WEBVTT - Single Best Idea with Tom Keene: Raghuram Rajan

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>It is single Best Idea and a special edition of

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<v Speaker 2>Single Best Idea. I'll be honest, folks, we're making it

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<v Speaker 2>up as we go. Lengthy meetings. I mean the meetings

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<v Speaker 2>they go forever, four minutes, three minutes, seven minutes. What

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<v Speaker 2>are we going to do on single best Idea? We

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<v Speaker 2>are making it up as we go. And today we

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<v Speaker 2>have a special edition where we focus on one treasured

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<v Speaker 2>guest and he really delivered. He is Rogin Rogen of

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<v Speaker 2>the Bus School, Chicago. His book fault Lines is one

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<v Speaker 2>of the few books of the great financial Crisis is endured.

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<v Speaker 2>He is one of our great thinkers on community and

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<v Speaker 2>he has a new book coming out on his India.

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<v Speaker 2>He's a former head of the Central Bank of India.

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<v Speaker 2>A new book coming out, Breaking the Mold, which is

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<v Speaker 2>a primal scream towards a new India. And just as

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<v Speaker 2>a man, I'm speaking as a complete amateur. Thank you

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<v Speaker 2>to Lord Desaiath the London School of Economics for schooling me.

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<v Speaker 2>But basically there's North India which is modi emotional, conservative, political, religious,

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<v Speaker 2>and yes, all the same in South India over to

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<v Speaker 2>Sri Lanka, Ceylon, except that's where the technocratic elites are

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<v Speaker 2>and think of Sacha Adela coming out of Microsoft on there.

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<v Speaker 2>So we had a wonderful conversation which we would devote

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<v Speaker 2>entirely to today with Ragan Rajen of the Bust School, Chicago.

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<v Speaker 2>Here is the professor on the election, the stunning results

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<v Speaker 2>so far tempering a Modi certitude.

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<v Speaker 1>I think it's a splendid result because it tells the

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<v Speaker 1>government it needs to change course. The old course was unviable.

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<v Speaker 1>But I think what is happening today is really, in

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<v Speaker 1>the long run, really good for India because it forces

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<v Speaker 1>India to choose a different course from the one it

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<v Speaker 1>has been on, a course which has led to much

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<v Speaker 1>wider unemployment and distress than needed in the country. It's

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<v Speaker 1>actually a win for democracy and that's good for India

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<v Speaker 1>because what democracy does is it allows the different paths

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<v Speaker 1>to essentially express themselves and to negotiate. The problem earlier

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<v Speaker 1>was India was trending towards a more autocratic country, a

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<v Speaker 1>country with one leader who was who are a larger

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<v Speaker 1>than like image, and that unfortunately meant that the BJP

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<v Speaker 1>leadership wasn't listening, wasn't listening to the economic news on

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<v Speaker 1>the ground that people were actually suffering hardship. Wasn't listening

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<v Speaker 1>to the broader sense that the weaponization of various instruments

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<v Speaker 1>of the government to put you know, opposition party leaders

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<v Speaker 1>in jail was simply not jelling and it would have

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<v Speaker 1>taken India down a court which was ruinous in the

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<v Speaker 1>longer run. Maybe in the short term benefits to the big,

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<v Speaker 1>big business groups, and that's why the market is reacting adversely.

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<v Speaker 1>But I think this is good.

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<v Speaker 2>One of the great themes here has been and this

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<v Speaker 2>is from Professor Rogen and others as well on India,

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<v Speaker 2>and I thank Derek Wallbank for his commitment out of

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<v Speaker 2>Singapore driving all of our South Asia coverage at Bloomberg News.

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<v Speaker 2>Is the similarity the analog exercise of China is compared

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<v Speaker 2>and like India and all really push against this. And

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<v Speaker 2>so much of this is because of how demographically they

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<v Speaker 2>are so different. Whether it's the latitude above the equator,

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<v Speaker 2>whether it's climate change, whether it's the politics as Damian

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<v Speaker 2>Sasauer is talking about today on the northern border. But

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<v Speaker 2>so much of this is polygot India. Here ragu Rajin

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<v Speaker 2>on an India of twenty languages.

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<v Speaker 1>It's more than that. It's twenty official languages, which means

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<v Speaker 1>they have enough people speaking it, but there are six

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<v Speaker 1>hundred additional dialects and languages. It's a vast complicated country

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<v Speaker 1>and the only way it's unified is through democracy, because

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<v Speaker 1>democracy allows each community a voice. You talked about twenty

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<v Speaker 1>twenty six in India, that's when the parliamentary seats get reapportioned,

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<v Speaker 1>when there will be a move to have new seats

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<v Speaker 1>in parliament for the more populous areas. That has to

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<v Speaker 1>be done by consensus. And what I'm so glad about

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<v Speaker 1>is that it will be done by consensus because democracy

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<v Speaker 1>has re established itself in India and they will have

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<v Speaker 1>to negotiate how that reapportionment helps. So India is more

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<v Speaker 1>politically stable as a result of this election, is also

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<v Speaker 1>going to be a greater friend for the democracies of

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<v Speaker 1>the world.

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<v Speaker 2>And you wonder how the US should step out after

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<v Speaker 2>our election to rebuild and to enhance our relationship with India.

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<v Speaker 2>Sometimes we have to ask a delicate question and sometimes

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<v Speaker 2>we get a delicate answer. Ragarajin on public service to

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<v Speaker 2>the next Modi government.

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<v Speaker 1>Well, I think that's an unlikely prospect. You know, my

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<v Speaker 1>sort of inclination is whenever there's a government I can

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<v Speaker 1>agree with, I'm happy to work with them. I've always

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<v Speaker 1>been open with advice. Let's see what happens.

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<v Speaker 2>That was a short answer to say the least. But Raga,

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<v Speaker 2>thank you so much. Ragarajin there, and I just can

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<v Speaker 2>say in front, I full disclosure. I've seen a pdf

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<v Speaker 2>of the book coming out Princeton University Press. Ragaraja's next

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<v Speaker 2>effort is completely devoted to what his India needs to

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<v Speaker 2>do to prosper forward and decidedly on their own unique path,

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<v Speaker 2>not like China. We are out on Apple car play,

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<v Speaker 2>on Android as well on YouTube. I just can't say

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<v Speaker 2>enough about the informed live chat on YouTube. Subscribe to

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<v Speaker 2>Bloomberg Podcast search for Bloomberg Podcast there from New York

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<v Speaker 2>with this special edition an Apple Podcasts single Best Idea