Advice and Dissent: My Life in Public Service

by Y.V. Reddy

Any governor of the Reserve Bank of India must walk a tightrope. He must seem to be independent - but without offending the government of the day. He is not equal to the government but must convince others that he is not subordinate to it either. And if he can do all this with the right policies in place, he may leave behind a career as illustrious as that of Dr Y.V. Reddy, Governor of the RBI from 2003 to 2008, a time of high growth, low inflation, an appreciated rupee and a robust banking system that withstood the global financial crisis.

Advice and Dissent throws light on the lessons of Dr Reddy's fascinating professional life, as on the politics of his years in public service.

Genres: Biography, Economics, India, Nonfiction, Memoir, Autobiography

552 pages, Kindle Edition

Published June 27, 2017

About the author

Yaga Venugopal Reddy, better known as Y.V. Reddy, was the 21st Governor of the Reserve bank of India from 2003-2008 and the Chairman of the Fourteenth Finance Commission of India from 1st Feb. 2013 to 31st December 2014.
He was a member of The Palais Royal Initiative on the Reform of the International Monetary System. He was also on the Advisory Board of Institute for New Economic Thinking (INET). He was member of the High Level Advisory Panel on Independent Evaluation of Role of IMF in Global Financial Crisis.

Dr. Reddy was the Conference President of the 97th Annual Conference of the Indian Economic Association in 2014. Earlier, during 2011, he was President of Indian Econometric Society. In 2010, President of India awarded India’s second highest civilian honour, the Padma Vibhushan to Dr. Reddy. Dr. Reddy was Governor of Reserve Bank of India from 2003-2008.

On 17 July 2008, Dr. Reddy was made an Honorary Fellow of the London School of Economics. Earlier, he was awarded Doctor of Letters (Honoris Causa) by Sri Venkateswara University, India; and Doctor of Civil Law (Honoris Causa) by the University of Mauritius.

Dr. Reddy (born on August 17, 1941, in Patur, Cuddapah District, then in Madras Presidency, British India) received his M.A. in economics from Madras University, India. He holds a Ph.D. from Osmania University, Hyderabad. He also holds a Diploma in Economic Planning from the Institute of Social Studies, The Netherlands.

He joined Indian Administrative Service in 1964. He served in Governments of Andhra Pradesh, Government of India and World Bank, and rose to the position of Secretary (Banking) in Ministry of Finance in 1995. He moved to Reserve Bank of India in 1996 as Deputy Governor, and then to International Monetary Fund in 2002 as Executive Director on the Board.

Currently, Dr. Reddy is Honorary Professor, Centre for Economic and Social Studies (CESS), Hyderabad, India.

Reviews

[Divakar · Rating 4 out of 5]

I normally stay away from books written by Bureaucrats and other government functionaries. They are so full of themselves, hide more than what they convey due to the covenants of their government service / secrecy guidelines and more often than not – they are self indulgent idolatries on their life in service.

However, I was drawn to this book for multiple reasons. Here is the story of a fellow mana-wadu from AP, a man who displayed plenty of conviction and courage during his stint as the governor and also witty to boot – based on the little that gets written about RBI governors and what we see on TV. Here was a man who shepherded India’s economy and insulated it from the turbulent financial crisis that gripped the world. Something told me that notwithstanding my views on books by bureaucrats, I should read his autobiography…and must say…..that I was glad that I read it.

The celebrated life of our past Governor – from his early childhood in AP to his last position as the Chairman of the Finance commission – is an eye opener. On how to channel your energies in life towards higher goals and once you are in a position to influence issues in the country – how to do a selfless job with courage and conviction and then gracefully fade into the sun-set after an innings well played and a life well lived.

There are actually two books in one. One is the autobiography and second is a lot of discourse of monetary policy, economic and related issues in overseeing the banking system in the country and providing counsel to the government in matters of financial and monetary regulation and policy.

