November 08, 2019

Demonetisation. Why keep people in dark?

I just watched this video very elaborately describing Demonetization story :  the process and the ill-effects of it .

I still remember the time I heard this news on 8th November 2016. I was in office. I thought it was a Masterstroke.  80% of the currency gone within an instant, now what the heck will the money-hoarders do! Thinking from Common-sense it did seem like a Master-stroke only.

But I forgot a lot of things. First, It's India. To varying extent we all are corrupt (sounds harsh but it's true). So the most corrupt of us all will do every jugaad available to save their black money . And they did exactly that. Second, while I had already switched largely to cashless modes of payment, not all of us had. In fact, most of India still is very much dependent on Cash. How are they going to manage with almost zero money (nobody keeps large amount of money in denominations of 100s and less). Third, are we really prepared to handle such a big currency change  exercise all over the country? 

It seems, just like me, the Govt. forgot all of this too. There was almost zero preparation and the rules were changed on daily basis for next 2 months. And from there the fantasy became a nightmare. Thankfully I had just a single 500 Rupee note and I was mostly able to manage that phase with various online and cashless transaction modes . But I saw my father having to stand in line for hours to get little sum of money to buy ration for home among other things. I myself stood in line on his behalf only to go empty handed. 

Well we all were facing this difficulty thinking this as a small contribution and sacrifice for the benefit of the nation. But 3 years after the event it's pretty much clear that there was absolutely no positive that came out of this exercise. 

But let's be honest, most of us from common sense thought it was a brilliant decision. The Govt took a big risk there, probably for electoral benefit but also to improve economy trying to be a messiah of Janta. It was an electoral hit but a economical miss. But, now that it failed we can't just escape from our previous predictions and just blame the Govt. This kind of exercise was never performed in the world so we didn't know what would be the short and long term effects. 

So, I am OK if Govt tried something and it failed. What I hate about this Govt is that it would never take the responsibility of such a big disaster. Have you ever seen any minister or our very own PM admitting it was an honest mistake? Such a historic step taken and nobody talks about it since last 2 years. And even if they do, they still somehow try to reason it was a great decision (I remember the then FM Jaitley ji's multiple blogs). 

We were told that the blip in economy is due to short term effects, in long term it would be beneficial, but now 3 years down the line the economy is at its worst state. So, why not admit it?! Hundreds of people died standing in line. There death should account for something. Lacs lost their jobs in informal sectors, someone should be answerable to them. Bankers worked overtime to get everything in order. Nobody accountable for their hard work going waste? 

People were shown some dreams and asked to make sacrifices and people did. Don't these people at least deserve to be told honestly that none of those dreams materialize? Why keep people in dark? 

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