Demonetisation: In a hamlet in Bihar, income and expenditure is down, but hopes are up

The last 30 days have not been easy for the people of Bhindu Paimar.

The standard demonetisation narrative has played out in this tola (hamlet) in Karjara panchayat in Gaya, Bihar, about 20 km from Gaya city, on the road that leads to the ancient Buddhist university of Nalanda.

Earnings have fallen. Most people in the village work as daily-wage workers in Gaya, earning anywhere between Rs 225 and Rs 250 a day.

Before demonetisation, we used to get work 20 days in a month, said Bhim Kumar, a young man in the village. However, the demand for labourers has dried up in the town since November 8 when the demonetisation announcement was made. At the same time, the local grameen bank is not letting people withdraw more than Rs 2,000 a week. “We are borrowing from here and there to make ends meet,” said Kumar.

Talk to others in the village – like Lallan Paswan, who has a small shop selling household provisions right next to the highway – and you hear a similar narrative. The monthly turnover at his shop is down by half. His monthly income has dropped from Rs 5,000 to Rs 2,500.

Despite these difficulties, support for demonetisation is high in this village, which is what this reporter also saw while travelling southwards from Raxaul, on the India-Nepal border, towards South Bihar. In Raxaul, Bettiah, Gopalganj, Darbhanga, Patna and now Gaya, public opinion has split over demonetisation.

This split is not easy to understand. Not everyone hurt by demonetisation opposes it. Similarly, not everyone relatively insulated from its worst fallouts supports it. In short, there are complex reactions to demonetisation.



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I am an Indian journalist with interests in energy, environment, climate and India’s ongoing slide into right-wing authoritarianism. My book, Despite the State, an examination of pervasive state failure and democratic decay in India, was published by Westland Publications, India, in January 2021. My work has won the Bala Kailasam Memorial Award; the Ramnath Goenka Excellence in Journalism Award; five Shriram Awards for Excellence in Financial Journalism; and, more recently, been a finalist at the True Story Award and GIJN’s Global Shining Light Awards. Write to me at despitethestate@protonmail.com.

Reviews

…une plongée dans les failles béantes de la démocratie indienne, un compte rendu implacable du dysfonctionnement des Etats fédérés, minés par la corruption, le clientélisme, le culte de la personnalité des élus et le capitalisme de connivence. (…a dive into the gaping holes in Indian democracy, a relentless account of the dysfunction of the federated states, undermined by corruption, clientelism, the cult of the personality of elected officials and crony capitalism).” Le Monde

…a critical enquiry into why representative government in India is flagging.Biblio

…strives for an understanding of the factors that enable governments and political parties to function in a way that is seemingly hostile to the interests of the very public they have been elected to serve, a gross anomaly in an electoral democracy.” Scroll.in

M. Rajshekhar’s deeply researched book… holds a mirror to Indian democracy, and finds several cracks.The Hindu

…excels at connecting the local to the national.Open

…refreshingly new writing on the play between India’s dysfunctional democracy and its development challenges…Seminar

A patient mapping and thorough analysis of the Indian system’s horrific flaws…” Business Standard (Image here)

33 മാസം, 6 സംസ്ഥാനങ്ങൾ, 120 റിപ്പോർട്ടുകൾ: ജനാധിപത്യം തേടി മഹത്തായ ഇന്ത്യൻ യാത്ര… (33 months, 6 states, 120 reports: Great Indian journey in search of democracy…)” Malayala Manorama

Hindustan ki maujooda siyasi wa maaashi soorat e hal.” QindeelOnline

What emerges is the image of a state that is extractive, dominant, casteist and clientelist.Tribune

…reporting at its best. The picture that emerges is of a democracy that has been hijacked by vested interests, interested only in power and pelf.Moneycontrol.com

Book lists

Ten best non-fiction books of the year“, The Hindu.

Twenty-One Notable Books From 2021“, The Wire.

What has South Asia been reading: 2021 edition“, Himal Southasian

Interviews

Journalism is a social enterprise…,” Booksfirst.in.

Democratic decay at state level: Journalist M Rajshekhar on book ‘Despite the State’,” The News Minute.

Covid-19 en Inde : “des décès de masse” dont un “État obscurantiste est responsable,” Asialyst.

Allusions/Mentions

JP to BJP: The Unanswered Questions“.
Mahtab Alam’s review of “JP to BJP: Bihar After Lalu and Nitish”.

Urban History of Atmospheric Modernity in Colonial India“. Mohammad Sajjad’s review of “Dust and Smoke: Air Pollution and Colonial Urbanism, India, c1860-c1940”.

Westland closure: Titles that are selling fast and a few personal recommendations,” by Chetana Divya Vasudev, Moneycontrol. (Because this happened too. In February, a year after DtS was released, Amazon decided to shutter Westland, which published the book. The announcement saw folks rushing to buy copies of Westland books before stocks run out.)

Time to change tack on counterinsurgency” by TK Arun, The Federal.

All Things Policy: The Challenges of Governing States” by Suman Joshi and Sarthak Pradhan, Takshashila Institute (podcast).

The Future of Entertainment“, Kaveree Bamzai in Open.

On What India’s Watching“, Prathyush Parasuraman on Substack.

The puppeteers around us“, Karthik Venkatesh in Deccan Herald.

Will TN election manifestos continue ‘populist’ welfare schemes?“, Anna Isaac for The News Minute.

Why wages-for-housework won’t help women“, V Geetha in Indian Express.

The poor state of the Indian state“, Arun Maira in The Hindu.

Book discussions

14 April, 2024: The costs of political corruption, Bangalore International Centre.

27 May, 2023: Safe Spaces/Why Indians live despite the state. TEDx Bangalore.

12 November, 2022: Stop Loss: Overcoming the systemic failures of the Indian State. Tata Literature Festival, Mumbai.

26 December, 2021: Rangashankara, Bangalore, a discussion with Dhanya Rajendran.

16 November: Rachna Books, Gangtok, a discussion with Pema Wangchuk.

29 August: Books In The Time of Chaos, with Ujwal Kumar.

21 May: Hyderabad Lit Fest with Kaveree Bamzai and Aniruddha Bahal.

28 March: Paalam Books, Salem, Tamil Nadu.

19 March: The News Minute, “Citizens, the State, and the idea of India

6 March: Pen@Prithvi, with Suhit Kelkar

20 February: A discussion between scholars Usha Ramanathan, Tridip Suhrud, MS Sriram and me to formally launch Despite the State.

6 February: DogEars Bookshop, Margoa.

5 February: The Polis Project, Dispatches with Suchitra Vijayan.

30 January: Founding Fuel, “Systems Thinking, State Capacity and Grassroots Development“.

25 January: Miranda House Literary Society

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