Rexit ! Raghuram Rajan, India's icon who tripped
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Raghuram Rajan, India’s icon who tripped
By Sugata Ghosh, ET Bureau
As the markets grapple with imponderables and New Delhi hunts for a credible face, to many, Rajan’s missive would come across as less than funny — even somewhat irresponsible, given its timing.
NEW DELHI: Raghuram Rajan had once said that he would like to carry back to classroom what he learnt in the world outside the campus. In September, when he heads back to Chicago — the mecca of many hard-nosed economists — he would carry with him lessons on just not monetary policy but also ones he picked from the unforgiving world of realpolitik. For the `rock star’ central banker, the autumn of 2016 could well be one of rumination. His announcement to quit is as dramatic as was his entry three years ago: no RBI governor had ever done an impromptu presser to rein in the rupee hours after assuming office; no governor in the history of the bank signed a media release to announce his exit. Rajan’s sense of drama is unmistakable.
Less than a week before the referendum on Brexit — a known unknown across financial markets — Rajan’s letter, replete with veiled hints that NEW DELHI wasn’t particularly keen to hold him back, could unnerve traders on Monday. A fortnight ago the governor had said it would be cruel of him to spoil the fun that media was having while speculating about his appointment. As the markets grapple with imponderables and New DELHI hunts for a credible face, to many, Rajan’s missive would come across as less than funny — even somewhat irresponsible, given its timing.
Rajan did what any self-respecting person would have done. The Governor saw the writing on the wall when he was left with little say in selection of his deputies and when New Delhi remained silent and a senior minister gave a guarded statement even as an unrestraint lawmaker — a gun for hire – relentlessly spew venom.
This is why Rajan would be fondly remembered by his admirers though the Governor has had his share of failures and was certainly not the best man to have occupied the 18th floor office of the Mint Street tower. But his visible earnestness, brilliant one-liners and forthcoming demeanour often masked the foibles of the central bank. His critics, though far outnumbered by his supporters – who attacked the government and twitted their resentment on Saturday – have had their points. Rajan’s monetary policy was flawed as he kept money markets gasping for liquidity while lowering interest rates – a style that never allowed free transmission of rate cuts through the banking system; it was only in the third year of his job that Rajan changed tack, but perhaps, it was too late by then; his drive to clean up banks – though unanimously accepted as the need of the hour – was pushed through in a way that left large high-street banks running for cover; and some of the companies which once rushed to bag license for running payment bank – widely perceived as one of Rajan’s smartest measures to spread financial inclusion – have returned the license.
But such criticism, though valid, was lost as it was aired by businessmen and politicians who lacked integrity: debt-laden promoters, wilful defaulters and politicians, some of whom known for their proximity to business groups. Thus, to Rajan’s votaries, his sudden decision to discontinue would go down as a defeat in the hands of India’s crony capitalists. When tainted men, attack a person of immaculate pedigree the vanquished (despite his flaws) ends up as the victor. If Rajan was overhasty and unwonted in putting his quit-notice in public domain, the government’s inept handling of the situation and displaying its dislike for the governor was curiously amateurish.
Rajan, few may notice, would leave behind an RBI where the role of the Governor – particularly as far as monetary policy goes – has diminished: the policy would now be decided by a committee with the Governor (even if considered as first among equals) having a casting vote. The larger job for the next governor is banking reforms.
Rajan’s decision would make markets choppy but it would be simplistic to fear that it would make the rupee a runaway currency and drive foreign portfolio managers out of equities and debts. RBI is an institution and even if there is a kneejerk sell off in stocks, there is little to believe that overseas fund managers are any different from Dalal Street punters who will go long when the government is stable, growth is good and reforms are visible. Outcome of state polls and macro numbers – rather than the choice of Governor – would influence markets in future.
With Rajan’s letter dominating the social media, New Delhi has the unenviable task of choosing the next Governor. Weekend speculations have thrown up names like SBI chief Arundhati Bhattacharya, former cag head Vinod Rai, chief economic advisor Arvind Subramanian, deputy governor Urjit Patel and former DG Subir Gokaran as possible successor to Rajan. Perhaps, the PMO has already made up its mind. But till now and across disparate governments, the appointment of RBI governor has been the only decision that has been least influenced by the byzantine intrigue of Delhi, its formidable club of babus, and the pressures of large business groups. It would be a pity if that changes.
