People are always willing to sacrifice for their country as long as there is a just and noble cause. But a leader should know when to ask for this sacrifice since in that decision lies the making of a humane and sensitive leader. A leader loses credibility if he asks for this sacrifice for mistakes committed by him and for irrelevant issues. At the same time if a leader admits his mistakes either committed directly by him or by his government in the event this leader holds the reins of office and apologises for these mistakes then the stature of the leader is greatly enhanced in the eyes of his people. It is not important that the leader compensates the people affected by the mistakes but if that is done then the belief of the people in the leader is cemented further. It is important for a leader to empathise with the people and just not mouth pithy words and shed crocodile tears. He should also not take people for granted. We will touch upon these premises in the context of PM Narendra Modi unleashing the demon of demonetisation on the country on Nov 8, 2016.
The initial objectives of demonetisation were to fight black money, corruption, counterfeiting, terror and drug funding. Lately with the first two objectives of black money and corruption not being achieved, the subsidiary aims of counterfeiting, terror and drug funding are being touted as being hit badly if not eliminated. Further the PM’s demonetisation narrative is yet again emphasising that it empowers the poor. How it does that, is not clear? With the bungling of the demonetisation exercise it is the poor and the lesser privileged who have got the most affected. Modi had said in the initial days after Nov 8, 2016 that the rich are spending sleepless nights and the poor are sleeping the sleep of the comfortable. But with the cash shortage it turned out exactly the opposite with the poor spending sleepless nights more so because of their empty stomachs. The jargon of benefiting the poor is just like election promises say it for now, the dummies are not going to come back and question you later. Even, if they do, we will handle it with another story. This approach was also seen in Modi’s speech on New Year’s eve where announcements were made for benefits which are not significant and for schemes which are not operative and with confusing guidelines for implementation. Cash shortage like a virus has spread everywhere from the leather goods fabrication sweatshops in Dharavi to the bangle makers of Firozepur to the farmers mandis that sell produce across the country to the small industries that depend on cash to get their production materials to the micro finance agencies that fund household industries etc. Daily wage workers were hit and food and commodity markets slack with the trading community reporting sales had fallen by more than 50% in Nov 2016. Apart from the realty sector the organised industry sector has been hit with FMCG and the auto industry taking the major brunt.
Thus you will see that Modi has been talking in multiple voices at multiple times. Then there is the emphasis on a cashless or less-cash economy which is nothing but an attempt to deflect the attention from the failure of the demonetisation exercise. The problem is that no one knows what Modi is seeing in the demonetisation exercise irrespective of what he has been saying. And the people within the BJP are blinkered and they can it seems see only Modi. Thus we are in a crisis created by Modi on a program which has many confusing objectives, which any administrative or management person will tell you is a recipe for disaster. At the same time those pointing out the difficulties of the people because of the cash shortage are being branded as speaking for the black money hoarders and also lacking in patriotism. For pointing out that someone is making a hash of an economic measure being called anti-national is a first by any standards. In fact the words sacred and patriotism are being bandied about liberally by the BJP which is devaluing their importance in our way of life. As commented above on patriotism, to call the the demonetisation exercise a ‘sacred’ task is insulting religion and in turn our gods. These are not indicators of a cultured and civilised society.
On the issue of demonetisation as it is coming out now it was Narendra Modi’s decision, which he has admitted even earlier, the RBI was not consulted and that institution used to just ratify the decision. Even the Niti Aayog was not consulted though Arvind Panagariya, its Vice Chairman, believes that it advises the government on major policy matters. Why was it isolated? On such a major decision when you were pulling out 87% of currency out of circulation, is it not necessary for a leader to consult the experts on monetary and economic matters and arrive at a considered decision? By not doing this Modi is laying himself open to the charge of being insensitive. In misplaced bravado the person moves ahead in the belief – Dekha Jayega. Jo Bhi Hoga Dekh Lenge! This is disastrous as we have seen in the implementation of the demonetisation exercise in the country. If the demonetisation was so important for Modi to do then if by withdrawing 87% of the currency it has created so much problems then he could as well have pulled out the remaining 13% and it would not have added much more problems than those created in the existing situation. Thus you will see there is a serious doubt on Narendra Modi’s leadership abilities, his balanced judgment and his willingness to stand up and accept responsibility for his own actions. All this from a man who had promised minimum government and maximum governance in 2014 when he came to power while now it is completely the opposite.
There are benefits in Modi’s proposals like demonetisation but it has to be implemented right. Like increasing people that are in the I-T net to boost revenues which can then be used for development and to lessen I-T rates for those who pay tax.
(Srinivas Kamat is a retired electronics engineer)
