OT but necessary to reply :
somnath wrote:
Well, the credit for the reforms should go to two individuals, PVNR and MMS
The "credit" for "reforms" , if any, should go to Chandrashekhar and VP Singh.
The massive expenditure by the governments of Rajiv Gandhi, first under VP Singh (1984-87) and later SB Chauhan (1987-1989) left a huge deficit. The oil shock caused due to Iraq-Kuwait invasion increased the import bill. Add to this, the evacuation of Indians from the Gulf further weakened the economy. Chandrashekhar took his
katora to IMF for 2 Bn $ in credit.
The IMF agreed and imposed its conditions, which "humble" Chandrashekhar swallowed.
somnath wrote:
The Yashwant Sinha interim budget is a myth spread widest by Yashwant Sinha himself - as an irrelevant policy document (the vote on account is worth very little more than the salaries that it enables for the govt employees), any number of wishes could be inserted...The trick is in actual implementation..
Plain intellectual dishonesty .
The IMF "asked" Chandrashekhar to draft their clauses. Yashwant Sinha drafted the "interim budget" which contained terms of divestment and denationalisation. Rajiv Gandhi did his "act" and elections were called for in May 1991. The budget was defered and no aid was given.
I see that you have carefully implanted "vote on account" in the description.
There were NO LS elections scheduled in 1991. It was NOT "vote on account", but the actual budget. However the government was reduced to a minority in March, as a result, the budget postponed. Fresh elections were scheduled in May. After first phase got over on May 20, Rajiv Gandhi was assassinated at Sriperembudur on May 21. As a result the next 2 phases were postponed to June 12 and June 15. The 10th Lok Sabha commenced on July 10, 1991 with PVN Rao as PM and MMS as FM.
somnath wrote:
...PVNR for the political cover, and MMS for the intellectual inputs..
PVN Rao is out of scope for discussion.
MMS modified the draft and added devaluation of Rupee. In fact it is alleged that he was pushed to the fore by his backers at IMF as they were most comfortable with him and he got the budget draft from someplace else. So even his drafting
takleef was saved.
somnath wrote: Not just his paper to Rajiv Gandhi (which I wasnt aware of), but even his PhD thesis and later works have been quoted to burnish him as a socialist...
Manmohan Singh was "Secretary-General and Commissioner, South Commission August 1, 1987 to November 10, 1990". While At the South Commission, he criticised the approach of IMF in a book that he wrote....
somnath wrote:
I hold no brief for MMS, but intellectual honesty demands that one changes with time..As Keynes once told someone accusing him of changing his stance, "when data changes, I change my views, what do you do sir?"
"One changes with time" , but not so fast. Between his stint at South Commission and his
selection to Rajya Sabha to facilitate his backdoor entry as FM, he transformed from IMF policuy basher to one who accepted and implementd the changes in the name of "Liberalisation". All in a period of a few months...
somnath wrote:
You dont need nobel prize winners to be policy makers..You need people withy enough intellectual depth to grasp the issue at hand and enough "credibility" within the system to "work" it...MMS was the perfect choice then on both counts...
Intellectual depth is a very flexible depth. To share a point of Manmohan's Singh "strength" to make independent changes, Chandrashekhar and Sinha suggested him to present the 92 budget at 11 AM. We used to present the budget at 5:30 PM if you remeber, a gift of the British legacy. Apparently it is 12 PM in Britpakistan when the budget was presented in India, a convenient time for them to follow it. Manmohan Singh "humbly" rejected the proposal. For all his "strength" and a written draft, he couldnot change the time. It took six more years for Yashwant Sinha to change the time. Just an example to show the "independent" decision making ability of the person in question.
somnath wrote: In fact PVNR's first choice was not MMS, but fellow Hyderabadi (ooops, forgot the name)..But in the end, MMS delivered, thats what matters..
It was his second budget in 1992 March. Again he continued the same path. IF you recall, MMS for all his position as a RBI head could not figure out the beginnings of the massive scam at the BSE. In fact he is accused of wilful neglect. Howrever, the dealings of his party, the Big Bull and the industrialists of this time is beyond this thread.
somnath wrote:
He is no Milton Friedman, or even Amartya Sen, or for that matter even Kaushik Basu (my bet for the next economics Nobel from India!

)...But then, Myron Scholes developed the bellwether options pricing model (Black Scholes) - the quant fin company he founded went bankrupt (LTCM)!!!
Pious words does not a person make. Repeat a lie two hundred times and the "truth" is twice shiny. Sixty days of term 2 have passed, not to speak of the hundred day terror program. The way things are going seems to be a race to the bottom in the first hundred days itself. Anyway, we have his history of the past five years to judge him. And four years 10 months (
Hey Ram ! ) to go. So best of luck at judging history if we are not history.