Raghu Ram Rajan is gud., but he is not THE BEST as what media says., The best RBI Governor India had upto now is YV Reddy
Raghuram Rajan shielded Indian banks from a Lehman-like crisis. And how!
http://economictimes.indiatimes.com/markets/sto...
Rexit: Raghuram Rajan’s letter to RBI staff
http://economictimes.indiatimes.com/news/econom...
Uncompromisingly Rajan: Ability to say no and to live happily with consequences makes him unique
Reappointment of Raghuram Rajan as RBI governor would have transformed this stroke of luck into a tangible sign of change
WRITTEN BY LUIGI ZINGALES |
Raghuram Rajan has announced that he will return to the University of Chicago Booth School of Business at the end of his mandate as RBI governor in September. In his announcement letter, he declared himself an academic at heart, but he does not state that he is unavailable for a second mandate. Thus, it looks very much like a polite way to relieve Prime Minister Narendra Modi from the responsibility of reappointing him. It is certainly in Rajan’s style to bow out gracefully to help others save face.
Many commentators have minimised the impact of this decision by saying there are many capable people in India, people as capable as Rajan. In a country with 1.2 billion people, it’s impossible that there are not many people of similar calibre as Rajan. Yet, what makes Rajan unique is not just his IQ, his excellent training, or his impressive CV. What makes him unique is a combination of wisdom, sound principles, and integrity, not to mention his superstar academic status that shields him from the worst consequences that loyalty to these principles generally produces.
Many smart people tend to be fascinated by their own cleverness and fall in love with some form of centralised planning, which maximises their control. Rajan, instead, had the wisdom not to make this mistake. He strongly believes in the power of decentralised markets, while at the same time, not being a free-market ideologue. He is not afraid to point out when markets fail, as he did before the then Federal Reserve chairman, Alan Greenspan. Most importantly, he is not afraid to identify when the rich and the powerful are distorting the rules of the market to their own advantage.
These characteristics make him rare. What makes him even rarer is that he is not for sale. When they are not seduced by socialist principles, smart people tend to put themselves at the service of the rich and powerful. After all, that is where the money is. Rajan is not one of those. His main goal has been to improve the living conditions in his country. In pursuit of this goal, he is not afraid to challenge powerful interests, as he has done during his tenure as the RBI governor — a challenge that most likely cost him his job.
It is rare — not just in India but everywhere — that people with Rajan’s wisdom, principles, and integrity reach the top. To progress in their careers, most politicians and public servants are forced to compromise. If they do not, they are condemned to the gulag of irrelevance. Rajan is different. He gained his prestige in the highly competitive American academic market. And now his academic superstar status allows him to say no to anybody he wants to and to live happily with the consequences.
I suspect this is also the real reason why he has been so vehemently attacked by the local politicians. He was accused of being “mentally not fully Indian” because he holds an American working permit, or in other words, an outside option. Most people in power choose nominees without any outside option because such people are willing to do anything to be reappointed. Rajan is not one of those and, represents a threat to the status quo. What will happen to the old patronage system if people are appointed based on their qualities, not their connections? What will happen if they are reappointed for their performance, not their loyalty?
India was very lucky to have a person of Rajan’s calibre and integrity in such an important position. A reappointment would have transformed this stroke of luck into a tangible sign of change. Most importantly, it would have sent a powerful signal that an RBI governor could uphold his principles and keep his job. It is a huge missed opportunity.
The writer is professor, University of Chicago Booth School of Business.
R^3 ( raghu ram Rajan) the Shariputra
Ravishankar Mantha
Promoter at Agrisk Data analytics & Agrisk Research Technology
During the time of Buddha there was a monk named “ Shariputra”, who was foremost in learning amongst all the disciples of the Buddha, was almost at par with Buddha himself.
One day, while he was in the streets , a Beggar came across to him and asked if he would give alms. Being superior in learning and knowledge, and as he considered himself most generous he thought off course he can give whatever it takes. The beggar asked him his right eye, Shariputra without blinking his eye pulled out his eye and handed it over to the beggar. The beggar threw the eye in the mud stomped it , as the scene was unfolded, Shariputra lost all his cool. All his knowledge, his learning were overtaken by the momentary anger and rage. He started to run behind the beggar trying to catch hold of him and beat the hell out of him.
