1. How Bibek Debroy countered Manmohan Singh and Kaushik Basu on demonetisation

How Bibek Debroy countered Manmohan Singh and Kaushik Basu on demonetisation

Niti Aayog member Bibek Debroy has slammed the critics of Modi government's demonetisation drive, including former PM Manmohan Singh and ex-World Bank chief economist Kaushik Basu.

By: | Published: November 28, 2016 1:28 PM
demonetisation, Bibek Debroy demonetisation, Bibek Debroy interview, demonetisation news Bibek Debroy said that Dr Manmohan Singh has been the PM for a decade and has more expertise in on the issues of loot and plunder.

Renowned economist and Niti Aayog member Bibek Debroy has slammed the critics of Modi government’s demonetisation drive, including former PM Manmohan Singh and ex-World Bank chief economist Kaushik Basu. In an interview to India Today, Debroy said that Dr Manmohan Singh has been the PM for a decade and has more expertise in on the issues of loot and plunder. “He (Manmohan Singh) has been prime minister for 10 years, he has far more expertise on organised loot and legalised plunder. So I would not like to comment on what he has said, let’s move on to the more substantive issue. I have a great deal of respect for him and and I have a great deal of respect for his expertise in those two expressions,” Debroy said.

His remarks came after the Manmohan Singh had in Parliament said that the Modi government’s demonetisation move is “organised loot, legalised plunder of the common people”. “…these measures convince me that the way this scheme has been implemented is a monumental management failure, and in fact, it is a case of organised loot, legalised plunder of the common people,” Manmohan Singh had said. Singh had also predicted that India’s GDP can decline by about 2% as a result of demonetisation and its poor implementation. Singh had also questioned the benefit of such a painful exercise.

Also read: Chidambaram on how he would have undertaken demonetisation had he been the FM

Countering that argument, Debroy said that the gains would not be limited to the amount of black money that would be rendered useless, but also extend to government’s massive revenue generation. This, Debroy said, would help the government spend massive amount of money on building public goods and making more public services available.

Debroy has also said that critics are unaware of the situation on ground, the extent of financial inclusion that has been undertaken by the Modi government, and how the revenue generated will help in enhancing public investment. Debroy told PTI that economists who live out of India normally do not have accesss to the latest data, and are hence more prone to drawing conclusions that may not hold true in the present situation. “They (economists living abroad) base their understanding essentially on reading English newspapers. Otherwise, how would they know? English language newspapers understood many things wrongly,” PTI quoted Debroy as saying.

Watch: Full interview of Bibek Debroy on demonetisation

Debroy’s statement came after Kaushik Basu’s remark that demonetisation was not ‘good economics’ and would cause great ‘collateral damage’ “Where does Dr Basu work now? He is based in US. I have a great deal of respect for him…That someone who is away from India may not necessarily be aware what is happening in India,” Debroy said, adding that with the PM Jan Dhan Yojana a lot of people now have access to the banking system – a fact that Debroy feels Basu may not be aware of.

The government’s move to withdraw the old Rs 500 and Rs 1000 notes from circulation and introduce new ones has divided economists, both domestic and global, into two camps – those who are calling it a bold step and others who are raising doubts over its benefits.

