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Showing posts with label GDP. Failure. Show all posts
Showing posts with label GDP. Failure. Show all posts

Saturday, December 02, 2017

Demonetization : 'Radical Step' which would never compensate for the 'Poor People of India'

December 02, 2017 0


There are two main categories of pain demonetization has caused: 
(a) the relatively minor one of people having to stand in queues for hours day after day, leading to lakhs of man days and productivity lost;
(b) the near starvation that lakhs of daily wage workers, workers in small industries, labor intensive industries of all kinds from the tea gardens of Assam in the east to the diamond cutting industry of Surat in the west, are having to suffer for no fault of theirs. 

The second pain is absolutely inexcusable. No matter what golden age is finally achieved through demonetization, it can never compensate for what poor people are suffering and indeed have already suffered. The damage is already done and nothing that happens in future can make up for it.


Prime Minister Narendra Modi is hiding under his table because of the failure of Demonetization. He cannot show his face to the Indian Public because of the catastophe.


In that sense, demonetization is on par with some of the most anti-poor steps ever taken in independent India, such as Sanjay Gandhi’s forced sterilization drive during the Emergency; the slum demolition programs undertaken by different states without providing alternative accommodation to the slum dwellers; the displacement of thousands of people to build big dams from Bhakra Nagal to Rihand in the 1950s and 60s to Narmada in the 1990s, etc. All these were undertaken with the best of intentions and even had some good results, but in fact they were immeasurably cruel. It can easily be argued that without Josef Stalin’s ruthless steps such as the collectivization of Soviet agriculture (in which lakhs died), the USSR and present day Russia would never have become the world power they have. So do we want to follow in those footsteps?
This is the damage even if demonetization succeeds in its objectives. If it does not, if very little black and counterfeit is unearthed, while the GDP drops steeply, job losses rise, etc, there is nothing left to say. There is a cliche often cited by those justifying extreme, ‘radical’ steps like demonetization: ‘You can’t make an omelette without breaking eggs’.