan says he has no interest in entering poli-tics, but his latest book, The Third Pillar: How Markets and the State Leave the Community Behind, is as political as it can get.

- Vijaya Pushkarna

The highly readable book, published by HarperCollins, is more than economics—it is about people and how their lives are impacted as governments and markets grow strong, and how technology can be both villain and hero. While references to political parties are made just in passing, the ideological discussion is in great breadth and depth, and it makes no secret of what in his view is good for the economy and society.

The Katherine Dusak Miller Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago, Rajan seems a totally political being with an ideology on the table. And the timing of the book launch is also interesting, as India is preparing to vote for the Lok Sabha. Rajan has been doing television interviews and presentations to packed halls. And his unambiguity and logic have definitely rattled the right wing in India. He says he has an open mind when it comes to public service, but draws a clear distinction between politics and public service. Excerpts from an interview:

“Populist nationalism will undermine the liberal market democratic system that has brought developed countries the prosperity they enjoy.” Can we illustrate or estimate the damage on account of this?

In the book I talk about populism as having healthy elements to it because it raises the right questions. Populism is often the revolt against the elite. It is saying we the people think you are not doing enough for us. Because it raises the right questions, I think there is an element of value to those kinds of movements.

My worry is they sometimes take the wrong direction, and are often supported by people who are very disgusted with the existing system because they feel the elite support the immigrants, they support too many minorities, they are not really looking after the majority community. That is what populist nationalists do.