On his personal life, he writes with honesty and candor. And his trademark humor slips in elegantly even when he is writing about serious issues. Here is a man who does not call a spade a spade….is capable of calling it a bloody shovel if required. Not the usual stories of government servants taking up any position in the service of the country – and claiming that they sacrificed their family and personal life – he is forthright when he writes about what he wants in terms of postings to widen his horizon and broadbase his experience and how he seeks it in a straightforward manner, writes as much about his failures as his successes. Rare to see this kind of frankness in government servants.

His being a complete family man also comes across well as he tries to navigate his professional life with all the changes and relocations that he gets and balance it with the needs of his family and immediate kith and kin.
His reminiscences as the Governor of RBI makes for interesting reading. Here is an institution owned by the government, managing the affairs of the banking system which is mostly government owned – and reporting into the government – and yet trying to be independent and asserting itself. These issues are covered in 4-5 chapters and they make for compelling reading.

The chapter on his equation with P Chidambaram is compelling. On how he has to support the government in its yo-yo years of growth and yet keep the system clean….the way RBI fights on OCBs and has its way…and how it gives in to the political compulsions of the government of the day and gives up on PNs….is like a primer on how to handle differences with the political system, disagree when required without being disagreeable.

Dr Reddy was the last of the economist-bureaucrat Governors who have helmed RBI . Having worked his way up thru the IAS…he understood India at the grass-root levels and what works for the common-man….and he seems to have put it to good use while he was the Governor by looking at how policy decisions will ultimately pan out at the ground level impacting the aam-janta.

At another level, this is a book about dreams and opportunity and what is possible in a country like India. It doesn’t matter if you are born in the back of the beyond of India, studied in a vernacular medium and did not have the old boy connections. With hard-work, determination and focus …you can achieve all your dreams…and as you work your way up, courage, honesty and integrity of purpose….will ensure that you end your career at such a high. This part….I am not sure if the author intended it to come across that way – but it is inspirational and disproves that you need elitist education and ultra-snob schools to schmooze your way to success.

For readers not familiar with banking and economic issues –read the chapters on these subjects slowly…it will sink in eventually and you will understand the issues he is writing about..I think he wrote the book with the general lay-reader in mind and not serious students of economics and finance.

Eminently readable book….would recommend it to all to know the story of a simple son of the soil and the stellar role he played in guiding our economy when half the world imploded.

[Prashanth Bhat · Rating 5 out of 5]

ಭಿನ್ನ ಅಭಿಪ್ರಾಯ - ವೈ.ವಿ.ರೆಡ್ಡಿ

ಈ ಪುಸ್ತಕ ಹಲವಾರು ಕಾರಣಗಳಿಗೆ ಓದಲೇಬೇಕಾದ ಪುಸ್ತಕ.
ಒಂದು ಮೊದಲು ತೆಲುಗಲ್ಲಿ ಇವರ ಆತ್ಮಕಥೆ ಪ್ರಕಟವಾದಾಗ ಅದು ಖಾಸಗಿ, ಬಾಲ್ಯದ ನೆನಪುಗಳ ಬರವಣಿಗೆ ಆಗಿತ್ತು. ನಂತರ ಇಂಗ್ಲೀಷ್‌ನಲ್ಲಿ ಬಂದಾಗ ಅದು ವೃತ್ತಿಜೀವನದ ನೆನಪುಗಳ ಸಂಕಲನ ಆಗಿತ್ತು. ಕನ್ನಡದಲ್ಲಿ ಬಂದ ಆವೃತ್ತಿ ಇವೆರಡರ ಆಸಕ್ತಿಕರ ಅಂಶಗಳ ಒಳಗೊಂಡಿದೆ.
ಈ ಪುಸ್ತಕ ಓದುವುದೆಂದರೆ ಆದಷ್ಟೂ ಸರಳವಾಗಿ ಭಾರತ ಎದುರಿಸಿದ ಆರ್ಥಿಕ ಮತ್ತು ವಿತ್ತ ಸಂಬಂಧಿ ಸಮಸ್ಯೆಗಳ ಎದುರಿಸಿದ ಅನುಭವಗಳ ಸಂಕಲನ ಓದಿದ ಹಾಗೇ.
ಅದು ತೊಂಬತ್ತರ ದಶಕದ ಜಾಗತೀಕರಣ ಇರಬಹುದು, ಆಡಳಿತದ ಸವಾಲುಗಳಿರಬಹುದು ಹೀಗೆ. ಇದರ ನಡುವೆ ಎನ್‌ಟಿಆರ್ ಕೈಕೆಳಗೆ ಕೆಲಸ ಮಾಡಿದ ಅನುಭವಗಳ ಎರಡು ಅಧ್ಯಾಯಗಳೂ ಆಸಕ್ತಿದಾಯಕವಾಗಿದೆ.
ಸಂಕೀರ್ಣವಾದ ವಿಷಯಗಳನ್ನು ಸರಳವಾಗಿ ‌ಹೇಳಿದ ಕಾರಣ ಈ ಪುಸ್ತಕ ಇಷ್ಟವಾಯಿತು.
ಕಳೆದೆರಡು ವರ್ಷಗಳ ಹಿಂದೆ ವಾಟ್ಸಪ್‌ನಲ್ಲಿ ಹರಿದಾಡುತ್ತಿದ್ದ ಚಿನ್ನ ಅಡವಿಟ್ಟ ಕಥೆ ಈ ಪುಸ್ತಕದ್ದೇ.

