Today is the first anniversary of #Demonetization in India. And the nation is divided vertically on whether it was a disaster or it was a divine act. You cannot be in the middle, you have to have a position. And based on that you will be labelled and attacked/trolled/criticized or revered/hailed/saluted.

Here are few articles I am reading currently:

The Economist Article

Demonetisation’s Economic Impact: $15 Billion On 3 Vital Sectors

A year after demonetisation, its effects have still not been quantified

But black money is not kept under the pillow: Pronab Sen of IGC India

An Account Of India’s Attempts To Curb The Black Economy, And Why They Don’t Work

The stated objectives of #Demonetization were:

  1. To curb black money – unsuccessful. Because all cash is not black money. And black cash is a flow and not stock. We should have focused on Black Wealth.
  2. To stop terrorist funding – unsuccessful. It may have reduced terror funding for a while; but during last one year new currency notes were seized from terrorists
  3. To move India towards less-cash economy – only partially successful. Because of very low base, there was initial jump in Digital transactions (when expressed as %, it looked even bigger), but that has stabilized or is slowly declining.
  4. Ravi Shankar Prasad, the union minister has invented another illogical and nonsense “benefit” of demonetization yesterday. Check below news reportDemo5

 

On downside, there was tremendous chaos. Almost 150 people died while standing in queues. Standing in queues was hailed as a badge of patriotism. This caricature summarizes that thought well.

Demo6

Economy contracted drastically – this was further accentuated by poorly executed GST implementation. The cash is back at the previous levels. Instead of 500/1000, we have 2000 rupee notes – so black cash can be stashed even more conveniently. And yes, there is no chip in 2000 rupee note!

Government is going all out and deploying several ministers, MPs and media agents to “celebrate” this day as “Anti Black Money Day”. This is like adding insult to injury. Nobody is favoring black money. But that cannot justify the illogical and ill-planned step that Demonetization was.

And there were rumors that today the PM might announce another “masterstroke” move – against Benami property (illegal/unaccounted property). Well, you can only keep calm and wait till 8 PM today for another “Mitron…” moment. Till then, happy Demonetization anniversary – in whichever way you choose to observe it…

P.S.: Don’t forget that today is also birthday of BJP Marga Darshak L. K. Advani! Born on 8th Nov 1927.

P.P.S: For Marathi people, आज पु ल देशपांडे यांचा देखील जन्मदिवस आहे (८-नोव्हेंबर-१९१९)

 

 

 

 

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