The Rock star central banker, whose famous statement “ I am Raghuram Rajan I do what I do”, says a lot. Debates on his policy and perspective towards running the economy can and will and should continue as it happens in a healthy democracy. Issues between the central banker and the government is akin to the “ saas Bhau” relationship, something which ekta Kapoor has portrayed in a better way and become a billionaire.
Praise, Criticism ,Opinion and obituary’s are part of the ritual which any policy maker has to undergo: be it the BDO @ the Panchayat or the PM at the top , its part of the KRA, not a surprise element. It always is and will be, no matter what. However, the pertinent thing is how each of the 3 are responded to, that’s where the difference between knowledge and wisdom stands up.
As the country stands today, the biggest so called challenge apart from other is the Brexit. Theoretically it can create ripples. However markets are smarter and have discounted a lot of the news already and build into the prices across the asset classes. Sometime back we had the entire jingoism about the Feds quantitative easing (QE), the world market did not collapse nor did any country fold up. Things went smooth. Markets are smarter, un-prejudiced very practical and behave in the most appropriate way most of the times!!!.
Further, given the wonderful positioning of the country on various aspects, with rapid change in the perception about our policies, we surely are the sweet spot in todays world.
Off-course every professional undergoes professional menopause where everything seems against you, (am sure the women who go thru this process (menopause) have better mental ability to handle this). So given the critical position in which R3 is , what baffles is the timing. Knowing fully well that it can create ripples across the entire financial system, given the standing and respect that he carries. As every word, thought and deed is dissected into multiple points and debated endlessly increasing TRP’s.
Given the economic conditions, global factors and surely the domestic issues, the mechanism should have been more matured. It just looks like, hitting hard where it hurts most. If there was time till September, than wondering why the hurry to make this global point today, the logic surely does not fit in .The intellect surely is overruled by the Knowledge not the wisdom. Just the way Shariputra, the foremost started to beat the beggar.
That’s why the Buddha said in the final teachings of his, Lotus Sutra “ it is not the wisdom of the Buddha which is difficult to understand but what is difficult to climb is the mountain of ignorance”. Am sure as a country and market, we have enough wisdom to over comes such Irrational exuberances over many time.!! Happy Teaching R^3.
@Lega©y @gambitrite @highfi @marketdimer @mdeal001 @Navneet @Navaneesh
ARNAB: Mr Prime Minister what is your view about the controversy around the exit of Raghuram Rajan as the RBI Governor? A lot has been spoken about this. There was commentary that it may effect India’s image, perception as a global economy. What’s your own view of the controversy around the exit of Raghuram Rajan?
PM MODI: When my Government was formed in May 2014, you take newspapers from May, June, July 2014 and check television debates during that period. The topic of the television debates would be – Will the new govt let Raghuram Rajan continue? Or Will the new Government oust Raghuram Rajan? And there was more or less consensus that he was appointed by the previous govt and so Modi won’t let him complete his tenure and will remove him. You have seen, that he worked his entire tenure. For the time he was appointed by the previous government, he completing his entire term. So all the misconceptions have been dispelled. Secondly, according to my 2 year experience in Govt, those who are creating controversies, are being unjust to Raghuram Rajan.
ARNAB: Why so?
PM MODI: I will tell you. Those who say…I believe Raghuram Rajan’s patriotism is no less than any of ours. It will be doing injustice to him if one says that he will serve the country only if he is at a particular post. As much as I know Raghuram Rajan, whatever post he holds, wherever he is, he is someone who will continue to serve the country. He is someone who loves his country. Therefore, it’s not like the nation won’t get Raghuram Rajan’s services, Raghuram Rajan is not that kind of a person. He is a person who loves the country. Those who speak such language are doing great injustice to him. My experience with him has been good.I appreciate the work he has done. And my good wishes will always be with him.
