DESPOTIC CRITICISM
Despotic criticism
This
refers to the report “Notes withdrawal, a despotic action: Amartya Sen”
(The Hindu Business Line, December 1). Nobel Laureate Amartya Sen has not added to his glory by
describing demonetization of high value notes by India as a “despotic action”.
Stretching the argument, any government action, anywhere in the world can be
alleged to be ‘despotic’.
Demonetization
has been used as a tool in currency management in India and elsewhere in the
world also in the past. This time around (demonetization announcement by Prime
Minister Modi on November 8, 2016), India really did not ‘demonetize’ the Rs500
and Rs1000 notes in the strict sense of the word demonetization. Leaving the
sanctity of the promise and the government guarantee on the currency notes in
tact, it was announced that these notes will not be ‘legal tender’ from the
midnight of November 8, 2016. There is substance in the criticism that backward
and forward linkages were not perfectly tied up by GOI and RBI before making
the crucial announcement and going ahead with the implementation. These related
to sucking out high denomination notes from semi-urban and rural areas in
advance, increasing supply of lower denomination currency across the country,
readying ATMs for handling new notes and having a monitoring mechanism overseeing
currency distribution across geographies. But, such lapses have been, by and
large, condoned by the people of India who have taken the measure in right
spirit, recognizing the triple objectives of fighting black money, fake
currency and influence of high denomination currency stock on terrorism.
The
other subjects, namely capitalism and ‘trust’ mentioned by Sen have wider
connotations and perhaps he is more aware than us that capitalists are very
selective while handling issues like trust and human rights.
M G Warrier,
Mumbai
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