Indian Prime Minister Modi's Demonetisation:
Is it Good or Bad For India And The Global Village?
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2. The Data Gained:
In today's world, the Internet is full of companies
that are eager to take our data through the filled
forms. The data so gained is so important that
companies become big by selling that very data
from us. Data is extremely important. It is said that
The Catholic Church could rule over Europe for so
long because of the secret data received through
confessions.
Not having the proper data, till now, the
government and its own bank could only guess
the amount of cash in the circulation. Now, the bank knows the exact amount. Not only that, the
central bank has the data of the distributing bank, the numbers, the handlers and what not. In fact,
it has the entire history of the cash circulation. Almost like in the stock market, now the bank's
computers can not only help digitally detect unusual transactions, they can detect the source of the
illegal cash too.
Thus, the government will not only look like having a good grip on its cash, and subsequently its
economy, it will be practically scientific in its approach too. The significance of this in planning
projects and enhancing competency is huge for a nation, whose production is severely hampered
by its culture of corruption.
3. Necessity is the mother of invention:
Akin to 'necessity is the mother of invention', the demonetisation has invoked new methodologies in
both the bad and the good camps. While the former has found ways to misuse even the new notes,
the later has had to modify its ways into using electronic gadgets like mobile phones for cash.
While ceasing the opportunity the country's IT guys are coming up with new aps and therefore
digitalising the nation, and the tax officials and the banks are getting more cash back, as a
measure to ease pain the government has been forced to think of offering unusual programmes
that benefit the poor. As if the missionaries were at work in this Hindu India, the neglected and
cashless bank accounts of the poor suddenly became important had cash and therefore became
'born again accounts'. At the end, India as a whole seems to be gaining.At the end, India as a
whole seems to be gaining.
4. The cleaning up:
A. General corruption:
With the cash exchange taking place outside recorded methods, this measure alone cannot abolish
the 'exchange corruption', but the pinpointing of its source can help identify the culprit. While this
has helped the apprehending of influential public figures, demolishing 'it's a witch hunt', it has
brought even its own party cadres in the fray. The force of the guilt of not being able to bring home
the black money as promised in the beginning, did play its part in these measures.
B. Political corruption:
All parties, including the BJP, are corrupt and have the unaccounted black money. Almost like the
AAP party changing Indian electoral politics, this measure helps in the making of political money, in
general, cleaner. With the ticket distribution for election depending on the black money, this will
have enormous benefit in the bringing of honest and capable leaders to the elected bodies.
5. Terrorism reduction:
Even if the cash forms less than 10% of the black money, it constitutes a much higher percentage
of the entities that kill Indians through both Maoist
and Islamic terrorism. Yes, being run not only by the
untaxed money but printed money too, Mumbai
underground guys, the North East insurgents, the
Naxals and the Pakistani terrorists have been a menace
to India. This demonetisation certainly has had an impact
on them. Although attack on army camps in Kashmir
suggests otherwise, and 'Stone throwing in Kashmir was
already going down' say the naysayers, the compulsion
of robbing banks is clearly indicative of the cash crunch
felt therein. Being foreign in origin and the global
players having an interest in it, Kashmir terrorism
cannot be stopped so easily.
6. International image:
Even if the implementation of the dictat didn't bring about good reporting internationally, the timing
of the announcement was not reported as bad. But then, let alone the timing, the Chinese official
paper The Global Times thought that the boldness of the act was unthinkable even in their one
party nation!
7. Benefits to the BJP:
With it being successful implementation dependent, in addition to the believable sweet
sloganeering of 'beat the corrupt guys', the act was a huge risk for the ruling BJP. Yes all parties
use black money; and cash for seats isn't uncommon. Therefore, all parties that are so used to
relying on black money will be affected and Indian politics will see better days. But then, almost in
an Orwellian way of some being more equal than others, some parties are more corrupt than
others. Fearing none, some even flaunt cash in the form of garlands. Being lesser of the evils, this
makes BJP, unlike some other cash starved parties, reap the benefit of the demonetisation.
Calculated announcement before the UP election, thus, can't be regarded as imperfect. Also the
associated, 'Only the corrupt parties are opposing demonetisation' disunites the opposition
attempting to unite against the BJP. In addition, the timing of it being around the American election
results, did lessen the hostile international caucus. Thus, BJP's gain cannot be discounted.
8. Symbolic benefit:
Almost as a no hoper, this act did nothing to bring cash from the foreign banks - as promised and
expected. In addition, even the new currency has entered the old black market, locally. But then,
surprisingly, almost as powerfully as saying 'from now on ..' in his invite to the SAARC leaders at
his oath taking ceremony, this dictat has powerfully aired Mr Modi's second salvo - 'from now on..' -
in the fight against corruption.
Terrorism
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