All those panel discussions, oped articles and even innane coffee table discussions on what is the bane of the country, would typically percolate down to two major issues .......corruption and casteism. And while I've heard extreme probable solutions like 'revolution' and 'removal of second names' for the issue of casteism, on corruption, I hadn't even heard of a one stroke solution.
So this, to me almost appears like Modi pulling a rabbit out of a hat. It's that magical.
In fact that historical evening when I first heard, I was like 'होही नहीं सकता, impossible....some prank'. And slowly disbelief of one kind turned into disbelief of the magical kind, the beautiful kind....and I was like 'wowwww.......'
To quote a friend 'In one stroke, so well timed and planned, the government has sucked out a staggering 87% of the cash in the system. It's the kind of a purge we can never hope to experience or see in a lifetime and I am so glad I am living in these times, to see this day and just feel it soak in.'
We've sadly grown immune to the inequality we see around us, we've learnt to use defense mechanisms to go on with life inspite of seeing such raw inequality. The statistics speak their own story.
According to the latest data on global wealth from Credit Suisse, the richest 1% of Indians own 53% of the country’s wealth, the richest 5% own 69% of the country’s wealth, while the top 10% have 76%. At the other end of the pyramid, the poorer half of our countrymen jostles for 4.1% of the nation’s wealth.(source: livemint - richest 1% own 53% of India's wealth)
This is not to say we need communism, or an absolute equal distribution. No, let there be capitalism...but based on meritocracy, based on principles of integrity, fairness, honesty.
And out of the blue comes this one master stroke....and 87% of the cash in the system is sucked out.
Sure it won't be easy, and sure there will be inconveniences and maybe even longer lasting repercussions. But then it's radical space, like a surgery, and it will need time to heal.
The ones inconvenienced are not cribbing. The aam aadmi in fact seems thrilled, rejuvenated, restored to the possibility of faith and hope that life can after all be fair.
The ones complaining are the ones that it hurts most.
But to pause and reflect; even if I'm sitting on a chunk of cash, maybe not because I'm corrupt, but because I was part of the viscous system, can I pause to think....can I be a willing part of the detox.........can I be willing to let it go........do it gracefully......do it for the larger good....do it because it's right
Let's support this from every cell of our body. Let the positivity from all of us see this through. Let it be an exemplary move from our country.
Modi, I salute you, even as I keep all my other reservations aside....for this one brilliant move, you are now a real life hero !!
I am awed the way my fraternity have risen to this demanding sensitive occasion and are giving such good service. Not a single instance of public getting annoyed has been reported so far from my area. 3 cheers for the bankers.
ReplyDeleteGood to hear this....I was wondering about the pressure the banking system must be under.
ReplyDeleteVery good move, but it had a lot of other agendas to it too.
ReplyDeletealready, there are signs that the real motive was saving the banks. SBI just wrote off the bad loans of 63 wilful defauters, thanks t the flood of deposits.
http://www.dnaindia.com/india/report-sbi-writes-off-loans-of-63-wilful-defaulters-2273834
the idea was around. the implementation needed a Modi i guess!
http://m.thehindubusinessline.com/opinion/columns/s-murlidharan/for-financial-inclusion-try-black-magic/article5376265.ece
There are three real reasons for the Demonetisation.
1. Move the country towards a digital one, move to GST + taxing banking transaction fee.
2. Get funds into the banks saddled with bad debt. Underwrite industrialists whose bad debts make us unsteady. Bring down interest rates.
3. Tactically, hit other political parties and wipe out their war chests. Hit internal rivals wipe out their money power.
There are three stated reasons for Demonetisation.
1. Anti-terrorism. Temporary.
2. Black Money, temporary. But other measures are being put into place.
3. Empower the lower strata… job creation has till now been low though GDP is high. But with spread of banking downward, investment in infrastructure it is possible.
Is it Financial Ambush? Political Assault? Underwriting Industrialist's Debt? Propping Shaky Banking? And Economic Restructuring? Yes to All of The Above.
Swaroop, while a lot of what you've said may be true, I still believe it can go a long way to achieving the three stated reasons. It's like you have a virus, and then you create an anti virus, then the virus gets better, and you create a better anti virus. This virus has been around too long, and no normal policy would have been effective enough. So, while I'm agreed that it seems rather harsh and maybe even dictatorial in approach, I'm just glad to atleast see one solid step in the direction.
ReplyDeleteMight even sound naive, but right now I'm happy seeing just that :)
There is absolutely no doubt that the move is an absolutely fantastic move. Introducing a 2000 denomination leaves one to speculate on the reasons. Also, there seems to be an assumption that 83% of the cash in the system that got ducked out is all illegal money. In Insurance, when we do a financial underwriting, we ask "source of income" and don't treat all cash income as illegal income. So, that difference of moving to a cashless economy vs removing corruption/ increasing income declaration/ reducing tax evasion needs to be acknowledged.They are not the same. As part of the 2% of tax payers, I am personally delighted but am cautiously optimistic of the outcome.. will cash transactions stop? Will businesses that run on tax arbitrage as a business model, because there are such slim margins on their core business proposition, move away from cash? Or will all this one time accounted money (as a result of this move) move back into unaccounted money?
ReplyDeleteI'll stay with your very first sentence. :)
ReplyDeleteRest is technical details that need sorting out..maybe lots, but that's still operative details...at this point, just glad to acknowledge that there's even a move like this in the direction.