Demonetisation despotic action, undermines trust: Amartya Sen

"It (demonetisation) undermines notes, it undermines bank accounts, it undermines the entire economy of trust. That is the sense in which it is despotic," Sen told NDTV.

Published: 30th November 2016 03:59 PM  |   Last Updated: 30th November 2016 03:59 PM   |  A+A-

Amartya Sen1PTI

Noted Indian economist Amartya Sen. | PTI

By PTI

NEW DELHI: Nobel Laureate Amartya Sen has called Modi government's demonetisation move "despotic action that has struck at the root of an economy based on trust".
    
"It (demonetisation) undermines notes, it undermines bank accounts, it undermines the entire economy of trust. That is the sense in which it is despotic," Sen told NDTV.
    
He further said his immediate point of view on demonetisation is on its economic aspect. 
    
"It's (demonetisation) a disaster on economy of trust. In the last 20 years, the country has been growing very fast. But it is all based on acceptance of each other's word. By taking despotic action and saying we had promised but won't fulfil our promise, you hit at the root of this," Sen, also a Bharat Ratna awardee, said.
    
Noting that capitalism has many successes that have come from having trust in businesses, he said if a government promises in the promissory note and breaks such promise, then it is a despotic act.
     
"I am not a great admirer of capitalism. On the other hand, capitalism has many successes... It's despotic in the sense that if a government promises in the promissory note that when given, we will give you this amount of compensation for it and to break such a promise is a despotic action," Sen, who is currently Thomas W Lamont University Professor at Harvard University, said.
    
The demonetisation issue has also rocked Parliament as both Houses have been witnessing disruptions and adjournments due to noisy protests by Opposition parties for the past several days. 

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp