K. N. Raj
Encyclopedia
Kakkadan Nandanath Raj was born in Thrissur
district, the Cultural Capital of Kerala. He is popularly known as K. N. Raj, an India
n economist who played an important role in India's planned development, drafting sections of India's first Five Year Plan
, specifically the introductory chapter when he was only 26 years old. He was a veteran economist in the Planning Commission. He worked out a plan to raise India's rate of savings in the post-Second World War period when the country was in need of foreign aid. He computed India's Balance of Payments
for the first time for the Reserve Bank of India
. Raj was an advisor to several prime ministers from Jawaharlal Nehru
to P.V. Narasimha Rao. Dr. Raj was a Keynesian economist. He studied the application of Keynesian monetary theory
in Indian context.
. He was a disciple of a well-distinguished economist Malcom Adiseshiah at Madras Christian college. His teacher pressed for him to go for higher studies in London School of Economics
. His thesis was on the monetary policy
of India's central bank. Raj was a companion of distinguished economists like Manmohan Singh
, Amartya Sen
and Jagdish Bhagwati
. Although he was a staunch leftist, he was a critical of Lenin's ideas of the State.
Like all other Leftists, he opposed to the economic liberalisation in India.
(DSE).
After returning to Kerala
from Delhi
in 1971, Raj set up the Centre for Development Studies
at Thiruvananthapuram
, an institution that soon acquired an international reputation for applied economics and social science research. The work that Raj and his colleagues did for the United Nations
in the early days of the CDS, and published in 1976, helped shape the contours of what later came to be called the "Kerala model
" of development - the co-existence of low per capita income and very high physical quality of life indicators. It was really a paradox between economic and social development.
Raj once wrote philosophically: "I think that most of the things that welfare economists talk about are those that are obvious to all of us, especially the common people. In fact, even a pure philosopher and religious thinker like Sree Narayana Guru
, who achieved a social transformation in Kerala, spoke about the very same things that welfare economists speak about today: education, health care facilities, even small-scale industries... Many people like me practised welfare economics without knowing that it was welfare economics
, because we were anxious that economics should help the poor. But people who take economic theory literally would say that this is not our problem." Raj stood for the welfare of Aam Aadmi
throughout his life.
Thrissur
This article is about the city in India. For the district, see Thrissur district. For the urban agglomeration area of Thrissur see Thrissur Metropolitan Area...
district, the Cultural Capital of Kerala. He is popularly known as K. N. Raj, an India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n economist who played an important role in India's planned development, drafting sections of India's first Five Year Plan
Five-Year Plans of India
The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway...
, specifically the introductory chapter when he was only 26 years old. He was a veteran economist in the Planning Commission. He worked out a plan to raise India's rate of savings in the post-Second World War period when the country was in need of foreign aid. He computed India's Balance of Payments
Balance of payments
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers...
for the first time for the Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
. Raj was an advisor to several prime ministers from Jawaharlal Nehru
Jawaharlal Nehru
Jawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
to P.V. Narasimha Rao. Dr. Raj was a Keynesian economist. He studied the application of Keynesian monetary theory
Monetary theory
Monetary economics is a branch of economics that historically prefigured and remains integrally linked to macroeconomics. Monetary economics provides a framework for analyzing money in its functions as a medium of exchange, store of value, and unit of account. It considers how money, for example...
in Indian context.
Early life
He took B.A. from the prestigious Madras Christian CollegeMadras Christian College
The Madras Christian College, commonly known as MCC, is a liberal arts and sciences college in Madras , India. Founded in 1837, MCC is one of Asia's oldest extant colleges. Currently, the college is affiliated to the University of Madras, but functions as an autonomous institution from its campus...
. He was a disciple of a well-distinguished economist Malcom Adiseshiah at Madras Christian college. His teacher pressed for him to go for higher studies in London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
. His thesis was on the monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
of India's central bank. Raj was a companion of distinguished economists like Manmohan Singh
Manmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...
, Amartya Sen
Amartya Sen
Amartya Sen, CH is an Indian economist who was awarded the 1998 Nobel Prize in Economic Sciences for his contributions to welfare economics and social choice theory, and for his interest in the problems of society's poorest members...
and Jagdish Bhagwati
Jagdish Bhagwati
Jagdish Natwarlal Bhagwati is an Indian-American economist and professor of economics and law at Columbia University. He is well known for his research in international trade and for his advocacy of free trade....
. Although he was a staunch leftist, he was a critical of Lenin's ideas of the State.
Like all other Leftists, he opposed to the economic liberalisation in India.
Career
Raj joined Delhi University, where he was Professor of Economics and also Vice-Chancellor (from October 1969 to December 1970), spending a total of 18 years there. During that time, he was instrumental in setting up the Delhi School of EconomicsDelhi School of Economics
Delhi School of Economics , commonly referred to as DSE or D School, is a centre of post graduate learning of the University of Delhi. The centre is situated in the university's North Campus in Maurice Nagar, and is surrounded by a host of other prestigious academic institutions of the country...
(DSE).
After returning to Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
from Delhi
Delhi
Delhi , officially National Capital Territory of Delhi , is the largest metropolis by area and the second-largest by population in India, next to Mumbai. It is the eighth largest metropolis in the world by population with 16,753,265 inhabitants in the Territory at the 2011 Census...
in 1971, Raj set up the Centre for Development Studies
Centre for Development Studies
The Centre for Development Studies , Trivandrum, Kerala, India is a premier social science research institution. Over the years it has established a tradition of interdisciplinary research on development problems in India. Its main objective is to promote research, teaching and training in...
at Thiruvananthapuram
Thiruvananthapuram
Thiruvananthapuram , formerly known as Trivandrum, is the capital of the Indian state of Kerala and the headquarters of the Thiruvananthapuram District. It is located on the west coast of India near the extreme south of the mainland...
, an institution that soon acquired an international reputation for applied economics and social science research. The work that Raj and his colleagues did for the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
in the early days of the CDS, and published in 1976, helped shape the contours of what later came to be called the "Kerala model
Kerala model
The Kerala model based on the development experience of the southern Indian state of Kerala, refers to the state's achievement of significant improvements in material conditions of living, reflected in indicators of social development that are comparable to that of many developed countries, even...
" of development - the co-existence of low per capita income and very high physical quality of life indicators. It was really a paradox between economic and social development.
Raj once wrote philosophically: "I think that most of the things that welfare economists talk about are those that are obvious to all of us, especially the common people. In fact, even a pure philosopher and religious thinker like Sree Narayana Guru
Narayana Guru
Sri Nārāyana Guru , also known as Sree Nārāyana Guru Swami, was a Hindu saint, sadhuand social reformer of India. The Guru was born into an Ezhava family, in an era when people from backward communities like the Ezhavas faced much social injustices in the caste-ridden Kerala society...
, who achieved a social transformation in Kerala, spoke about the very same things that welfare economists speak about today: education, health care facilities, even small-scale industries... Many people like me practised welfare economics without knowing that it was welfare economics
Welfare economics
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate economic well-being, especially relative to competitive general equilibrium within an economy as to economic efficiency and the resulting income distribution associated with it...
, because we were anxious that economics should help the poor. But people who take economic theory literally would say that this is not our problem." Raj stood for the welfare of Aam Aadmi
Aam Aadmi
Aam Aadmi is a term used by Indian National Congress as their political agenda in 2004 and 2009 elections and uses this as its guiding principle in running its coalition government. It refers to the average Indian or Average Joe...
throughout his life.