Why President Pranab Mukherjee's views on demonetisation are echoing Manmohan Singh's
Not too long ago former Prime Minister Manmohan Singh rose in Parliament to highlight the problems arising due to demonetisation, a speech that was hailed by fellow economists as one of his best.
Little did one know that his sentiments would be echoed weeks later by none other than his erstwhile colleague and now the President of India, Pranab Mukherjee.
Addressing the governors and LGs of India on January 5, the president said, "Demonetisation, while immobilising black money and fighting corruption, may lead to temporary slowdown of the economy."
His remark is significant because a day after the prime minister had announced the demonetisation of 500 and 1,000 rupee notes, the former had "welcomed the bold step taken by the government which will help unearth unaccounted money as well as counterfeit currency," a Rashtrapati Bhavan statement said.
Juxtapose this with former PM Singh's speech in the Rajya Sabha on November 24. Singh, a senior economist, also predicted a fall in GDP, had said: "My own feeling is that the national income, that is the GDP, can decline by about two per cent as a result of what has been done. This is an underestimate, not an overestimate."
The similarity in their sentiments does not end here. The president has spoken about the duration of the distress and the burden it would cast on the poor. "We all will have to be extra careful to alleviate the suffering of the poor which might become unavoidable for the expected progress in the long term."
This reference to "expected progress in the long term" was also emphasised by Dr Singh in his Rajya Sabha speech. He had quoted the famous lines of John Keynes, "In the long run all of us are dead" to argue against the belief that demonetisation will cause distress in the short term, but is in the interests of the country in the long run.
Mukherjee said that while he appreciates the thrust on transition — from an entitlement-centric approach to an entrepreneurial one — for poverty alleviation, he is not confident that the poor can wait that long.
It is apparent from the statements of the former PM and the current President that they caution against the long wait being disastrous for the poor.
Dr Singh also reminded the country in his RS speech that "50 days is a short period but for those who are poor and from the deprived sections of the society, even 50 days' torture can bring about disastrous effects".
He had hit out at the government, demanding that the PM come up with a constructive proposal on how to implement the scheme and prevent further distress.
The president echoed the former PM's concern on yet another occasion: "They need to get succour here and now, so that they can also participate actively in the national march towards a future devoid of hunger, unemployment and exploitation."
A comparison between the two towering personalities of the Congress party is inevitable. Their differences too have often been talked about.
In his autobiography, president Pranab has said, "I never saw my differences with Dr Singh, on the rare occasions they occurred, as anything other than legitimate exchanges of opinion over professional matters."
In a political career spanning six decades, President Pranab Mukherjee occupied every single position of power and eminence, except the prime minister's. He was the troubleshooter in the UPA government. Many would argue that purely based on merit and stature, there was no better choice for the PM's job than Pranab Mukherjee. But Congress president Sonia Gandhi went on to choose Singh for the top job, arguably on the basis of the sheer trust and faith she had in him. It can be said that both have been chasing each other's destiny.
The government and the Opposition have often sighted President Pranab Mukherjee's view on issues to support their arguments on the demonetisation drive — and it is but natural that the president's speech will yet again be viewed in a politically charged environment.