Posts Tagged ‘equity’
The idea of removing large value currency due to large scale counterfeiting is a good thing. I also agree that it is important to make it a surprise move. The logistics of the currency exchange in a country with a population and geography as India is a big challenge that almost no one has dared to undertake in the recent past. So irrespective of the merits of the exercise, kudos to the powers that are for taking on a challenge that most would have shied away from.
The first impact of any news among people living on the edge is almost always the same – panic. This is true not just in rural India, it is true even for the most urban communities of the most developed countries (think reactions to news of terrorist attacks, storms, hurricanes, etc.). And when the currency exchange bomb was dropped, the response was no different. People were scampering from pillar to post to convert the few 500 and 1000 rupee notes they have to the new/fresh currency. And they still are, even after a week.
Most day to day needs would cost around 100 to 200 rupees (thankfully!!). So what does one do with the new 2000 rupee notes when nobody is ready to part with the few smaller denomination currencies they have? So now they are scampering around for new currencies of the large denominations AND for smaller denomination older currencies.
A few simple questions about the implementation of the currency exchange policy. Not whether the currency exchange is warranted; Not Whether it will achieve its objectives. Just on Planning. Execution. Responding. :
- When you are rolling back 500 and 1000 rupee notes, would you not want to make sure that the smaller value new currency reaches the people first rather than the larger value one?
- When you are planning a roll back of the 500 and 1000 rupee notes, could a whole load of 100 rupee notes not have been printed and dispatched to currency exchange centers to service the obviously expected rush for legal currency to transact business with?
- What is the number of people estimated to land at a currency exchange center in an hour? Had sufficient currency reached these centers even a few days after the announcement? Were there sufficient people working at these centers to service the rush? Could some other personnel not have been pulled in to do assist in this work?
- How are you any different when the people who were already being crushed under the wheels of ‘development’ get crushed further ? (access and ability to use cash is what defines the poor !!)
- Could you not have chosen a better time than the planting period for the rabi crop? Ok, you missed it. But when you created exceptions for transport agencies (and later on added) utility companies and other amenities but EVEN in that list you do not include agri input vendors, who are your advisors? what news are you reading? Who does your heart blead for??
Taking on a challenge: brave
Not preparing adequately : unwise, foolhardy.
Not taking the plight of small traders, farmers, labourers : callous.
Responding to cries of the middle class : playing to the gallery.