Elections should not affect development, says Reddy

Reserve Bank of India Governor YV Reddy said development policies should not be affected by political factors.

Speaking at the inaugural session of the "Global Development Conference", Reddy pointed out the separation between electoral cycles and the functioning of the economy.

Referring to the recent volatility in the markets, he said they did not turn volatile because of the electoral cycles. "We have moved away from a weak consensus on reforms for a stronger one," he said.

Also speaking at the session, Nobel laureate Amartya Sen said high economic growth was not enough if its benefits did not reach the poor.

"The question is "" what the reform is doing for the people at the bottom of the pyramid," he asked.

Comparing with China, he said India, as a whole, was way behind its neighbour in education, health and other social areas.

He added that adequate reforms taking these aspects into consideration would require a detailed package from the government.

Sen said no economic reform was possible without political reforms and added that democracy allied with public reasoning was essential for this.

He said the recent thaw in Indo- Pak relations was also because of public awareness and pressure.

Commenting on the role played by the developed economies in perpetuating inequality, Sen said 85 per cent of global arms exports was from these economies. Naturally, if the "policeman" was himself responsible for the problem, there was little that the world could do.