ARNAB: Prime Minister Modi, there’s a question related to this. During your speech at the Executive you used seven words begining with letter ‘S’— ‘Sevabhaav’ (service), ‘Santulan’ (balance), ‘Sanyam’ (restraint), ‘Samvaad’ (dialogue), ‘Samanvay’ (coordination), ‘Sakaratmak’ (positivity) and ‘Samvedna’ (sensitivity). I will ask the question in context with Raghuram Rajan because you used these words in the speech at National Executive Meet speech on June 14 in Allahabad. You said, ‘Our party leaders and party workers should use these qualities in their daily dealings and behaviour.’ Prime Minister, in Raghuram Rajan’s context, your Rajya Sabha MP has made many comments. Later he made critical remarks against senior bureaucrats. My question is, do you think it is right? When we talk about ‘Sanyam’ (restraint) and ‘Santulan’ (balance), is it correct?
PM MODI: Whether it is someone from my party or not, I believe that such things are inappropriate. The nation won’t benefit from such publicity stunts. One should be more responsible while conducting themselves. Anyone who believes he is bigger than the system is wrong.
ARNAB: That’s a very clear message.
PM MODI: I have a very clear message. I have no two minds about it.
Profile Vs. Performance: Raghuram Rajan, Gajendra Chauhan And 3 Military Generals
The Mahabharata is one of the greatest epics from ancient India, and when this text was adapted into a TV series in the late 1980s, the role of Yudhisthira (the eldest among the Pandavas) was played by Gajendra Chauhan. The actor then slipped into relative obscurity, until last year, when the NDA government appointed him as the chairperson of the Film and Television Institute of India (FTII), sparking protests by students at the institute and major controversy outside the campus. If you see the common thread in most of the criticism directed against Mr. Chauhan, it was that he was a “lightweight” candidate. There were barely any comments on his administration abilities, but plenty was said about him not being a leading light of Indian cinema. Regardless of whether his appointment was right or wrong, it seems a bit unfair to use evaluation parameters which may not be fully relevant. History is replete with examples of high-profile guys failing and low-profile ones succeeding. Remember a certain P V Narasimha Rao in 1991?
History is replete with examples of high-profile guys failing and low-profile ones succeeding. Remember a certain P V Narasimha Rao in 1991?
Among the towering figures from the Second World War, three generals always had a very special place in the chronicles of military history — Field Marshal Bernard Montgomery (Monty) of Britain, Erwin Rommel of Germany and George S Patton of USA. Certainly, Rommel had a “larger than life” profile and he was seen as a hero not just in Germany but among the soldiers of the allied forces too. Patton was the most flamboyant and also an instinctive leader of soldiers… but if you do a very cold analysis, Monty was no less effective; in fact, it may even be argued that he was the most effective of the three. Yet, as history shows us, the generations that came afterwards always held a greater fascination for Rommel or Patton than for Monty. It is a reality that some people get more credit and appreciation for the same kind of work than many others who may not be so lucky.
Now, to come to Mr. Raghuram Rajan. A lot has been written about his departure, and you can only be surprised at how this rather boring job (RBI governor) has generated so much interest among the public and in the media. Many people are upset that he didn’t get a second term because he did a very good job overall. Also, his legacy is much more important from the standpoint of his efforts in addressing the NPA issues Indian Banks are facing, though his performance on currency stability and inflation control was also above par. However, despite whatever people say, I don’t really think that the government interfered in his job and didn’t allow him to function independently. At times, he took a stand which was not liked by the powers that be but the responsible functionaries in the government accepted those decisions of Mr Rajan with grace. However, the reaction to his views on general issues was mixed. Not all would agree, but Rajan breached his brief when he talked about issues like intolerance and other politically sensitive subjects.
The RBI as an institution is much larger than an individual.
While he had a right to express his opinions, the fact is he was not an expert on those matters and his view was formed more by what the media highlights rather than a deep and direct understanding of ground reality. He simply should not have done that. It is also possible that he didn’t really want a second term. Otherwise, he would have been more careful with his words. Why do I say this? He did a great job but he may not have done better in his second term and perhaps he wanted to leave on a high (many second-term performances have been remarkably less stellar – for example, Indira Gandhi, Manmohan Singh, many US presidents). Also, another possibility is that he was not sure if he would be given another term and thought that it is better to sign off than to wait for a government decision.
