Currency Swap and Compassion
Yes, I understand that only 1% of Indians pay their taxes in full. Yes, I understand that black money creates a parallel economy comparable in size to the official economy, and out of the control of the government. Yes, I understand that if you are a capable leader you can not tolerate it.
But what is your priority as a leader — to help your fellow citizens or is it self-glorification? “You expect substantial reforms from me and I deliver beyond all your expectations!”
What I do not understand is why the first major step to counter black money economy, the withdrawal of high-denomination notes and a currency swap announced last week, makes the whole population suffer, not the corrupt few only. The artificially created currency crunch (it’s not an emergency, like a tornado, it’s a man-made political step) makes all Indians desperate: they do not have cash to pay for staple food and services, and there is more and more news of people dying of starvation. People queue for hours at the banks and post offices to exchange Rs 2,000 (around $30), a daily limit, but the queues move very very slowly because of the lack of adequate facilities and the huge amount of paper work needed to get this cash. People should spend the day in aggressive queues and get this 2,000 if they are lucky — but then they can not pay for their food at kirana (small local) shops because kirana-wallahs (shop owners) do not have currency to give you change. Why can’t you arrange the exchange of a small sum of money without any hassle, just in 15 seconds? Yes, there is a risk that black barons drive a huge crowd of dependents to exchange notes for them. But the exposure is still limited and is not worth mass suffering, for sure.
We say in Russia if you cut forest, you do not care about chips — we also do not have the gene of compassion in our blood. But what is this forest — for whom are you doing these reforms?
And about the method of cover bombing — can’t you start with something less dramatic — say, send CBI (Central Bureau of Investigations) agents to check the tax declarations of owners of expensive real estate (all suspects are well known for sure). And other more targeted measures. Less dramatic effect but also considerably fewer sufferings for the innocent many.
A lot of people applaud Modi’s decisiveness. They say that apart from crushing the core of the black economy, it will give a boost to the digital economy in India. Hopefully, all these supporters are happy owners of the credit cards and can survive by buying food at the shops, which accept cards them for payments. But what about those who perished because of this decisiveness? Who has the moral power to estimate what you can sacrifice for a prudent economic agenda?
