By Antony Cony, Karkala

Mangaluru, Dec 30: Year 2016 is on the verge of completion. Usually, it’s a year-end tendency where one is trying to assess oneself; one's job, business, relationships, achievements, failures etc. The same trend is also followed with companies, government sectors to evaluate one's own performances, GDP growth etc. This kind of evaluation can frankly be reviewed on a positive and negative note. Such evaluation at times is expressed through the proverbial phrase 'Is the glass half-full or half-empty? The standard 'glass half-full or half-empty' saying is not only commonly used to emphasize the difference between positive (optimism) and negative ([essimism) thinking but also on how different people analyse the similar case in a different philosophical way.

The positivist opine: "It does not matter if the glass is half-empty or half-full. What matters is the ability and alacrity with which we raise it to a successful something or someone".

The negativist says: "Glass is half empty. It does not matter as long as glass is not full, outshining the glass half-full advantages".

The libertarian views: "In a free country, it’s all about human agency; everyone is free to make or purchase their own glass, fill it with what they like, and see it as they please".

The authoritarian rules that: "I am the one who decides whether you can see the glass as half-full or half-empty. Under me, seeing it either way is not a matter of free will and personal choice".

Announcing demonetisation (DM), on November 8, PM Modi had declared that "The aim behind the government’s action was to combat corruption, tax cheating, counterfeiting, and terrorism. Eliminating large denominations makes it harder to hide large amounts of cash. For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development. To break the grip of corruption and black money, we have decided that the currency notes Rs 500 and Rs 1,000 presently in use will no longer be legal tender from midnight tonight." Finance Minister Arun Jaitley added: "The goal of this is to clean transactions; clean money. Same move complements country’s Swachh Bharat Abhiyan".

It would be interesting to draw an analogy between demonetisation and the phrase "is the glass half-empty or half-full" ? On a positive note, many acclaimed demonetisation a "Masterstroke". Some said, "demonetisation move could change the face of the Indian economy". Others said, "The Demon of corruption is somewhat going to strangle". Without any hesitation, almost all agree with those opinions but not with its implementation part. Implementation of demonetisation can be best concluded in one sentence that ‘when the government withdrew 86% of liquidity from the economy overnight, it created chaos, confusion, long lines outside banks and even loss of life. General opinion was that this was 'an experiment with the life of the poor’. Philosophically it is tempting to ask "Is the glass half-full or half-empty"?

On the face of it, the intention of PM Modi is very prudent. Almost every honest Indians is supporting PM Modi’s move despite foreseeing relentless hardships. Further, on November 13, PM Modi had sought 50 days from the public to tide over the hardships post the demonetisation. As 50 days are almost up, all eyes are once again on PM Modi. 'Has it worked or will it work?' is the million dollar question.

"Black money is not synonymous with corruption; it is rather one of several symptoms of corruption," noted Rajesh Chakrabarti, professor and executive vice dean of the Jindal Global Business School at Jindal Global University. Pointing out that only a small percentage (by some estimates as low as less than 6%) of the unaccounted wealth is held in cash, Chakrabarti says: "This intervention is a one-time draining of this current stock of black money but unless the root causes of corruption are removed, corruption will continue. It is sort of like a dialysis, more of a short term cleaning up than a solution of the problem. It needs to be repeated periodically."Chief Economist and Senior Vice President of the World Bank, KaushikBasu, in a New York Times op-ed titled, "In India, Black Money Makes for Bad Policy," has strongly criticized the policy, rightly pointing out that it’s "mostly hurting people who aren’t its intended targets." According to him, demonetisation will put only a temporary dent in corruption, if even that, and it may rock the entire economy.

I feel root causes of corruption are many fold, some of which are perfectly associated with black philosophies since ages. Black philosophies such as black wealth (from generations), black practices (corporates, bureaucrats, politician’s, super rich businessmen etc.), black life(benami), black media, black networks, etc. There are people who have made fortunes (as immovable property) in terms of buildings, lands, gold hoarding, fake trusts and NGOs. Last week Govt cancelled the license of 11,319 NGOs on under the Foreign Contribution Regulation Act, 2010. It is not easy to demolish such practices by single masterstroke of demonetisation. Such centuries old unethical practices can’t be cured completely but can be controlled. There is a huge inefficiency in the governmental system since almost 70 years which has been wasting resources and breeding corruption and black money. If people in authority get hold of proper auditing of government expenditures, its impact may help government to reduce taxes and ease the burden on ordinary people.