No doubt, Rajan did a great job but many of our earlier RBI governors were no puppets. They may have had a much lower public profile than Rajan, who had rock-star status. But, they didn’t simply toe the government line always. Again, my assessment is that Rajan did great but it is also true that his profile was much larger than his work — in direct contrast to earlier RBI governors. So, I am not excessively worried. Yes, the RBI governor is a political appointment but as long as the next person is reasonably capable, I think that all will be fine. The RBI as an institution is much larger than an individual. It’s true that individuals together constitute the core of an institution, but great institutions shouldn’t rely completely on one person. They should continue to function properly and correctly under a new leader, unless that person is a complete disaster. Let’s hope that the government is not too adventurous with this posting at least.
An article by Julius Riberio ………
Lineage shows…👇
Disarmed by Rajan
Julio Ribeiro |
Posted :June 24, 2016 12:02 amSurviving officers of the 1953 batch of the Indian Police Service consider Raghuram Rajan as one of their own. When he was appointed governor of the Reserve Bank, we were overjoyed. When he appeared on television to explain his decisions, we listened intently. When his integrity was questioned by the BJP MP Subramanian Swamy, we were aghast. When he decided to quit, sensing the mood of the government, we were one with him. We were proud of the sober and dignified manner in which he handled such a delicate, though murky, situation.
Raghuram Rajan is the son of our batchmate Govind Rajan, who was the “topper” in our batch of 37 officers. The IAS officer who stood first in their ’53 batch was way behind him and also behind another batchmate of ours, Anand Kumar Verma, in the rankings of the IPS, that year. These two batchmates of ours appeared for the competitive exams at the age of 20, a year short of the permissible age limit for entry to the IAS. In those days, you were not permitted to reappear and compete for the IAS once you joined the Police Service, a rule that has been modified now.
Raghuram’s father was earmarked for the Intelligence Bureau, the police unit that appropriates the cream. He retired as chairman of the Joint Intelligence Committee, a job that has now been subsumed into the office of the National Security Advisor (NSA). IPS officers like M.K. Narayanan, two years our junior, and the present NSA, Ajit Doval, a decade or more behind, have done the service proud. I am mentioning this because the public perception is that police officers, even at the top of the hierarchy, have been chosen for their brawn. It is a common misconception, one that I, for one, have become accustomed to hearing.
I will not criticise the government for replacing Raghuram. He obviously did not suit their political philosophy, notwithstanding the fact that he is an universally-acclaimed economist with impeccable credentials. I am also not going to dwell on his achievements of stabilising the rupee and addressing the problem of inflation by methods that may not have exactly fitted into the present government’s philosophy.
What I do wish to emphasise though is that he was the first governor of the Reserve Bank to come out openly to explain his decisions to the general public in disarming and frank expositions on television. People want their representatives and officials at the highest levels to be open and truthful about what they do or do not do. They want to be informed because this is the age of information. Keeping reasons for decisions close to one’s chest may suit those who love power (since information is power), but an empowered populace desires otherwise. Hence, I salute Rajan for his willingness to speak out openly, sensibly and truthfully. His credibility was extremely high and that is what matters ultimately.
When the government decided to appoint a search committee, headed by the cabinet secretary, to list candidates for deputy governor, I sensed that a message was being sent to Rajan that he was no longer wanted. The governor of the RBI used to make these choices himself or with the help of his immediate colleagues. The government’s intent was clear. It wanted to show him who was boss. On the other hand, in the case of the SEBI chief, an extension was given after scrapping the prescribed search committee. The distinction being made in the case of Rajan would not be acceptable to any person of his stature and standing. It would hurt his self-respect. I am glad he took the decision he did and, in fact, I anticipated it.
Rajan was accused by Subramanian Swamy of being “anti-national”. Since most people I know do not believe most of Swamy’s utterances, Rajan should be advised to pay no heed to such risible slander. What hurts me, though, is that Swamy, who I have never met, is married to the niece of another very dear friend of mine of yesteryears, Sardar Dastur Hormazdiyar, who was high priest of the Parsis in Pune when I headed that city’s police for a year in 1964. Homi was very proud of this nephew by marriage because, as he confided, Swamy possessed a brilliant mind and expected to become the prime minister of India some day! His niece, herself the daughter of an ICS officer, met Swamy in the US when they were students at Harvard. Their civil marriage was solemnised by a Chinese-American magistrate. Swamy was not averse to the Chinese or to non-Hindus in those days!