[Sambasivan · Rating 4 out of 5]

The story of a bureaucrat is quite interestingly told. The author has a natural humility and a flair to explain complex concepts on fiscal matters. Must read for any budding student of economy.

[Geet Kalra · Rating 4 out of 5]

A recommended read for people ‘interested’ in Govt working and Civil services!

[Anantha Giri · Rating 4 out of 5]

RBI is one of the respected institutions in the country and this book throws a lot of insight on its workings and logic behind the decision makings of RBI.

Dr. Reddy's journey from his humble beginnings to Governor of RBI was fascinating and inspiring to read. Of particular interest were occasions when he had to walk tightrope between safeguarding national interests and meeting wishes of political representatives. Overall a fantastic reading experience.

Edit: With this book I have read memoirs of 3 RBI governors - YV Reddy, Subba Rao, Raghuram Rajan. I bought Overdraft by Urjit Patel recently. Soon I would have read the memoirs of recent 4 RBI governors not counting the incumbent. It makes for interesting reading for me as someone who once dreamed of becoming RBI governor myself in university. I have learnt a lot from all of those books.

[H]

Started this book assuming it would be a bland read, couldn’t be any more wrong.

The book is written in a way even a person with nil knowledge abt finance like myself can understand.
And the Governor has been as apolitical as one can be, yet convey the unsaid.

We all must be grateful to his foresight and leadership during the financial meltdown, India remained unaffected, we understand from his book. Thnq Governor Reddy, we are all grateful for your leadership.

[SP Goyal · Rating 5 out of 5]

Dr. Y.V. Reddy’s memoir, Advice and Dissent, offers a unique insider’s perspective on India’s financial policy-making. The book provides a clear and accessible explanation of complex topics like monetary policy, inflation control, and fiscal discipline, making it a compelling read for both finance enthusiasts and general readers. It is a must read for career bureaucrats interested in macroeconomic policy and practice. Dr. Reddy shares behind-the-scenes accounts of his interactions with political leaders, reflecting the delicate balance between the RBI and government, as well as the challenges of managing financial stability in a growing economy. His emphasis on prudence and regulation, coupled with his diplomatic handling of political pressures, makes this book both insightful and educational.
Overall, Advice and Dissent is a thoughtful reflection on leadership and economic governance, offering valuable lessons in policy-making and public service. It’s a must-read for those interested in India’s financial landscape.

[Shailendra Singh · Rating 4 out of 5]

Mr Reddy is former Governor of Reserve Bank of India and IAS officer. This book talks about his experience at government, world bank and RBI.

