And that means that along with working for labour flexibility, we must ensure that our children are well educated, reach their adulthood healthy and are not crippled by the burden of disease and malnutrition. That is why it is of great importance to spend money on health, education and on vocationalisation of education. This we will do, but governance is an issue that worries me.

I think (N.T.) Rama Rao, the former chief minister of Andhra Pradesh, once said that ‘The Centre is a conceptual myth... India lives in the states.’ Unless the states’ political systems, the states’ economic management improves, I don’t think we can realise our goals.

When I was governor of Reserve Bank of India some 25 years ago, I started the process of computerising bank accounts and there was a strike in the Reserve Bank. Recently, some of them (who went on strike) came to me and said that you taught us the value of computerisation. Today our daughters and sons are computer engineers.

I sincerely pray and hope that we remain a functional democracy. But democracy has certain disadvantages. I have a friend in the International Monetary Fund, who went to Korea in the days it was run by an authoritarian system. They were discussing the issue of devaluing the currency. When my friend talked with the finance minister, he said, “That’s a very difficult question. You don’t expect me to give an answer right away.” When my friend asked him how much time he would need, the finance minister said, “I will take half an hour, I have to book a call to the president.”

... contd.