I felt personally aggrieved that my dear friend’s nephew by marriage should have been chosen as the hatchet man of the government to get rid of the son of another dear friend.
The writer, a retired IPS officer, was Mumbai police commissioner, DGP Gujarat and DGP Punjab.
@B@R_0_0_D wrote:
Profile Vs. Performance: Raghuram Rajan, Gajendra Chauhan And 3 Military Generals
The Mahabharata is one of the greatest epics from ancient India, and when this text was adapted into a TV series in the late 1980s, the role of Yudhisthira (the eldest among the Pandavas) was played by Gajendra Chauhan. The actor then slipped into relative obscurity, until last year, when the NDA government appointed him as the chairperson of the Film and Television Institute of India (FTII), sparking protests by students at the institute and major controversy outside the campus. If you see the common thread in most of the criticism directed against Mr. Chauhan, it was that he was a “lightweight” candidate. There were barely any comments on his administration abilities, but plenty was said about him not being a leading light of Indian cinema. Regardless of whether his appointment was right or wrong, it seems a bit unfair to use evaluation parameters which may not be fully relevant. History is replete with examples of high-profile guys failing and low-profile ones succeeding. Remember a certain P V Narasimha Rao in 1991?
History is replete with examples of high-profile guys failing and low-profile ones succeeding. Remember a certain P V Narasimha Rao in 1991?
Among the towering figures from the Second World War, three generals always had a very special place in the chronicles of military history — Field Marshal Bernard Montgomery (Monty) of Britain, Erwin Rommel of Germany and George S Patton of USA. Certainly, Rommel had a “larger than life” profile and he was seen as a hero not just in Germany but among the soldiers of the allied forces too. Patton was the most flamboyant and also an instinctive leader of soldiers… but if you do a very cold analysis, Monty was no less effective; in fact, it may even be argued that he was the most effective of the three. Yet, as history shows us, the generations that came afterwards always held a greater fascination for Rommel or Patton than for Monty. It is a reality that some people get more credit and appreciation for the same kind of work than many others who may not be so lucky.
Now, to come to Mr. Raghuram Rajan. A lot has been written about his departure, and you can only be surprised at how this rather boring job (RBI governor) has generated so much interest among the public and in the media. Many people are upset that he didn’t get a second term because he did a very good job overall. Also, his legacy is much more important from the standpoint of his efforts in addressing the NPA issues Indian Banks are facing, though his performance on currency stability and inflation control was also above par. However, despite whatever people say, I don’t really think that the government interfered in his job and didn’t allow him to function independently. At times, he took a stand which was not liked by the powers that be but the responsible functionaries in the government accepted those decisions of Mr Rajan with grace. However, the reaction to his views on general issues was mixed. Not all would agree, but Rajan breached his brief when he talked about issues like intolerance and other politically sensitive subjects.
The RBI as an institution is much larger than an individual.
While he had a right to express his opinions, the fact is he was not an expert on those matters and his view was formed more by what the media highlights rather than a deep and direct understanding of ground reality. He simply should not have done that. It is also possible that he didn’t really want a second term. Otherwise, he would have been more careful with his words. Why do I say this? He did a great job but he may not have done better in his second term and perhaps he wanted to leave on a high (many second-term performances have been remarkably less stellar – for example, Indira Gandhi, Manmohan Singh, many US presidents). Also, another possibility is that he was not sure if he would be given another term and thought that it is better to sign off than to wait for a government decision.No doubt, Rajan did a great job but many of our earlier RBI governors were no puppets. They may have had a much lower public profile than Rajan, who had rock-star status. But, they didn’t simply toe the government line always. Again, my assessment is that Rajan did great but it is also true that his profile was much larger than his work — in direct contrast to earlier RBI governors. So, I am not excessively worried. Yes, the RBI governor is a political appointment but as long as the next person is reasonably capable, I think that all will be fine. The RBI as an institution is much larger than an individual. It’s true that individuals together constitute the core of an institution, but great institutions shouldn’t rely completely on one person. They should continue to function properly and correctly under a new leader, unless that person is a complete disaster. Let’s hope that the government is not too adventurous with this posting at least.