He has talked about the challenges in implementing reforms at ground level as an IAS officer in Andhra Pradesh and Telangana. He has also shared interesting insights of his time at finance ministry during balance of payment crisis and how India navigated through the same.

The chapters on his tenure at World Bank and IMF gives an insider view of these institutions. His tenure at RBI as Governor was marked by public confrontation between finance minister and RBI on the direction of monetary policy as the GDP growth was high and RBI was seen as hindering the growth by not lowering interest rates. However, the stance of RBI was vindicated after India emerged largely unscathed by global financial crisis of 2008.

Mr Reddy made valuable contribution in form of land reforms and development work in Telangana, fourteenth finance commission among others.

Overall a good read for anyone interested in macro economics in India.

[Ashutosh Kelkar · Rating 4 out of 5]

Dr Reddy's career has given him a view of Indian economy that only a very few can claim to have. He has narrated his journey from an IAS officer of a state to some of the most inportant positions that defined the path of India's economy. The book covers this journey quite well. One gets clear idea of how Indian economy transformed over the last 30 years of so.

One complain for me though is that the at times book reads more like and official report rather than an autobiography. A lot of professional & idealogical confilcts are discussed in brief and with a clear intent of maintaining dignity of all parties concerned (Dr Reddy made it clear that that was by design) . One doesnt expect a man of Dr Reddy' stature to share gossip like a socialite, but a little more detailing of the conflicts and motivations of interested parties would have made the book more interesting.

[Deepika Arora · Rating 3 out of 5]

Dr Y V Reddy is the kind of public servant we wish we had more of. Fearless yet effective in actually getting things done through a fairly corrupted system.

That perhaps is the reason nobody wants to criticise the book. It appears the book did not have an editor. Most of the text reads more like conversation notes than any coherent narrative of life inside the North Block. If you didn't know any better, you would take away the impression that the author was on self aggrandising mission

The publisher failed the author and wasted what was a fantasic opportunity to draw out the essence of such a stellar career

[Girish · Rating 4 out of 5]

A must read book for those who wants to understand the intricacies of how an RBI governor works.

The way Dr. Reddy has explained his life along with his Governor's tenure and the decisions taken in it, is a pleasure to read about. It becomes more interesting when you want to understand what kind of role RBI played during the various economic crises which India faced in the period of 1980s to 2005.

[Srikar Vantaku · Rating 5 out of 5]

This book is a true gem. Dr Reddy's expertise in administration and economics spans 5 decades and he had seen the 1991 crisis and ensuing reforms from close quarters. This experience coupled with his candidness in accepting his failures and successes makes this book remarkable. It was a thoroughly enjoyable read.

PS - Dont miss the end notes.

[Sri · Rating 4 out of 5]

A book describing his service in the govt of India. Although, it's written well, it will appeal more to people interest in Indian economy, banking and RBI. Chapters 15-24 deal with core economic issues that may be avoided by a general reader. The 'notes' section at the end has some interesting anecdotes.

[Tony · Rating 3 out of 5]

Nearly half of "Advice and Dissent" is about the former RBI governor's childhood and his life in the IAS. The rest, about his stints at the central bank, are occasionally abstruse but are salvaged by Reddy's sense of humour and the many vignettes focusing on tensions between the government and the central bank. Also memorable are Reddy's interactions with NTR and Chidambaram.

[Sainath · Rating 4 out of 5]

First half of the book was pretty engaging - Y.V.Reddy explaining his childhood in AP, early parts of his career until the end of his interactions with NTR. Grew tired of the high level of economic / finance jargon after that, as I don't really have that domain knowledge. Had to abandon the book at that point.

[Sankar Iyer]

One of the good books I have read. Insightful and a must read for commercial & central bankers. It also provides an intuitive understanding - an overview from a practitioner of International finance , Macro Economics, Leadership etc. Truly enjoyed reading the book.

