New Delhi: Former RBI Governor Raghuram Rajan on Tuesday said India is less liberal as a democracy than it was 10 years ago. In an interview to a national Television, while discussing the economic crisis in neighboring Sri Lanka, Rajan said that one of the reasons for that country’s crisis was its policies towards minorities. There was a time when Sri Lanka was seen as a successful medium income economy. He said that a large section of the minorities in Sri Lanka is the Tamil population. They have the problem of jobless development. But the politicians thought it better to divert attention from the problems of the minorities and created confusion which led the country towards civil war.
The former Reserve Bank chief said “I would say that we need to work for communal harmony and unity of the country, taking lessons from Sri Lanka, due to which the country’s economy and integrity will be strengthened. India should think how some politicians are trying to fuel these things.”
On the ill effects of communal conflict on the economic environment, Rajan said “people are worried. First, they think about the consequences… Secondly they think ‘Do I really want to do business with a country that mistreats its minorities?”
He said that when you look at China what they have done to the Uighurs, China has suffered a lot more than Europe and America. There is a ban on the goods produced there. Many stake holders are saying that they want to stop doing business in these areas. Civil society also plays a role and it is important to create an environment of a tolerant and need to respect democracy.