So this is the person who authored the article http://www.huffingtonpost.in/pankaj-s...a/ 
And the article was posted here on HP (Times India group) http://www.huffingtonpost.in/pankaj-sharma/yudh...
While he had a right to express his opinions, the fact is he was not an expert on those matters
So Is Swamy an expert to comment on RBI governor’s performance, whether he is anti national or not ???
He did a great job but he may not have done better in his second term and perhaps he wanted to leave on a high (many second-term performances have been remarkably less stellar – for example, Indira Gandhi, Manmohan Singh, many US presidents).
So he directly hints us that BJP would not be performing as good as their first term & we should not vote them again in 2019 
http://www.livemint.com/Opinion/0abda2Mb8Pc9lEz...
Why Raghuram Rajan bowed out
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Raghuram Rajan Bids Adieu. No Country For Good Men
Raghuram Rajan will not be either getting another term or will not be accepting another term as RBI Governor. India will have to get a new RBI Governor from September 4 when Rajan will return to Chicago University to resume as a tenured professor in the University of Chicago’s vaunted economics department. India’s loss will be Chicago’s gain.
It will be difficult to replace him with another person of acumen, personality, experience, accomplishment and world stature. Most of our previous RBI Governors were mere flunkeys who let the nation’s banking and financial system drift towards the abyss. Rajan red flagged the NPA’s and the capital inadequacies of the PSU banks, and began moves to set things in order.
I can be sure that there would be much relief spreading through many of our corporate headquarters, most of all of many corporate chieftains who are in the Prime Minister’s Councils of Advisors on the Economy, Infrastructure etc.
I am also sure there will be much relief in the upper echelons of our state owned banks, where many actively took part in the malfeasance that left the banks deep in the red. Many of these people owe their positions to the crony capitalists who greased the palms of the powers that be to position their soon to be benefactors in positions of authority.
So there will be rejoicing among many in the upper echelons of the CII, FICCI and Assocham, and the 14 state owned banks. Investments made and promises made will now be kept.
During my recent travels abroad addressing groups of economists and industry leaders interested in India, almost the first statement one heard was one hoping Rajan would stay.
We will no doubt get another RBI Governor, like we got a Pahlaj Nihalani at the Censor Board or Chetan Chauhan at NIFT and Ram Bahadur Rai at IGNCA. Maybe one who finds the approval of Subramaniam Swamy and his mentor Chandra Swamy. While we are at it, why not Dr. Swamy as RBI Governor? He has the qualifications and the acumen required to do the job.
This noise and dust kicked by the likes of Swamy and others only goes on to prove that India is no place for good people. Its good for only the Swamys of the world.
– Mohan Guruswamy , Head of Centre for Policy Alternatives, New Delhi
The Logical Indian’s Take
In a message to RBI staff, Raghuram Rajan announced that he would not be taking up the second term. He mentioned, “While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016. I will, of course, always be available to serve my country when needed.”
Above statement makes clear that Raghuram Rajan’s decision was not just his own. Raghuram Rajan will be the second RBI governor since 1985 and first since 1992 who is pushed out in only one term. In our country, we have seen that those who want to do good for the country are either killed or removed. This is a sort of tradition and there is no safety net for the people who are committed to their work and don’t follow what the corrupts do. That is why with time we see that people in position and who determine the fate of our country are found in corrupt activities.
Appointed by the UPA, Rajan didn’t hesitate to criticise Congress’s policies. Smoothly transitioning into the Modi administration, Rajan regularly met with the Prime Minister to discuss the national economy. Rajan’s appeal crossed party lines – but he made his share of enemies. Recent revelations from the “Essar Tapes” also show how Ambanis bought the Parliament and got policy according to their will. Raghuram Rajan for the first time removed the veil and laid bare the name of the crony capitalists, who owe 6 Lakh crores to the bank. His ouster indicates that crony capitalists weren’t happy with him.
We are eagerly waiting for “achhe din” and wish best of luck to future RBI governor hoping that he/she will be able to do what Raghuram Rajan failed to do.