{"id":3239,"date":"2019-11-01T23:00:42","date_gmt":"2019-11-01T17:30:42","guid":{"rendered":"https:\/\/ravi.rajiniravi.com\/blog\/?p=3239"},"modified":"2019-11-02T13:42:21","modified_gmt":"2019-11-02T08:12:21","slug":"15-key-takeaways-from-the-raghuram-rajan-lectures-that-are-relevant-any-sector","status":"publish","type":"post","link":"https:\/\/ravi.rajiniravi.com\/blog\/2019\/11\/15-key-takeaways-from-the-raghuram-rajan-lectures-that-are-relevant-any-sector\/","title":{"rendered":"15 key takeaways from the Raghuram Rajan lectures (that are relevant any sector)"},"content":{"rendered":"
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This note was first published on Linkedin Pulse<\/a>.<\/p>\n

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Raghuram Rajan delivered 2 brilliant lectures at the Watson institute \u2013 1) India\u2019s Economy: How Did We Get Here and What Can be Done?<\/a> and 2) India in the World: The \u201cVision\u201d Thing<\/a>.<\/p>\n

He put forth on a few points and arguments, which I thought made tremendous sense, in general, even stripped of the context of the Indian economic performance. I could definitely relate them to what I have seen and experienced over my career.<\/p>\n

Here are 15 key takeaways from these 2 lectures\u2026<\/p>\n

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  1. Steadily falling investment is the first reason for low growth.<\/li>\n
  2. Significant, continued reforms are necessary. They don\u2019t necessarily drive growth immediately, but create the future environment for strong growth.<\/li>\n
  3. For sustained growth, it is critical to keep new projects going. If the number of projects initiated are falling or a whole lot of old projects are stalled, slow growth will be inevitable.<\/li>\n
  4. You have to recognize the bad because, until you recognize it, you don\u2019t do anything about it.<\/li>\n
  5. Right timing is as critical as the right move.<\/li>\n
  6. Uncertainty in decision making, one could argue, also causes some fall in demand.<\/li>\n
  7. A bad way to run a firm is if you underpay at the top, because you don\u2019t get much talent to run the firm.<\/li>\n
  8. Extreme centralisation also puts considerable pressure on performance as the top leadership, even the most hardworking, has limited capacity<\/li>\n
  9. For centralised systems to work effectively, leadership needs to put out a \u201cconsistent, articulated and coherent vision\u201d. Else, everyone below is left guessing (uncertainty) and their follow through will be narrow. You can\u2019t have centralisation and no vision. And no, a series of programs doesn\u2019t mount to vision.<\/li>\n
  10. Neither extreme centralisation or extreme decentralisation is effective \u2013 a good operation needs an overall framework and decentralised decision making to succeed.<\/li>\n
  11. Ideas (brainwaves) cannot be implemented without testing. Broader thinking, rather than just at the top, is needed before implementation.<\/li>\n
  12. Focus should be on the broader achievement of a program\/vision rather than numerical targets around it.<\/li>\n
  13. People respect Indian leaders not because of the force of their personality and performance, but because they represent a 1.3 billion strong market that is growing fast.<\/li>\n
  14. Good innovation requires debate and free speech.<\/li>\n
  15. Stress \/ adversity is a terrible thing to waste. It offers opportunities for substantial change. Start with the stress sectors \u2013 there is no point offering stimulus at an overall level is stress sectors hold back growth.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    This note was first published on Linkedin Pulse. Raghuram Rajan delivered 2 brilliant lectures at the Watson institute \u2013 1) India\u2019s Economy: How Did We Get Here and What Can be Done? and 2) India in the World: The \u201cVision\u201d Thing. He put forth on a few points and arguments, which I thought made tremendous […]<\/p>\n","protected":false},"author":1,"featured_media":3979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"book_review_cover_url":"","book_review_title":"","book_review_series":"","book_review_author":"","book_review_genre":"","book_review_isbn":"","book_review_publisher":"","book_review_release_date":"","book_review_format":"","book_review_pages":"","book_review_source":"","book_review_rating":"","book_review_summary":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88],"tags":[],"class_list":["post-3239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"jetpack_featured_media_url":"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2021\/01\/photo-1547139559-c89c59d117611.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/comments?post=3239"}],"version-history":[{"count":1,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions"}],"predecessor-version":[{"id":3240,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions\/3240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media\/3979"}],"wp:attachment":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media?parent=3239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/categories?post=3239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/tags?post=3239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}