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Demonetization – Digitalization – Democratization

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April 30, 2014
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May 3, 2014

The surgical strike on currency ban has created one of the greatest debate of our time ever since Independence. Political and Economist are divided on two-way opinion, like any other debate, demonetization to some is like a demon, to others, it could be beginning of true democracy of equality – bridging gap between having and have-nots’

I have a very different opinion to share – far away from- what Political class or Economist are analyzing.I firmly believe, Demonetization is stepped ahead or towards Digitalization or cashless economy- finally destined to deliver true Democracy of equality. Economy, where all transaction will be either enabled by plastic, e wallet or some e gateways or even texting (sms) or sharing mere Adhar No. We are talking about real time transaction, where it can be track-n-traced and therefore zero chance of black economy. Imagine the compounding effect in a year for an economy, like India due to its sheer volume and size.

I ‘m not going to talk about social impact of this initiative, such as anti social activities, terrorism, bribing etc. neither am I interested to talk about Fake Currency eradication and its impact on economy but a very different interesting angle. An angle around which politics, power and people revolves. Yes my friend, Modi has polarized entire country but this time it’s not around caste or Hinduthva but around rich and poor, voting and nonvoting class. Through this initiative he is going to win over every poor citizen of this country for ever,making every other political party practically defunct.

Any which case, he has already made many of them invertebrate by ‘Note Ban’- actually it was intelligently ‘Vote Ban’.Political class ever since Independence replaced monarchy with pseudo democracy by buying vote before election. Modi with his master stoke has created a New Normal, where by effective use of technology and fear factor of IT is trying to bridge the gap between poor and rich. In a digital economy if nothing incremental least entire amount of daily wage goes to BPL class and that alone can create huge impact to his/her purchasing power or livelihood.

We don’t know exactly – what’s there for us- may be good- may be worse but one thing is for sure Modi is not fool and this entire exercise is unilaterally focused to make him invincible, in simple words he is moving towards his ambition of becoming a benevolent dictator with change in world order this may be a reality and writing in the wall – that political class has understood and hence creating huge furor. This may not be very good news for middle working class but certainly, hay days are ahead for poor as they get to see true democracy.

Paradigm Shift in Indian Socio-Economic Fabric:

F or the first time, rich man and the poor man stood in lines to convert notes- as if this was another quit India movement! Yes, quit from bribery, corruption, black economy, hoarding, fake currency terrorism and goonda raj. In fact, Dawn newspaper from Pakistan reported that Fake currency kingpin, Javed Khanani died immediately after note ban imposition- resulting into huge loss and as a result he committed suicide. Similarly, there was sudden silence and calm in the valley after many months of protest and violence- such was far-reaching of Demonetization. Today, terrorist in the valley are dry and hence stopped activities funded through this black money channel- if this is not a change for good as some political parties fry foul, then what is that they were expecting. Political parties, like Trinomial to maintain parallel private Goonda army, had to shell out 500 Cr. in a month or more, now that has stopped their leader is creating ruckus and protest. Similarly, election funding in UP, Punjab is going to have a big impact as cash stocked for funding is now waste. Their basic political funding model has changed and in the war room, they need to revisit new strategies.

To me, the biggest change is that of the digital mindset of common man and rise of Paytm and other digital gateways, which is only going arrest issue of the black economy and parallel channel of Benami notes and property. This is certainly going to have fundamental change – we perceive corruption. Imagine a large country and world fastest growing economy even a small.

Lastly, I believe, this is going to start a new era of democracy by reaching out to poorest of the poor, equitable distribution of wealth through Jan Dhan Yojana and optimizing wealth distribution. In a true democracy- we get to see the free and fair election and certain fairness of wealth distribution and wages, which is now possible through direct digital payment, otherwise, meagerly it reached to lowest person in the PDS chain. Therefore demonetization is a true step towards digitalization and democratization of India by 2020! And should not be construed as a single measure to arrest black money or corruption. The bye product benefits are many. Let us see some of these benefits as perceived by unbiased foreign media – Huffington post in its article below… Huffington Post on Demonetization Masterstroke and its impacts

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