Demonetisation effect on education – Ashok Singh Guleria

Brainfeed Magazine - Demonetisation effect on education
Demonetisation effect on education – Ashok Singh Guleria

In recent years, India has become a key player in the global education industry with 1.4 million schools having more than 227 million enrolled students and more than 36,000 institutions imparting higher education. By 2020, India’s average age will be just 29 years, in comparison with 37 in China and the United States, 45 in Western Europe and 48 in Japan. This demographic trend will confer a significant competitive advantage upon India.

To meet the future challenges of this potentially productive population a host of reforms and improved financial outlays is required to transform the country into a knowledge haven. With human resource increasingly gaining significance in the overall development of the country, development of education infrastructure is expected to remain the key focus in the current decade. In this scenario, infrastructure investment in the education sector is likely to see a considerable increase in the current decade.

Still the country after demonetisation is in a calculative whirl and is responding to the economic, socio- political outcomes. In education and human resource development this will surely help uplift the education sector with expectedly larger budgetary provisions, open investment and infrastructure.
Moreover, there is larger scope of spurt in digital advancement in the sector in administration and education management system. In private education system demonetisation will help to curb corruption that enters the sector via donations and capitations.

India’s average age will be just 29 years, in comparison with
37 in China and the United States,
45 in Western Europe and
48 in Japan. This demographic trend will confer a significant competitive advantage upon India.

On corruption
Demonetisation of currency has eliminated the scope of inflow of shadow money from unknown sources. This will certainly put restraint on the practices of politicians wooing electorates with cash. Fund distribution and utilization for political campaigns, advertisements will come under government scanner as donors to political parties too will come under surveillance as all transactions from accounts will be under scrutiny of finance controlling bodies. There is a need for substantive reforms to bring transparency and accountability to its opaque campaign finance system in the long run success of this move.

On shadow economy
The parallel shadow economy run by black money crippled the political systems and public institutions. Demonetisation is a progressive decisive push for democracy to move forward. Merely opposing this massive campaign will only weaken what is a first time initiative to weed out unwanted elements. Many economists predict that cleaning up of the system will add substantially to the GDP – Ambit’s Saurabh Mukherjea, the eminent analyst predicted that within three years this move could lead to an increment of three percent in the annual growth rate. As a result, the government will be able to enhance investments in public health, education, infrastructure resources etc.

On energising the economy
As per the analysis of Finance Ministry, during 2011-2016, the circulation of smaller currency grew 40% against the circulation of `500 and `1,000 notes that went up by 76% and 109% respectively. Relatively speaking, the economy has grown only by 30% which is way below the money circulation. Since the currency of the banned denominations constitutes around 86% of the total value of the currency in circulation which was not going to the banks in expected limit therefore the move was urgent to puff out from the darker drains. Obviously, the inflow of fair money in the economy will boost investment in public and private sectors leading to growth of the economy in the long run. It will attract impartiality in terms of trade investment and employment.

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