Reserve Bank of India

By Catherine Contiguglia
♦ The signing of a contract between the Somali government and UK oil and gas exploration company Soma to collect data on onshore and offshore oil has been called non-transparent, and raised concerns about whether oil politics could destabilise the country’s fragile recovery.
♦ Prague’s CorruptTour agency is selling out bookings for their Crony Safari that brings tourists to a sites connected with the most famous corruption scandals – from an address registered by 600 companies to a school where cash can buy a degree.
♦ The monetary tightening by India’s central bank could close credit arteries and make it difficult for the country’s banks to cover a mass of rapidly souring loans, writes Reuters’ Andy Mukherjee, as short term funding costs have increased during a time where the economy has slowed and the stock market is slumping.
♦ The drive by policy makers to put Fannie Mae and Freddie Mac out of business doesn’t make any sense, writes Joe Nocera, as they are no longer bullies, are making the government money, and are necessary to uphold the core of American housing finance.
♦ The sit-ins being held around Egypt by those in favour of reinstating President Mohamed Morsi will likely not work, according to an analysis by Foreign Policy’s Erica Chenoweth, as studies show that nonviolent campaigns must follow a strategy of carefully sequenced moves, or they can end in catastrophe. 

♦ Eike Batista built an empire and became Brazil’s richest man with the OGX oil company. It now stands on the verge of bankruptcy, however, after it turned out the oil fields meant to produce more than half of Brazil’s current national production were duds.
♦ Raghuram Rajan has his work cut out for him as the new head of the Reserve Bank of India, with the rupee at fresh lows and the slowdown of quantitative easing on the horizon. Rajan, who warned about the crisis , is expected to take a tough stance on moral hazard.
♦ In an analysis of how Egypt’s rocky present could forecast Turkey’s future if the AKP does not distance itself from Erdogan’s brutal crackdown and drive for Islamisation, Timur Kuran argues that political Islam must gain power legitimately through the creation of democratic systems.
♦ “Once you spend more than $100m on a movie, you have to save the world,” Hollywood blockbuster writer Damon Lindelof tells New York Magazine in this profile the of the U.S. film industry.
♦ A pension crisis is drawing nearer in Chicago, as the retired teachers’ pension fund stands at risk of collapse and in 2015 state law will require it to pay $1bn more a year into city pension funds to make up for years of underpayments. 

The new governor of India’s central bank has built a reputation as a world-class economist during a quarter century of teaching and writing – helped along by one explosive speech in 2005. Here is a potted biography in six short chapters.

1. He was the party pooper at Alan Greenspan’s farewell bash at Jackson Hole in 2005, raising warnings about the dangers that led to the financial crisis of 2008-09. In response, Lawrence Summers called him a “luddite”.

2. At the time, Rajan was serving as the youngest ever chief economist at the IMF. He was also the first non-westerner in the job, which he held from October 2003 to December 2006.