Clean up stash move flawed says expert

Hyderabad: Demonetisation is indeed “carpet bombing on people at large” opined Professor Praveen Jha, Centre for Economic Studies and Planning, Jawaharlal Nehru University.

In a discussion with Prof. A.K. Vasudeva Chary, Head, Department of Economics, Osmania University(OU) on demonetisation here at the Department of Communication & Journalism,(OU) on Friday, Prof. Jha said that the primary aim of the Government to demonetise and clean up the menace of black money was “flawed.

This move is a non-starter; he said and added that it is message to hoarders of black money. We will have to wait and watch on how well the message has reached such people.

Economists are on both sides of the argument. The government could have carried IT raids all over the country aggressively to unearth black money,” he pointed out.

The Indian economy is mostly cash driven and “techno literacy” is nowhere to be seen in the rural areas. Farmers are scarcely able to sell their agricultural produce and a recession like situation has been created.

Countering Prof Chary who stated that it was a temporary difficulty faced by people, Prof. Jha reacted sharply and cited that one bank serves the entire village and ATMS are not refilled with cash at regular intervals.

People living in rural areas are hard hit, he regretted Referring to an article in Huffington Post which reported 33 deaths from the date of announcement, he expressed displeasure and touted the move as a huge failure in terms of the background preparation. The claim of preparation is highly exaggerated as the “proof of the pudding is in the eating”.

There is chaos everywhere and mega cities like Mumbai, Delhi too are underprepared. Prof. Jha claimed that Prime Minister Narendra Modi and his team must have sought the views of various economists or economic advisors on the move and they should have been held accountable. If we look at the overall analysis of the economists from the global perspective this move has been described as flawed. ​

Government agencies generously say there is six percent of black money present and holding currencies are not black in nature.On being asked about the possible solutions, Prof Jha replied that the Government should have rolled back the decision but it seems to be in no mood to do so.

We are served with a new update on the deadlines and extensions. The Government is just trying to ease the situation which is not enough and he favoured more steps to mitigate the problems of the common man. (J-Hub)

By:Rana Ashish Chauhan & Sushma Nagaraju