[SUNDAR · Rating 4 out of 5]

Honest account of YV Reddy's life in public service.Gets a bit technical though in some parts and would have loved more anecdotes of his encounters with political class / more of his personal life
Overall,worth reading

[Brijesh · Rating 2 out of 5]

Initially the books was good, but over the time too many switches and lot of things are not in detail , economic changes of 1991 needs further update

[Prabodh Agarwal · Rating 5 out of 5]

Dr. Reddy takes us on a thriller as he took up service of relatively new Andhra Pradesh in Independent India, to his time as an economist shuffling between planning commissions at both federal & state level to his stint as a banker at World Bank, to finally resting in RBI.
The book is a great discourse on public policy. Dr Reddy started off as a probationary like every IAS officer. His job required him to be on the field, with people of Andhra Pradesh. We know him better as the RBI governor. Having been at both ends of administrative spectrum, shuffling multiple departments & roles, the book talks about multiple administrative institutions of India, and reader will definitely get a sense of how things shaped into what they are today.
He is a scholar & he leverages his intelligence & vast knowledge to give a detailed technical analysis of his works, as a civil servant, an economist & a banker.
Dr Reddy, the civil servant has been actively involved with planning commission in both Centre & State govt., and gives a good insider look of how govt functions & does what it does. His career took him towards active role in economics & finance divisions of India, where he groomed himself as future RBI governor.
Dr Reddy, the economist, has done an amazing job at explaining the Balance of Payment Crisis of 1991, liberalization of our economy & has eloquently explained how multiple regulations & policies were set up as India got ready to cope with a post - 1991 liberal economy & developed itself into a force to reckon with. He has given detailed analysis on different tools used by RBI in doing it's job, how were they developed & what necessitated their development. This makes the book difficult to read in middle chapters, but hey! it is a goldmine of information. If you want RBI and easy read, read Who Moved My Interest Rate, and you'll instantly understand my comparison.

-Cheers

[J. Datta · Rating 5 out of 5]