  1. R
    Rajan
    Nov 28, 2016 at 8:28 am
    He mentioned in the interview that Rs. 2,000 note was introduced since it would take 20 more time to count Rs. 100 of 20 denominations. This was tweeted and Raghuram Rajan has commented "A moron ?". Understand also that this economist Ph. D. degree was denied way back in 1981. He also mentioned in the India today interview that there is no job loss as all the construction workers are paid through bank. Even if they are paid through bank how will they withdraw money ? ic defense.
    Reply
    1. K
      Kuldip Singh
      Nov 28, 2016 at 11:28 pm
      People had died in long queues in front of the banks . You are justifying and propagating this is good move to control the black money. Why do not the Mody , get back the money which is parked in foreign banks . No wealthy citizen seen in queues .Mody's touts are favoring him Most well known economist in the world and Ex prime minister had call this action as loot .
      Reply
      1. M
        Mohmed
        Nov 28, 2016 at 9:34 am
        MMS is a duffer who allowed the Corrupt Sonia to loot the nation for ten years.He has to his credit ten years of acting as a puppet to an illiterate woman. Mr Basu of course is a respected economist living abroad and should have avoided making any statement.
        Reply
        1. S
          student
          Nov 28, 2016 at 8:28 am
          Debroy argued that , rs 2000 note was introduced because its easy to count than with 100 rs. Notes. So biggest change in indian economy was done so that people could count easily and Govt can print easily. STUPID decisions.
          Reply
          1. S
            student
            Nov 28, 2016 at 8:26 am
            all respect for Debroy is gone, cant be arrogant like leade, argue with good points not like politicians. They are based in US get info thru papers is cheap argument. Head of NITI AAYOG was in US for so many years , so whatever he wrote then was wrong ?
            Reply
            1. P
              Prasad K
              Nov 28, 2016 at 8:18 am
              Corrected as "indefensible"
              Reply
              1. P
                Prasad K
                Nov 28, 2016 at 8:17 am
                I saw the interview and Dr.Debroy was seen squirming and very uncomfortable. He simply could not defend the arguments and appeared like a bumbling economist, trying to defend the defensible!
                Reply
                1. M
                  Morphine
                  Nov 28, 2016 at 9:34 am
                  Manmohan Singh, the so called economist - finance minister has utilized all his intellect to do a great favor to Corrupt Gundhi's and at the same time meted out a great injustice to India as country and it's people by allowing humongous amount of corruption and organized loot of the country's resources during the UPA2 regime.The genius of Liberalization is rather PV Narasimha rao and definitely not MMS.The Entire Corrupt Political parties in India are utterly confused and clueless (shock & awe) even today so as in which way / side they should take a stand..
                  Reply
                  1. S
                    Sundaresan
                    Nov 28, 2016 at 3:26 pm
                    Is there anything like legalized per. Sorry if somebody is murdered or raped are there terms like legalized rape and legalized murder.
                    Reply
                    1. R
                      roby mani
                      Nov 29, 2016 at 5:30 am
                      No analysis , just generalized statements in line with what is expected of him from his bosses who is filling his pocket with new currencies exchanged for the old ones.
                      Reply
                      1. R
                        Rakesh Kumar
                        Nov 28, 2016 at 9:06 am
                        I expected some strong and relevant arguments from Debroy but was totally disappointed by his political statements. It is a shame that Narendra Modiji is surrounded by such mediocre peoples. God save this nation.
                        Reply
                        1. J
                          Jay
                          Nov 28, 2016 at 2:19 pm
                          The journey of an economist to an andh bhakt and boot licker. Obviously debroy cannot be trusted with his arguments because he has to take the side of his master. Ever heard of the slave turning against his master ? His comments on a former PM and a reputed economist world over clearly shows his political leanings that have taken over common sense and logical reasoning. For him Manmohan, kaushik basu, Raghuram Rajan... all are wrong ! Only he and his master - Modi are right in this world !
                          Reply
                          1. Indrajit Roychowdhury
                            Nov 28, 2016 at 9:16 am
                            It is understandable that mr Debroy will support the decision because the Niti Ayog is advising the PM. He mentions thst peiple living abroad do not understand ground situation, but the way the thing handled makes it clear that the aevisor to thr PM lives in a world that certainly not india. 20 days past 90percent ATM is not working. Time for PM to sack his advisors
                            Reply
                            1. R
                              Raji
                              Nov 29, 2016 at 5:25 pm
                              Beautifully and simply explained answers! Anybody with basic education can clear all the doubts about demonetization by watching this. Thanks India Today for asking relevant questions rather than a blame game!!
                              Reply
                              1. N
                                Nair
                                Nov 28, 2016 at 10:57 am
                                Collateral damage comment was a very generic statement made by a person of Mr/ Basu's stature, the long term benefits in terms of tax base expansion etc. far weigh the near term discomfort faced by all, the degree may vary from person to person.
                                Reply
                                1. S
                                  shans
                                  Nov 28, 2016 at 8:57 pm
                                  same logic, the one u mentioned, applies to our former PM too. his political leanings. isn't it?
                                  Reply
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