Demonetisation is a political move

Hanamkonda: Political considerations played key role than any economic rules behind the Union government’s recent demonetisation move, opined noted social scientist Prof G Haragopal.

Misinformation being spread on the so called benefits of the demonetisation with national media controlled by corporate houses actively engaged in the process. If the corporate forces are hurt by PM Narandra Modi’s decision, he would have been under crossfire now from corporate powers, he said.

Demonetisation is just a diversion tactic. Modi promised to credit Rs 15 lakh into the accounts of the public by bringing back black money stashed away in foreign banks.

Now his party is focusing on winning elections in Uttar Pradesh and it needed a poll plank to rely on, Prof Haragopal explained. This, he said while delivering the first memorial lecture of late C Sivarama Krishna Rao, an economics professor, on the topic ‘Demonetisation Effects on Indian Economy’ at Kakatiya University in Hanamkonda on Monday.

He felt that the real issue the government needed to address is imbalances in economic development of citizens in the country. Discussions should take place why there are still super rich, poor and jobless youth, why hunger and poverty is still lingering.

Real estate dealings are the main source of black money. In Hyderabad, one lakh acres land is in the hands of just 16 persons and one per cent of the superrich in the county controls nation’s wealth. Currency is not the only source of black money; it is stacked away in the form of gold, land, diamonds and others, he added.

‘What is the purpose of taxes and budget? The Union government is claiming of pooling up about Rs 3 lakh crore due to demonetisation. I demand the government to tell the people what it is going to with the money,’ he asserted.

Prof Haragopal expressed qualms over the claims by Union and State governments in making India and its states creating cashless and digital economy. 70 per cent of Indian economy is informal and cash-centric economy and the country’s economy is still a pre-capitalist of nature.

Now the government is trying to move towards global-capitalist economy by emulating the US model, which led to severe financial crisis in that country. Three former governors of the RBI have opposed the proposal of demonetisation.

The professor lauded the patience of the public in dealing with demonetisation blues. The public, who don’t have any connection with black money, are now in the streets to convert their money into white. Even after one month there are no signs of relief from the side effects of the Centre’s move and situation is vague.

He asked the students and intellectuals to educate the public about the real reasons behind the government’s demonetisation move so that the government might not resort to such actions in the future.

Referring to the life and works of Prof Sivarama Krishna Rao, Prof Haragopal described him as a great human being evolved beyond his times and belongs to a future society of evolved humans. Everyone should emulate his life style.

BR Ambedkar Open University Vice-Chancellor Prof K Seetama Rao, KU Vice-Chancellor Prof R Sayanna, Shatavahana University former Vice-Chancellor Prof Md Iqbal Ali and the head of KU economics B Suresh Lal were present.