IMF ACCOLADES

Source: The Hitavada      Date: 17 Dec 2017 11:41:38

EVEN as the International Monetary Fund (IMF) makes its assessment of the demonetisation move by the Government of India a year ago, Mr. William Murray, the its Deputy Spokesman at the Communications Department, has said that good effects of the move could be sensed in the pipeline. There were some negative effects of the move due to sudden shortage of cash, particularly in the cash-dependent business sectors, but those were now tapering off, he has said. The IMF is now looking at some salutary benefits of demonetisation undertaken by the Government of India last year, he stressed.
This mid-term assessment by the IMF and praises coming from other agencies for the bold initiative of demonetisation indicate that the move was intended for a larger national good. It is true that a lot of business sectors in the country did get hit due to sudden funds crunch and kept suffering for a few months. Subsequently, however, people and experts alike started sensing some compensatory factors also showing up much to everyone’s delight.

This was what Prime Minister Narendra Modi and his senior colleagues in the Government kept insisting even as political Opposition mounted attacks for a failed decision. The Prime Minister appealed for people’s patience. “Any big move takes time to start showing good effect,” Finance Minister Mr. Arun Jaitley also insisted time and again. Those who had no vested interests in mounting criticism upon the Government understood that the move was far more complicated than the superficial understanding of its implications. But those who had a political axe to grind kept heaping abuses upon the Government, though without any effect. The people in general endorsed the correctness of the move by voting in the Government’s favour in elections after elections.

And now has come the appreciation from the International Monetary Fund accepting that the move of demonetisation has created some salutary benefits for the Indian economy and the IMF is beginning to see those clearly. This assessment with no political strings attached has a great value for the Government as an endorsement of its move.