I was expecting to find this book on economic policy rather heavy-going but it is anything but. I found it hard to put down the book. The book is a tour de force. The prose is limpid, witty, ironic; Reddy is a marvelous raconteur.
Three aspects of the book stand out: the melange of economic, social, political, sociological, and administrative forces that marked the post-independence period that spanned Reddy's career; the story of the author's development through his childhood and youth, his years as an administrator, as a policy maker during the period of India's balance of payments crisis in 1991, and as Reserve Bank (RBI) Governor; and the accounts of the accomplishments and foibles of such illustrious Indians as N.T.Rama Rao (NTR), Rangarajan, Jalan, Jaswant Singh, and Chidambaram.
The first aspect relates to the complex web of economic, social, political and administrative narratives that determined developments in Andhra Pradesh, and the country as a whole. The emphasis is on economic policy, particularly the macroeconomic, financial, and regulatory reforms that began in the 1990s and transformed the role of the Reserve Bank and its relationship with the Central Government; but the account is not merely economic, it reveals how economics and politics were intertwined.
The second aspect concerns the author's personal development. he came from middle class rural gentry, had a checkered childhood, was mainly schooled in run-of -the-mill institutions, attended average colleges, and went on to enroll in Osmania University's PhD program. While in graduate school he prepared for the IAS, passed with flying colors, and opted for the Andhra Pradesh cadre, developing a reputation for integrity and for "being difficult," as in his face-offs with landlords in Ongole, and Mr. 10 %, the samiti president in Hyderabad district. However, all the while he was focused on learning and honing his skills, both at home and abroad. One of the highlights of his career was his term as Secretary, Planning, in the government of the colorful actor-politician NTR (and thereby hangs many a tale). During his time with NTR he oscillated between government work and academic pursuits. It was at this time that he realized that the failures of the "state" and the "market" warranted a new approach, with a focus on the evolving interface between the two, as well as on the political economy of India, reflected in the neglect of the interests of ordinary citizens, the "soft state," and the "tyranny of the ten percent" (comprising the industrial houses, the rentier class, and organized labor).
These insights were put to good use when, in September 1990, on the eve of India's balance of payments crisis, he joined the central government's Ministry of Finance and took charge of Balance of Payments matters in the Department of Economic Affairs. A string of poor economic policies (persistent budget and balance of payments deficits, mounting external debt) combined with external shocks and internal political upheavals o precipitate the crisis: the First Gulf war, the steep rise in oil prices, the slow demise of the Soviet Union, frequent changes in the ruling parties in power, and the assassination of Rajiv Gandhi. For Reddy, fate beckoned. In the Finance Ministry and his next incarnation in the Commerce Ministry, he threw himself into the design and implementation of measures to manage the crisis and the reforms that followed (among others severe import compression, negotiations with the IMF, the devising of the dual exchange rate and the subsequent unified exchange, the decision to allow Indian businesses to undertake overseas investments). From being an administrator, Reddy was transformed into a full-fledged policy practitioner-an economic wonk. His efforts did not go unnoticed. In September 1996, he was asked to become a deputy governor in the RBI.
So began his career as a central banker and so began the story of an amazing succession of reforms that he spearheaded while working with two RBI Governors, Rangarajan and Jalan. Some of these reforms helped transform the RBI form an arm of the central government to a more independent federal institution. As deputy governor, he attempted to change the silo culture of the RBI to a more collegial one, initiating greater interaction with stakeholders and specialists in state governments, banks, business, academia, and the money and securities markets. He also worked on reforms that affected the ordinary citizen (the liberalization of gold imports through legal channels and the reform of the draconian Foreign Exchange Regulations) and improved the operations of the RBI (a move away from the automatic monetization of government deficits and the adoption of an objective rule for the sharing of RBI profits with the government, which helped to restore the integrity of the RBI's balance sheet).
As Governor, he broadened the RBI's goals to encompass financial stability, in addition to price stability and growth. To foster financial and exchange rate stability he focused on the capital account, built up foreign exchange reserves, managing the impact of capital flows on inflation through sterilization. To promote price stability, he sought to influence expectations by announcing an indicative, but flexible, inflation target (which riled the Finance Minister). He thought the RBI could foster growth by favoring returns to savers, redirecting credit to agriculture, and pushing to improve the governance of banks by specifying governance standards, emphasizing monitoring to discourage risky banking, and insisting on regulatory compliance. The urban cooperative banks were strengthened; Sahara, a dubious deposit-taking non-banking institution was wound up; and several private banks shaken up. He kept a sharp eye on expansionary global forces, possible asset bubbles, and the overheating of the economy (to the discomfort of the Finance Minister), weighing interest rate increases against other credit tightening measures. Thus India successfully avoided the global contagion of 2008-09. Nevertheless political pressures led to massive waivers of loans to farmers, limited the reform of public sector banks and agricultural cooperative banks, and delayed measures to prevent overheating, so that when Reddy left the Governorship in September 2008, inflation was gaining ground, and despite tightening money and credit policies, credit growth was at a historic high.
The third aspect of the book, which may be of interest to Indian readers, concerns the accounts of NTR, who despite his eccentricities, succeeded in effecting institutional changes that had powerful impacts on economic and social structures in Andhra Pradesh, disrupting patterns of feudal dominance. India has had a series of great RBI Governors. Reddy worked with two of them, Rangarajan and Jalan, and was himself one of the pantheon. Finally he describes his interactions with two Finance Ministers: Jaswant Singh, a gentleman and statesman with a clear vision of the country's future directions; and Chidambaram, a man of eloquence, meticulous attention to detail, quick to grasp the essentials of an argument, and dogged in the pursuit of his ideas.
Throughout the book, what shines through are Reddy's integrity, his plain-speaking, his indomitable urge to learn, and his readiness to seize the day (as witness his advice to Rangarajan, "autonomy is seldom granted. It has to be seized."), and his refusal to be cowed by diversity. In the words of W.H. Auden, Reddy could, when "beleaguered by the same negation and despair, show an affirming flame."

[Rohan Pinto · Rating 5 out of 5]

Superb life and account by former Reserve Bank Governor.

"I cannot define God. I can recognise the devil", on intervening in forex markets despite not knowing the true value at which currency exchange rate should trade.