This time of the year, the last week is usually a “feel good” week. There is celebratory mood around thanks to Christmas, holiday outings to look forward to and with a fresh New year coming up – a feeling of Hope. Had the year gone well, one is anyway happy and hopes that the good days continue into the New Year. If it had not, you want to quickly move on and again hope that the New Year brings some cheer. Was it Ghalib who said – ‘Umeed par Duniya Kayam hai…uska saath na chodo’ (Hope sustains this world, don’t lose its company!) So it is with fervent hope for Achhe Din (oops not the political type) that one usually steps into the New Year – year after year!
While there are 12 months, 52 weeks and 365 days to a year, when history is written a year is usually defined by what happened in a week or probably in a day. And seldom have we realised when an event unfolds that it is history in the making. That is left to the wisdom of hindsight. For example, we now know that 1991 has been an important year for India. For opening up of the economy. For the end of license Raj. For unshackling the animal spirits. Yet, when the Industrial policy announcement was made in July 1991 by the Government, they were acknowledged by and large only as important “course corrections” considering the state of the economy by the media. Then, they were not labeled historic. The “Reforms” were always treated with suspicion and even in the Congress party there were many a doubting Thomases who derided the then Prime Minister Narasimha Rao and the Finance Minister Manmohan Singh. But today the rearview mirror displays that the reforms of 1991 have indeed left a positive trail in our country.
History is a great leveler. And at times more charitable than the present. So you find more eulogies on Narasimha Rao as a visionary, as a modern Day Chanakya,..,.. today than there were when he was alive. Or even when he passed away in the same month around the same date in 2004. Hence I was not surprised when Manmohan Singh in his last press conference as a Prime Minister famously said – “History will be kinder to me than the contemporary media!!!”
So likewise when history is written I do believe that 2016 will have a significant place in it for the one event which happened on the 8th of November – The Demonetisation of high value currency notes! We will know how the after effects of this move play out in the next few quarters. As I mentioned we live in eternal hope. So the hope is that we get over the pain caused by this move sooner than later and the economy is back in track by March/April.
But apart from this, if there is one thing for which this move will be remembered for in history, it will be for how Demonetisation changed some steadfast habits of Indians. As author Shankkar Aiyyar famously said in his book – Accidental India that almost all of India’s turning points like the White revolution, Liberalisation,…) were not the result of foresight or careful planning but were rather the accidental consequences of major crises that had to be resolved at any cost. Similarly the cash shortage situation resulting out of the Demonetisation program in the initial few days was panning out to be a major crisis. (Some would say it is still, though I beg to differ looking at how ground situation has changed for the better) This made the buyers and more importantly the sellers think of carrying on with their businesses with no or less cash.
Today in a traditional market in Mumbai – the usual signboard which said “Credit Card and other cards not accepted” – has the word “Not” blackened out! Paan Walas sporting “PayTM Accepted here” is no more just a subject of WhatsApp jeers but a reality. Restaurants and other outlets no more scorn at you if you flash your credit card for small payments. At multiplexes, there was are big lines during the interval not for buying popcorn tubs, but for swiping cards in one solitary POS machine! Personally speaking I am left with more cash in hand than ever in the past few years! The expenses haven’t reduced mind you though I would have lived with that side effect!
So this change in behavior of using less cash and migrating to digital means seen in Metros and big cities which will also spread to small towns and villages in due course could again become one “accidental” after effect of Demonetisation. We all know the overarching benefits of a Cash less /Digital economy. Indians by nature are trained to be less transparent in terms of disclosures – in matters of income and expenses. If we are forced to shrug off this ingrained reticence and have now become more open to transparency (all digital payments leave a trail) I think it is one helluva big step for a country like India naysayers notwithstanding.
2016 has been a historic year when status quo has been demolished everywhere. Brexit, the ascent of Donald Trump and in India – the Demonetisation move. The underlying sentiment has of course been “HOPE” in all these of better times ahead. With the ushering of another New Year, there is continued Hope. For, Hope is not just a good thing but is the “Best” thing! And isn’t it increasingly perilous to lose its company?
“Hoping” you will continue to read my posts and provide valuable feedback – see you in the next year!