Most of the optimistic people irrespective of which political party they belong to, hold on to the optimistic view that demonetisation is like half glass full water and remaining half is filled with air but not empty. Air is the sign positivity, sign of life to experience in the coming days and month. Advantages of demonetisation are huge. It is becoming ‘Normal India’ tracking the black money which helps to put an end to illegal activities such as hoarding of black money, terrorism funding etc. As a result government gets good tax revenue and due to huge inflow of cash,easy loans at lower interest rates becomes possible. As we know, inflation becomes worse through the deployment of cash earned in corrupt ways; poor have to bear the brunt of this. Therefore, due to demonetisation, inflation likely to go down as less money will be in circulation. Further, in real estate industry too buyers can negotiate a good deal of prices as real estate prices compelled to go down for housing units.

Some consider glass is half-full and half-empty because due to its bad planning negativity has swiped over the demonetisation; huge distress in the country, loss of revenue due to loss of productivity, non-availability of cash in banks and at the ATMs machines, huge seizure in new currency, non-availability of ATMs at village level, low card coverage, sorry state of cyber security, complex web services and at times authorities cutting off internet access to entire towns on the pretext of law and order - these are some serious factors that hinder India from going cashless. It is true that residents of all cities and villages expressed anger over standing in long queues to exchange currency in order to meet daily expenses. "I had woke up at 4 AM and rushed to the ATM to get cash but found that there was already a crowd who were complaining that there was no cash," said one among them.

One has to applaud PM Modi’s bold move of demonetisation by which he has put the national interest first before him and his party risking his own political career and his party which they think that even Indira Gandhi did not dare to do. Indira Gandhi rejected suggestions for demonetisation in 1971. She told her then finance minister Y B Chavan 'she wanted to win elections'. "This gave into "votary of corruption" resulting in poor economic condition" declared Modi. Hope better results turn out to PM Modi in the upcoming assembly elections from March to May 2017 in UP, Punjab, Goa, Uttarkhand and Manipur. If most of the states are won by BJP, Modi’s government chest will grow by one inch, or if BJP fail, decrease by two.

Demonetisation is not a new move in India. In January 1946, notes of Rs 500, Rs 1000, Rs 10,000 were demonetised. The move was made with an aim to curb black marketing. The repercussions were similar with people dying of shock, exceptionally long lines at the bank and the middle classes being hit.The old notes were being sold at 60 and 70 percent of their price. The move was called a ‘death blow’ to black marketeers.

Again in January 1978, notes of Rs 1000, Rs 5000, and Rs 10,000 demonetised. The Janata Dal demonetised high currency notes of Rs 1000, Rs 5000 and Rs 10,000 in a second such historic move, again with a view to curb black money transactions. People who possessed these notes were given till January 24 the same year — a week’s time — to exchange any high denomination bank notes.

Third time, in November 2016, notes of Rs 500, Rs 1000 were demonetised.The Narendra Modi government shook the country by announcing the demonetisation policy and turning notes of Rs 500 and Rs 1000 into paper. While people were allowed to exchange their old notes for valid currency, deposit the money, or withdraw a certain amount from the ATM, the move saw unprecedented lines outside banks and ATMs with bank employees working overtime to make up for the cash crunch in the common man’s life. As for the political impact, the winter session in parliament was completely washed out, with the opposition parties still at loggerheads with the centre, with most demanding a rollback of the move. However, the government has stated vehemently that it will not be taking back the move.

I hold on to this important point in support of demonetisation. India is the world’s 7th largest economy. Fiscal deficit plays an important role which consists essentially of two components: capital deficit and revenue deficit. While a contained capital deficit is a good indicator, revenue deficit should ideally be zero. However, India reels under a revenue deficit of 2.8% of the GDP. A significant portion of this deficit could be the result of inadequate collection on taxes and money not collected or shown called black money. The impact of tax evasion is that budgets end up having deficits both at the Centre and in the states. On this point of view, I am sure that every citizen of India definitely will agree with me that it is imperative that the black money should be contained.

