In another article titled, India’s Botched War on Cash' published soon after demonetisation, he had said that demonetisation was a policy failure.
After Nobel Laureate Amartya Sen’s comment that demonetisation is a “despotic action that has struck at the root of economy based on trust”‘, another Prof , this time of Tufts University, Bhaskar Chakravorty , in an article published yesterday in Harvard Business Review titled “Early lessons from India’s Demonetisation Experiment”, said that “four months have passed since demonetisation and the country has emerged with few obvious scars””. In another article titled, India’s Botched War on Cash’ published soon after demonetisation, he had said that demonetisation was a policy failure.
He said, although the impact on corruption has not been felt yet, but Prime Minister Narendra Modi’s government has been rewarded with victory in mid-term state-level elections and that is being seen as a “referendum on its unprecedented action”.
In another article titled, India’s Botched War on Cash’ he had said that demonetisation was a complete policy failure.
In an interesting analogy he further said,”short of any singing, dancing, and costume changes, this sequence could have been taken from Bollywood, a movie industry widely known for its fantastical flights of fancy”.
A few takeaways from his article on demonetisation are:
1. Demonetization Is Not the Best Tool to Root Out Corruption: On this he said, “public policy for rooting out corruption calls for a systemic approach, with carrots and sticks to motivate cultural, institutional, and behavioral change in the long term. Silver bullets, such as drastic demonetization, don’t work”.
2. Innovation and Creativity Emerged Around Digital Payments
3. Data Quality and Context Still Matter — a Lot
4.The Rise of the “Big Narrative” Continues