NEW DELHI, Nov 7: The Reserve Bank of India's governor-designate Bimal Jalan is an economist who firmly believes in market reforms. His books India's Economic Crisis: The Way Ahead, published in 1991; The Indian Economy: Problems and Prospects, published in 1993 and his new work India's Economic Policy: Preparing for the Twenty-first Century which was published last year are all strongly crtical of India's muddling with a mixed economy.Nehruvian mantras as state intervention, import substitution, industrial licensing, commanding heights of the economy for the public sector come up for crticism. The economic management of the country is held up to the light to expose all the holes.Jalan's thesis delieneates that a break from the past on almost all left off-centre economic issues is required to put the economy back on the rails.The draft paper for the ninth plan which was prepared by Jalan has his distinctive stamp. He does not present an apologetic concoction for stirring up the economy. His targets for the ninth plan period of 1997-2002 are a seven per cent average growth rate of GDP, a 26.2 per cent savings rate, an investment rate of 28.6, a current account deficit of 2.4 per cent and a 4.08 per cent incremental capital-output ratio.Jalan is a firm believer in a grass roots approach to tackle problems of poverty alleviation. Focused result-oriented state intervention has been Jalan's mantra as member secretary in the Planning Commission. This, economists say, is going to be his guiding principle in the RBI.Over a period of five years the government has completely dismantled the government-controlled regime. The RBI is now preparing for a new period in economic management where it will manage and intervene in less obtrusive ways.As a believer in the supremacy of the market, Jalan is considered suitable to be at the helm of affairs at the RBI as a different kind of management is now required where the RBI will have to intervene in the currency market less obtrusively and police the country's financial system with greater firmness but with gloved hands.
