Excelsior Correspondent
JAMMU, Nov 26: Secretary (publicity), Pradesh Congress Committee Nadeem Sharief Niaz has said that the recent decision of Govt at the Centre to demonetize higher denomination which is 86% of total currency can lead to economic crisis due to the veiled corruption involved in demonetization.
The shortage of liquidity is showing significant constraint on household, agriculture , micro and major business establishments, medical facilities, tourism, trade and education. The methods adopted to implement demonetization has forced many under privileged to commit suicide.
Niaz said demonetization scheme seems to be a replica of 1978 demonetization carried by Morarji Desai the then PM , at a time when higher denomination currency was only 2-3% of total currency and resulted a complete failure at that time . The so called change has pushed economy to turmoil now that 86% of higher denomination currency has been declared non- legal tender.
There are other countries also who had adopted the same methods of demonetization in past which later resulted only disaster to their nations like first Soviet Union -under Mikhail Gorbachev in January 1991. The reform failed to halt inflation and instead served mainly to accelerate a slide in public confidence in the Soviet Government. Second North Korea – In 2010, third Nigeria and fourth Myanmar.
In 1987, Myanmar’s military invalidated as much as 80 percent of the value of money in circulation. It was directed at curbing the black market. One result was the first student demonstrations in years. Deepening economic unease helped trigger mass protests across the nation, the following year that led to a government crackdown that killed thousands of people.
NDA Govt has attempted to flush liquidity which if not brought back into system in time can prove disaster to economy of nation . Although PM has assured nation that issues faced by common man will be resolved by December 31, 2016 and liquidity will flow in market without any inconvenience to public. But how, is it possible to print currency worth Rs 14 lakh corers in just one and a half month when printing press of RBI doesn’t have that much capacity. If the whole exercise takes many months to complete, there is certainly an apprehension of recession.
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