What is the political logic behind the draconian move of demonetization? Of the series of bans by the RSS backed BJP government, the worst is the ban on currency notes. The 90 percent of the notes banned from the market. Topmost economists of the world who study demonetization suggest following conditions:
- Demonetise higher denomination notes (None of India’s demonetized notes was of the higher denominations compared to other currency)
- Demonetization is done in a phased manner. They recommend 5 years for phasing the currency.
- Demonetization is not advisable for the developing countries.
But the RSS/BJP government went for demonetization citing following reasons:
- Black money
- Fake currency
- Terror money
Lofty ideals, but none of them can be tackled with the demonetization, There are other ways to tackle this.
The result is:
- The growth rate reduced and economy slowed down
- Poor and lower castes became poorer and many lost their jobs
- Unorganised sector of economy and labour market collapsed
- More than 100 people lost their lives
- People lost trust in the Banking system
- Fake currency circulated in the market
The Government suddenly started talking about the cashless economy, which is impossible given the infrastructure India have within next 5 years at the least.
What will be the possible game plan of the RSS/BJP behind Demonetization?
- To stop BSP from coming to power in UP. BSP is the only ideological opposition to the Hindutva politics
- The RSS/BJP will pass over a large chunk of money to its Banias and crony capitalists like Adani and Ambani
- Dole out Rs. 1500 to the poor people for votes before 2019 elections under the Universal Basic Income scheme
- Use the money for next Lok Sabha elections.
The RSS/BJP is up for bringing Brahminical nation state by 2025 which will commemorate 100 years of the foundation of RSS. The progressives and democratic forces must be mindful of the current events and ill designs of the RSS/BJP.
Mangesh Dhaiwale, Human Rights Activist (Article was written before UP election 2017.)