Black money was one of the most important agendas during the last parliamentary election. PM Modi’s election campaign reflects the sentiment regarding the same in public as well as the govt. The Black Money Act is a step taken in the right direction as it addresses undisclosed income from both within and outside the country, as well imposing strict penalty. At this context It is quite natural one to question whether these election promises are objectively achieved or not. As responsible citizen let us wish that in the coming days new currency would be sufficiently made available. However, ATM ‘Q’ s of desperation, agony, pain, suffering on short of Rs. 500 and Rs. 2000 notes are slowlythinning down. It mightmuch more than 50 days to achieve the targets for the lasting internal security, military, economic gains.

During the emergency 1975 to 1977, 21 months of duration, it was said that police misused their power excessively by detaining the people without charge or notification to families, and resorting to abuse and torture of detainees and political prisoners. Sadly now also it is being observed that after 8/11 as new notes are being pumped into the system, some corrupt bank managers and officials are diverting the money, forcing the common man to stand in serpentine queues. This may take a toll on the government until and unless controlled very soon. Recently, RBI officer’s arrest has shown how a handful of corrupt people are holding the entire country to ransom. However, it is praiseworthy how most of the bankers showed tremendous fortitude during the demonetisation tribulations. Regrettably, a few bad apples are giving the entire nation a bad name due to these sins. As per old adage, ‘some may fool all the people some of the time, and some of the people all the time, but one cannot fool all the people all the time'.

PM Modi is the exponent of Smart City. Interestingly, Smart Cities demand smart inhabitants to run the manifesto of smart digital money and Swathch Bharath lest it can’t be called as a Smart City. This is a movement officially started from November 8; demonetisation transforms nation into cashless society. Although monitorial exercise (cashless society) might have hurt many initially, yet it has some strong economical, sociological advantages; containing social stratification; subduing economical hierarchy in the society. PM Modi has taken a political risk for the sake of economically backward people and for their welfare to limit the gap between poor and rich. This is a landmark decision every Indian has to support it because here is the magic, black needs to turn into white!

While completing almost 50 days of demonetisation, a few truths are seemingly visible:

• Political parties, many but not all, oppose the demonetisation move.
• Digital or cashless society is moving ahead to achieve desired resutls.
• Lucky draws to encourage digital payments.
• Regular high-profile IT raids
• More than 3,500 I-T notices sent to various entities.
• PM Modi has encouraged citizens to be informers or turn watchdogs
• Pradhan Mantri Garib Kalyan Yojana opened on December 17 to March 31, 2017. The scheme provides for 50 per cent tax and surcharge on declarations of unaccounted cash deposited in banks.
• Soon action against benami property holders.
• Lastly, penalty for possession of demonetised notes.

PM Modi’s government should act to bring an end to political corruption. If Modi’s government is sincere and honest in governance, it should first set example by enforcing LOK AYUKTA BILL on the pattern of Uttrakhand proposed by Khanduri’s government to arrest rampant corruption in BJP ruled states and remaining states. Similar action is needed against corrupt previous government leaders who looted this country in the last few decades. Impartial care should be taken while catching the culprit lest to burn a rat of black money hiding in a hut, someone has very rightly suggested to burn the whole hut, and the irony is that RATS have already have left the place and implanted themselves elsewhere.

Psyche of a tax payer is paramount - why they don’t pay taxes and hide money. A tax payer will always ask for himself to be provided with healthcare facility after retirement, in old age, dying stage, unlikemost of the European and Western countries. Government has to answer these tax payers' worries by implementing laws to win over them to pay the taxes on regular basis thus to curtail the menace of black money.

In 2013, Narendra Modi while addressing Shri Ram College of Commerce Business Conclave in Delh, had said, "Optimists say the glass is half full, pessimists say the glass is half empty. I have a different point of view. I say, this glass is always full, half with water, half with air!". Half glass filled with air suggests that there is enough room left for success. It is thought of life on positivity and development.

Politically, the decision has reinforced Modi’s image as a strong and decisive leader prepared to take bold and tough decisions in the country’s interests.

I appreciate the statement of PM Modi given other day that he will fight not only black dhann but also black mann or black philosophies on which black monies have set foot.

Thank you so much having gone through this write-up completely. Namaskar.