I Do What I Do

by Raghuram G. Rajan

Nevertheless, a strong organization relies on continuous self-examination in order to stay at high levels of excellence. In the coming months, we will have the occasion to have a dialogue through town hall meetings. Let me, however, flag some areas of strength as well as those of concern.

It has often been said that India is a weak state. Not only are we accused of not having the administrative capacity of ferreting out wrongdoing, we do not punish the wrongdoer – unless he is small and weak. This belief feeds on itself. No one wants to go after the rich and well-connected wrongdoer, which means they get away with even more. If we are to have strong sustainable growth, this culture of impunity should stop. Importantly, this does not mean being against riches or business, as some would like to portray, but being against wrongdoing.

There may be information in the rating that you should take seriously. As an organization, if we do not subject ourselves to serious self-examination and continue to pretend everyone is working fine, let me assure you that the organization cannot become better than what it is now. We need to continuously review and renew ourselves if we have to compete with the best in the world.