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International Journal of Research in Social Sciences Vol. 9 Issue 3, March 2019, ISSN: 2249-2496 Impact Factor: 7.081 Journal Homepage: http://www.ijmra.us, Email: editorijmie@gmail.com Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A Coverage of demonetization in Indian dailies:A content analysis 1 Dr.J.MadhuBabu N. Nageswara Rao2 Abstract This study investigates the impact of demonetization on public life through news coverage. The study adopted a content analysis research method. The top two English newspapers i.e., The Times of India and The Hindu. The other two newspapers were taken from Telugu i.e., Eenadu and Sakshi were selected for data collection. It is not a random sample method. It's a purposive continuous sample. The study was conducted during November 9, 2016, to November 22, 2016. ‘ Keywords:Demonetization, Public Agony, Newspapers, Content Analysis. 1Assistant Professor, Department of Journalism and Mass Communication, Acharya Nagarjuna University, Guntur. 2Research Scholar, Department of Journalism and Mass Communication, Acharya Nagarjuna University, Guntur. 616 International Journal of Research in Social Sciences http://www.ijmra.us, Email: editorijmie@gmail.com ISSN: 2249-2496 Impact Factor: 7.081 1. Introduction Demonetization is the act of stripping a currency unit of its status as a legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with the new currency.The opposite of demonetization is remonetization, in which a form of payment is restored as legal tender.Reasons for Demonetization1) to combat inflation 2)to combat corruption and crime (counterfeiting, tax evasion) 3)to discourage a cash-dependent economy 4) to facilitate trade. 1.1 Demonetization in the world The Coinage Act of 1873 demonetized silver as the legal tender of the United States, in favor of fully adopting the gold standard. Several coins, including two-cent piece, three-cent piece, and half dime were discontinued. The withdrawal of silver from the economy resulted in a contraction of the money supply, which subsequently led to a five-year economic depression throughout the country. In response to the dire situation and pressure from farmers and silver miners and refiners, the Bland-Allison Act remonetized silver as legal tender in 1878. An example of demonetization for trade purposes occurred when the nations of the European Union officially began to use the euro as their everyday currencies in 2002. When the physical euro bills and coins were introduced, the old national currencies, such as the German mark, the French franc, and the Italian lira were demonetized. However, these varied currencies remained convertible into Euros at fixed exchange rates for a while to assure a smooth transition. In 2015, the Zimbabwean government demonetized its dollar as a way to combat the country’s hyperinflation. The three-month process involved expunging the Zimbabwean dollar from the country’s financial system and solidifying the U.S. dollar, the Botswana pula and the South African rand as the country’s legal tender in a bid to stabilize the economy. 1.2 Demonetisation in India The Indian government had demonetized bank notes on two prior occasions once in 1946 and then again in 1978 and in both cases, the goal was to combat tax evasion by "black money" held 617 International Journal of Research in Social Sciences http://www.ijmra.us, Email: editorijmie@gmail.com ISSN: 2249-2496 Impact Factor: 7.081 outside the formal economic system. In 1946, the pre-independence government hoped demonetization would penalize Indian businesses that were concealing the fortunes amassed supplying the Allies in World War II. In 1978, the Janata party coalition government demonetized banknotes of 1000, 5000 and 10,000 rupees, again in the hopes of curbing counterfeit money and black money. In 2012, the Central Board of Direct Taxes had recommended against demonetization, saying in a report that "demonetization may not be a solution for tackling black money or economy, which is largely held in the form of Benamiproperties, bullion, and jewelry. According to data from income tax probes, black money holders kept only 6% or less of their wealth as cash, suggesting that targeting this cash would not be a successful strategy. 1.3 India's present Demonetization In 2016, the Indian government decided to demonetize the 500- and 1000- rupee notes, the two biggest denominations in its currency system; these notes accounted for 86% of the country’s circulating cash. With little warning, India's Prime Minister Narendra Modi announced to the citizenry on November 8, 2016, that those notes were worthless, effective immediately and they had until the end of the year to deposit or exchange them for newly introduced 2000 rupee and 500 rupee bills.The new rupee notes have different specifications, including size and thickness, requiring re-calibration of ATMs: only 60% of the country’s 200,000 ATMs were operational. Even those dispensing bills of lower denominations faced shortages. 1.4 Opinions on Demonetisation by opposition parties A Congress-led opposition which includes 13 political parties opposed the current government on the demonetization issue in the Winter Session of the Indian Parliament on 16 November 2016. The Chief Minister of West Bengal Mamata Banerjee also met the President Pranab Mukherjee to oppose the demonetization. The debate on demonetization is known to be initiated by Indian National Congress and Anand Sharma in the Rajya Sabha on 16 November 2016, while Banerjee is known to be the first to oppose the current government on the demonetization. 618 International Journal of Research in Social Sciences http://www.ijmra.us, Email: editorijmie@gmail.com ISSN: 2249-2496 Impact Factor: 7.081 On 16 November 2016, Banerjee led a rainbow delegation comprising political parties of Trinamool Congress, AamAadmi Party, BJP ally Shiv Sena, PatidarAnamatAndolanSamiti (of Hardik Patel) and National Conference to RashtrapatiBhawan to protest against the decision to withdraw the Rs. 500 and Rs. 1000 banknotes. A memorandum was submitted to the President of India Pranab Mukherjee demanding the rollback of the decision. On 17 November 2016, in a rally against demonetization of Rs. 500 and Rs.1000 notes, led by the Chief Minister of Delhi Arvind Kejriwal and his West Bengal counterpart Mamata Banerjee at AzadpurMandi, the biggest vegetable and fruits wholesale hub in the national capital; Kejriwal demanded the withdrawal of demonetization in 3 days. Banerjee also stated "I give the government 3-day ultimatum, fix things or withdraw the demonetization scheme.In the demonetization debate on the second and third day of the Winter Session of Parliament, on 17 and 18 November 2016, the opposition and the government clashed over the demonetization issue, bringing the house to continuous halts. 1.5 Criticism on Demonetisation The Indian Supreme Court while hearing one among a slew of cases filed against the sudden demonetization decision in various courts, observed that it "appears to be carpet bombing and not surgical strike" which government repeatedly claims it to be.Nobel laureate Indian economist Amartya Sen, severely criticized the demonetization move calling it a "despotic action" among other things. Former Senior Vice-President and Chief Economist of the World Bank, Kaushik Basu, called it a 'major mistake' and said that the 'damage' is likely to be much greater than any possible benefits. Pronab Sen, former Chief Statistician and Planning Commission of India member, called it a "hollow move" since it did not really address any of the purported goals of tackling black money or fake currency.Prabhat Patnaik, a former professor of economics at the Jawaharlal Nehru University, Delhi called the move 'witless' and 'anti-people'. He criticized the simple way in which black money was assumed as "a hoard of cash", saying that it would have little effect in eliminating "black activities" while "causing much hardship to common people. 619 International Journal of Research in Social Sciences http://www.ijmra.us, Email: editorijmie@gmail.com
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