National
Demonetisation may increase economic inequalities: Manmohan Singh
New Delhi, Nov 6 (IANS) Former Prime Minister Manmohan Singh has called demonetisation a “catastrophic economic policy” that may aggravate inequalities and prove to be a “far greater social malaise” in a diverse country like India, and asked Prime Minister Narendra Modi to accept the “blunder” and work towards a consensus to rebuild the economy.
“Demonetisation has proved to be a catastrophic economic policy. The damage it has caused has been multiple fold – economic, social, reputational and institutional. Slowing GDP is merely one indicator of the economic damage. Its impact on the weaker sections of our society and business is far more damaging than any economic indicator can reveal,” he told bloombergquint.com.
The former Prime Minister expressed his concern regarding the loss of jobs in the small and medium enterprises sector following the government’s November 8, 2016 demonetisation decision. He also emphasised the exacerbating impact that it may have on economic inequality.
“One immediate manifestation of the damage has been on jobs. Three-quarters of non-agriculture employment in our country is in the small and medium enterprises sector. This sector has been hit the hardest due to demonetisation. Therefore, jobs have been lost and new jobs are not being created.
“I also worry about the longer term impact of demonetisation. Headline GDP may well start to show an improvement after the recent lows. But rising inequality has been a constant threat to our nature of economic development. Demonetisation may exacerbate such inequalities which can be harder to rectify in the future. In such a diverse country such as ours, inequality can prove to be a far greater social malaise than in other homogeneous nations.”
Prime Minister Narendra Modi, while announcing the decision on the night of November 8 last year, said his government was spiking 1,000 and 500 rupee notes to curb black money, corruption, counterfiet currency and terror funding.
He claimed later that the move was aimed at reducing cash-based transactions and nudge the economy towards digital payments.
Manmohan Singh, a noted economist, said while these objectives were “laudable pursuits”, he emphasized that the government needed to “get our economic priorities right”.
“It is unclear that these goals of cashless economy will indeed help small enterprises become larger and achieve scale efficiencies. That should be our priority.”
Manmohan Singh was among the first to predict that demonetisation may lead to decline in India’s GDP growth and loss of jobs.
Asked if he felt vindicated about the warnings he had sounded, he said it was not about vindication.
“I strongly feel the time for politicking over demonetisation is over. It is time the Prime Minister graciously acknowledges the blunder and seeks support from all to rebuild our economy. There come certain moments in a democracy’s history when economics should take precedence over politics.
“It is one such moment now in India. We must put the nation above all politics and strive to seek solutions to our challenges of jobless and unequal economic growth. These are massive challenges that need creative and consensual policy solutions. So, it is no longer about whether I was right or wrong about the impact of demonetisation.”
Commenting on whether efforts to bring India’s vast informal economy into the tax net via demonetisation and the Goods and Services Tax, Manmohan Singh said: “The means is as important as the ends” and the ends could not be achieved “through coercion or threats or raids which can be counter-productive”.
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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