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Discussion or discourse on vital issues affecting India has undergone radical change with the BJP ascending to power. Our ability as society to discuss issues on merits lost in the new narrative of patriotism. Any criticism on any action or decision of Government has been dubbed as unpatriotic and those guys as traitors. India is democracy and the foundations of the democracy rests on plurality, dissent and inclusion. India is complex country with many ideologies, regional peculiarities and yet a vibrant democracy. The roots of democracy is relentlessly attacked with new narrative which is dangerous trend. Take the case of demonetization, any criticism will be pounced upon and labelled as anti- government or retrograde. Watch the misery of common man, daily wage earner, senior citizens and women standing in endless queues and yet not in a position to either exchange or withdraw money because of inadequate availability of currency. The irony is that, people have to wait and beg to take their legitimately earned money. Sowing season and farmers have no money to pay either to seeds, agricultural labour and other expenses. None of these guys are hoarders of black money. We all know that rural banks are life line in villages and very establishment of these banks are with an idea to facilitate agriculture and farmers but they were not allowed to exchange notes and this has caused untold misery to farmers. Demonetization in country like India where banking system is not penetrated to village’s level and where 50% people does not have bank accounts. India is more of cash economy and this kind of move requires tremendous amount of planning and execution, which is total failure in this case. Ad-hoc measures announced from time to time are so confusing, government has no idea of what their actions will pan out in the field. One step forward and one step backward, God if any CEO takes such decision.  Board will sack him immediately. Unfortunately we have no such facility in this case. Lack of coherent strategy will hurt growth. We have seen demonetization has impacted retail, service and manufacturing industries and jobs are being lost owing non-availability of cash to the employees. Already rating agencies and Stock exchange has given thumbs down to the move. Serpentine queues at banks and worry looking faces in rural areas are telling the impact on common man.  I have never seen so called rich people in queues and they have invented new channels to convert their black money. It is like punishing whole class for Teachers inability to identify mischievous guy. Ruchir Sharma a noted economist and global investor feels this move will not eradicate black money, at best it can marginally reduce it. Many economists are of the view that in growth economy like India this will lead to either hyperinflation or deflation. Apart from untold misery BJP Government has unleashed on hapless citizens, they have polarized the society into pro and anti-government giving a new narrative of patriotic colour. Social fabric is torn with callousness and for political ends. In civil society discourse is vital and muzzling the dissent and contrarian views is fraught with much bigger ramifications. If we allow such neo-nationalistic forces, then India is heading for totalitarian regime. Another biggest issue is parliamentary democracy is the unwillingness of the elected Prime Minister to talk to his fellow parliamentarians about the decision he has taken and the intent behind that.

I am not an economist to tell with certitude whether this demonetization will result in eradication of black money or not but it has created untold misery to common man. Had government prudent enough and done some homework and potential problem analysis things would have been much better. After two successive draught years, farmers are hoping to do better with reasonably good monsoon but their hopes are dashed with demonetization move.

# politics

Subramanyam Degala

Professor at International School of Business & Media