Arun Kumar

Arun Kumar

Arun Kumar, Malcolm S Adiseshiah Chair Professor, Institute of Social Sciences, New Delhi and author of ‘Indian Economy’s Greatest Crisis: Impact of the Coronavirus and the Road Ahead‘.
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RBI Affidavit Obfuscates rather than Clarifying

The government affidavit filed on November 16 justified demonetization by claiming that it was a part of a bigger policy push to digitize and formalize the economy – in its view a beneficial step. The affidavit, in paragraph 15 justifies the decision to demonetize the large denomination currency notes by stating that it was a “well-considered decision” taken after “extensive consultation with the Reserve Bank of India (‘RBI’) and advanced preparation”. The implication is that if the decision was wrong, it is the RBI’s (the expert’s) fault.

Discouraging Debates Dilutes Democracy

The strength of democracy is that debate and dialogue provide society with a self-corrective mechanism. The existence of strong opposition and policymakers to consider other points of view help devise more holistic policies. The constant questioning prevents complacency from setting in. Demonetisation was another policy that led to a major disaster since there was little consultation and the parliament was bypassed. The Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC) are hanging fire, causing huge uncertainty. The farm Bills rammed through parliament without much discussion and were withdrawn only after a year-long agitation and disruption.

Impact of Worker’s Migration on Society and Economy

Given the high share of its young population, India has a huge potential that is being wasted due to the inability of its policymakers to set the right policies. Potentially, many workers in the population can support the non-workers—the young and the elderly—and the economy can grow faster.

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