Modi's Noteban "failed" exercise, not based on sound theory, cost-benefit analysis: Harvard Business Review

The study, titled "One Year After India Killed Off Cash, Here’s What Other Countries Should Learn from It" and written by Bhaskar Chakravorti, senior associate dean of International Business & Finance at the Fletcher School at Tufts University, the commentary says, "It’s unclear if any other experts have been consulted on the India policy." Commenting on the fact that the only “expert” who might have been the inspiration was "a hitherto unknown mechanical engineer-turned-turned-social-activist named Anil Bokil", HBR says, all that he did was 'a five-point plan for 'principled, prosperous, and peaceful living' and a 94-page PowerPoint manifesto that he pitched to Prime Minister Narendra Modi."
Observing that "90% of India’s workers are in the informal sector, where the predominant form of payment is cash. It is hard to imagine a scenario in which such “double” invalidation would not constitute a body blow to the workforce and the economy." "In a recent analysis of income tax probes, the cash component of undeclared wealth in India was estimated to be only about 6%. In other words, the policy instrument was aimed at the wrong target: most undisclosed wealth is held in noncash assets. All of this data was readily available and should have given the policy makers pause," HBR continues.
Modi's Noteban "failed" exercise, not based on sound theory, cost-benefit analysis: Harvard Business Review

The study, titled "One Year After India Killed Off Cash, Here’s What Other Countries Should Learn from It" and written by Bhaskar Chakravorti, senior associate dean of International Business & Finance at the Fletcher School at Tufts University, the commentary says, "It’s unclear if any other experts have been consulted on the India policy." Commenting on the fact that the only “expert” who might have been the inspiration was "a hitherto unknown mechanical engineer-turned-turned-social-activist named Anil Bokil", HBR says, all that he did was 'a five-point plan for 'principled, prosperous, and peaceful living' and a 94-page PowerPoint manifesto that he pitched to Prime Minister Narendra Modi."
Observing that "90% of India’s workers are in the informal sector, where the predominant form of payment is cash. It is hard to imagine a scenario in which such “double” invalidation would not constitute a body blow to the workforce and the economy." "In a recent analysis of income tax probes, the cash component of undeclared wealth in India was estimated to be only about 6%. In other words, the policy instrument was aimed at the wrong target: most undisclosed wealth is held in noncash assets. All of this data was readily available and should have given the policy makers pause," HBR continues.
Related Articles
Theme

Taliban in Afghanistan: A look back

Campaigns
Videos
Communalism
Bastar violence: Anti-Christian Campaign causes breach in Adivasi unity
Hundreds of Adivasi church-goers across villages in Narayanpur and Bastar, Chhattisgarh have been experiencing boycott, intimidation and violence since December last year, forcing them to leave their homes and live in refugee camps. Reportedly, Adivasi districts across Madhya Pradesh and Chattisgarh is seeing a rise Hindutva mobilisation against Christians .
Communalism
Bastar violence: Anti-Christian Campaign causes breach in Adivasi unity
Hundreds of Adivasi church-goers across villages in Narayanpur and Bastar, Chhattisgarh have been experiencing boycott, intimidation and violence since December last year, forcing them to leave their homes and live in refugee camps. Reportedly, Adivasi districts across Madhya Pradesh and Chattisgarh is seeing a rise Hindutva mobilisation against Christians .
Archives
IN FACT
Podcasts
Analysis

Taliban in Afghanistan: A look back

Freedom
Govt teacher suspended for FB post critical of K’ka CM Siddaramaiah’s freebies