FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
Modi and demonetisation: Can he really win the battle against corruption?
Posted:Feb 11, 2017
 
Print
Share
  
increase Font size decrease Font size
 
 
 by N.S. Venkataraman
 
When Indian Prime Minister Narendra Modi announced demonetisation on November 8, 2016, the entire country was caught unaware and was shocked, not knowing what would be the outcome.  Many critics predicted that demonetisation would destabilise the economy, lead to loss of jobs and there would be riots.
 
Several international journals and critics were also surprised that the Prime Minister of a large populated country like India could take such a bold  decision, with 30 per cent of the country’s  population consisting of daily wage earners  or belonging to lower income group and 80 per cent of transactions in the country being carried out in cash. Economists and political observers across the world have been following the events in India with great interest and scrutiny.
 
Now, three months after demonetisation, things have become nearly normal in the country and the doomsayers are eating their words. No riots or serious disturbances took place anywhere, reflecting the fact that majority of the common man welcomed the initiative of Prime Minister Modi, in spite of the inconvenience experienced by them.
 
What is noteworthy is the fact that the common man in India have been hoping against hope that any Prime Minister would take some strong steps to curb black money and wipe out corruption in the country. People believed that Modi’s objective in ordering demonetisation was positive and praiseworthy and they further thought that  Modi’s promises are genuine.
 
Many impartial observers across the world now wonder as to whether any other Prime Minister in India or government in any other developing country could have issued such massive demonetisation order and survived the wrath of the people, who were subjected to considerable hardships due to lack of cash for transaction.
 
Prime Minister Modi has come out of the acid test, winning admiration all round.
 
Prime Minister Modi has been repeatedly saying that demonetisation is only the first step in his onslaught against corruption and black money in the country. The people, by and large, have accepted this statement at face value and have supported him. They are now looking forward to know as to what further step Modi  would initiate to take his  anti-corruption  drive  to  the logical end.
 
The opposition parties and pledged critics of Modi are now saying that demonetisation will not drive out black money and it would again start generating and Modi cannot stop it.  Modi has to prove his critics wrong and people want him to prove it effectively.
 
Obviously, people are in a hurry to see the results of demonetisation. They want corrupt people to be hauled up and punished effectively to create fear amongst the corrupt and dishonest individuals and groups.
 
The problem for Modi is that the government machinery at his disposal is itself largely corrupt. This has become fully evident when it was found during the peak period of the demonetisation exercise that several bank officials themselves colluded with the black money holders and helped them convert black money into white.  Some of them have been caught but more may have remained undetected so far.
 
Another problem for Modi is the slow progress of judicial proceedings in dealing with corruption cases and the capability of the corrupt people and black money holders to circumvent the law or misinterpret the law with the help of highly skilled lawyers, some of whom are politicians themselves.
 
The entire country, including the critics and pledged admirers, are closely watching the next step of Modi. The anxiety of the anti-corruption crusaders is whether the challenges before Modi in continuing his battle against corruption would become too formidable for him to tackle.  
 
(N.S. Venkataraman is Trustee of Chennai-based Non-Profit Organisation Nandini Voice for the Deprived. Comments and suggestions on this article can be sent to editor@spsindia.in)
 
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
India's successful launch of putting a record 104 satellites into orbit is a wake-up call for China's commercial space industry which has a lot to learn from New Delhi's frugal space programme, a Chinese government mouthpiece that publishes in English said in one of its rare editorials in which it commended an Indian action
 
read-more
Having made their mark in international cricket, two players from the Afghan national cricket team have been plugged into a team that plays the pompous and exuberant Indian Premier League, writes Chayanika Saxena.
 
read-more
spotlight image For a Dongria child, the schooling process not only displaces him of the community and the land but also displaces him from his own way of seeking truth i.e through nature, writes Rajaraman Sundaresan for South Asia Monitor.
 
read-more
Society for Policy Studies in association with India Habitat Centre invites you to a lecture in the Changing Asia Series by Dr.Pratap Bhanu Mehta, President and Chief Executive, Centre for Policy Research on Asia: Hope for the Future or Prisoner of the Past?    ...
 
read-more
spotlight image The sanctions-only approach toward North Korea spearheaded by the United States has been a conspicuous failure, encouraging the reclusive nation to rapidly advance its nuclear and missile programmes.
 
read-more
China bluntly warned that if the 'One China' principle is compromised or disrupted, the sound and steady growth of the bilateral relationship, as well as bilateral cooperation in major fields, would be out of question, writes Dr. Sudhanshu Tripathi for South Asia Monitor.
 
read-more
Egypt, under President Abdel Fattah el-Sisi, is fast transforming into a “security State”. He is wresting control of all crucial offices of the Government and he seems to trust nobody, except his parent organisation i.e. the Army.  
 
read-more
The eruption of militancy in the Kashmir valley in 1989 and the subsequent terrorism has been long seen as an internal political issue, exploited by the ISI in cahoots with the All Parties Hurriyat Conference (AHPC) in an attempt to dismember J&K from India.  The eruption of militancy in the Kashmir valley in 1989 and
 
read-more
Column-image

India remians the inflexible bête-noir for Pakistan, yet there are few books by Indian authors that have sought to interpret the prodigal neighbour in a holistic, informed and empathetic manner.

 
Column-image

The line that Mortimer Durand drew across a small map in 1893 has bled the Pashtun heart ever since. More than a century later both sides of that line remain restless. But the mystery behind what actually happened on 12 November 1893 has never ...

 
Column-image

What went wrong for the West in Afghanistan? Why couldn't a global coalition led by the world's preeminent military and economic power defeat "a bunch of farmers in plastic sandals on dirt bikes" in a conflict that outlasted b...

 
Column-image

What will be Pakistan's fate? Acts of commission or omission by itself, in/by neighbours, and superpowers far and near have led the nuclear-armed country at a strategic Asian crossroads to emerge as a serious regional and global concern whi...

 
Column-image

Some South African generals, allied with the British forces, sought segregation from the enlisted men, all blacks, after being taken prisoners of war. The surprised German commander told them firmly that they would have to share the same quarte...

 
Subscribe to our newsletter
Archive