Sunday, July 08, 2012

The glacial pace of change: QFI edition

In the Percy Mistry report, there are some striking examples of the inability of the Indian policy process to deliver change at a reasonable pace. See: Box 9.2, page 127 (index futures); Box 9.3, page 128 (CDO); Box 9.4, page 128 (Gold ETF), Box 9.5, page 129 (interest rate futures in the US). See a similar chronology for currency futures.

Here is another example:

What's disappointing about the Indian policy process is that many of us in India will think "a 22 month delay - not bad!".

1 comment:

  1. I think there are two problems with this type of changes in different areas:
    1. The back office of requires computerised coordination for tracking these reforms.
    2.There are reforms which require large number of changes, it is ok for them to take time. If we have a huge pipeline of ideas, everyday something or the other in Indian finance will develop. Each development may take 22 months but front office will see a change every day.
    -Poverty applies not just to wealth, but ideas too.

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