Courtsey Global Times, China
New Delhi, November 26
Chinese media has hailed Prime Minister Narendra Modi’s demonetization move as “ bold”, but at the same time warned of long –term repercussions on the implementation and reform front . It has called it as a gamble by Modi
Global Times, the leading China Daily in its editorial on Saturday , while referring to Modi’s announcement of scrapping the legality of the Rs 1000 and Rs 500 notes on November 8 as “ very bold”, has stated : “ We cannot imagine what would happen in China if country bans its 50-100 Yuan notes.”
To prevent a leak of information jeopardizing the implementation of the demonetization reform, the rollout of the plan had to be kept confidential. Modi is in a dilemma as the reform aims to render the black money useless but the process goes against the governance principle of winning support of the public before initiating a new policy.
Demonetization can crack down on corruption and shadow economy but it is obviously unable to solve the deeper social and political issues that help breed the aforementioned problems. As far as the root causes of corruption exist, the problems will always resurface. In other words, the Modi government wishes to turn a long and arduous reform into a one-off deal.
Demonetization is a gamble for Modi. He bet on both the execution ability of the government and the tolerance level of the Indian society, hoping that the benefits of this reform can outrun the negative social impacts and low morale.
The Western-style democratic system of India allows little room for such bold moves. However, he is really carrying it out, and will create a precedent no matter he succeeds or fails.
Reform is always difficult and requires more than just courage. Modi’s demonetization came with good intention but whether it can succeed depends on the efficiency of the system and the cooperation of the entire society. More and more people are growing pessimistic about the ability of Modi’s government to control the process.
China’s reform and opening-up has been going on for nearly 40 years. It had ups and downs but remained largely stable. Its success is based on broad public support. The strong execution capabilities of the Communist Party of China are built on the consensus of the entire country. By observing India’s reforms we will draw lessons, which would in turn help us understand our own reforms, the editorial said.