Economic reforms

MONETARY AND FINANCIAL SECTOR REFORMS IN INDIA - A Central Banker's Perspective: Dr. Y. Venugopal Reddy; UBS Publishers and Distributors Ltd., 5, Ansari Road, New Delhi-110002. Rs. 395.

TO STATE that the book under review is an indispensable reading for many classes of readers, is to state just one of its several positive attributes. A collection of 23 recent speeches of one of India's most erudite economic thinkers, planners and writers, the book's only shortcoming might be, to repeat what another great economic writer, Mr. S. S. Tarapore, has said (in his review of the book), its not being large enough to accommodate some other speeches of the author.

Lectures these are, but neither the way they are reproduced nor their content mystify the readers which most writing on economics does. Mere theoretical dissertations, even if backed by a plethora of empirical analyses, are hardly illuminating by themselves, unless they are backed by practical wisdom. This in fact has been one of the main shortcomings of writing on this subject in this country.

The author has worn several hats after a brilliant academic career. Starting as a lecturer in economics, he has kept his fascination for the subject alive right through his distinguished career as a civilian. Joining the IAS in 1964, he has been Secretary, Banking, Government of India, and since September 1996 a Deputy Governor of the RBI. It is in the latter capacity that he has been called upon to deliver a large number of lectures on macroeconomics, especially with reference to monetary policies and financial sector reform. A combination of sound theoretical grasp and hands-on practical experience (in most cases) has enabled the author to deliver high quality speeches.

The book has been grouped subject-wise. There are five sections covering monetary policy issues, financial and banking sector, external sector, financial markets and finally fiscal issues. The author has covered highly topical issues under each of these. The topical nature considerably enhances the book's broad appeal. At another level, these speeches have been a kind of articulation - at the highest level - of the policy dilemmas in these areas. In many cases his vision - that is how one should call his speech on say gold policy - soon became official policy as well.

The introduction to the book is a kind of primer on recent economic history. Since each of the speeches was delivered on a particular occasion, Dr. Reddy has spelt out, again with great clarity, the contextual reference. That makes the speeches much more interesting as well as useful. It is not at all surprising that he has come to be regarded as one of the country's most important spokespersons on economic issues, especially on policy formulations - existing or proposed.

The book should interest students, teachers as well as lay people. Financial journalists owe a debt of gratitude to the author. On countless occasions - as this reviewer can testify - his speeches or writings have been the most adequate reference material and in many cases the only one. This neatly produced and attractively priced edition automatically recommends itself to the widest possible audience.

C.R.L. NARASIMHAN

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