NEW DELHI: New York University (NYU) economist Paul Romer will replace India’ s Kaushik Basu as the World Bank’s new chief economist.
“Yes rumours are correct — very excited to welcome our new VP in the fall,” the Wall Street Journal quoted World Bank economist Florence Kondylis in a tweet.
The formal announcement on Romer’s appointment is expected this week, but it was not immediately known whether Basu will take up a new assignment, or return to Cornell University.
Basu is on leave from Cornell University where he is Professor of Economics and the C Marks Professor of International Studies
Romer is a strong proponent of the so-called “endogenous growth theory”, which argues that investments in human capital, technology and ideas, are the primary growth drivers.
Basu, whose term at the World Bank will end on July 31, served as the chief economic advisor to the finance ministry from December 2009 to July 2012.
The handover at the World Bank comes amid widespread speculation on Raghuram Rajan’s likely successor as the new Reserve Bank of India (RBI) governor.
Basu’s name has been talked about as one among the likely contenders to replace Rajan at Mint Street, whose term ends on September 4.
Rajan, who has had repeated run-ins with the political establishment, for steadfast focus on taming inflation, said last month that he was not keen on a second term and will return to academia.
Rajan is a former International Monetary Fund (IMF) chief economist and Chicago University professor who famously warned about the impending global financial crisis of 2008 that sunk the world economy into is worst slide in 80 years.