BEIJING, November 14 : India’s decision to demonetise Rs 500 and Rs 1,000 currency notes was “bold and decisive” but the “risky” move is far from delivering a corruption-free country, the Chinese media said today.
Chinese official media said the currency ban is “far from enough” and India may “look at ideas” from China’s crackdown against corruption which has shown “efficiency”.
“(Narendra) Modi means well and his decision was made based on the reality in India, since most illegal business in the underground economy is cash-only, and 500 and 1,000 rupee notes constitute over 80 per cent of all cash circulation in India. Nevertheless, we can hardly count on the new rule to fully root out corruption,” the article titled ‘Beijing offers clues for Modi’s new anti-corruption moves’ in state-run In Global Times said.
Since PM Modi assumed office, he has carried out a number of measures to crack down on black money, corruption and tax evasion. However, many of them are believed to be “without teeth and can’t begin to scratch the surface of the problems he faces”, it said. India’s new policy to scrap high value notes is considered a “risky, but a bold and decisive step”, it said.
“And yet, delivering a corruption-free country requires more than banning currency notes. The key should be reforming systems. In this regard, New Delhi might need to look for ideas from Beijing,” it said, referring to the massive anti- graft campaign carried out by President Xi Jinping in which over a million officials at different levels were punished.
Since the 18th National Congress of the Communist Party in 2012, during which President Xi was elected as its general secretary, and taking over as the Chinese President and military chief launched the anti-graft campaign which also attracted criticism that he used it effectively to consolidate his power emerging as the most powerful Chinese leader after party founder Mao Zedong.
China is still on its way toward building a comprehensive anti-corruption system. But “compared with India, Beijing’s method has already shown its efficiency”, it said.
“More time is needed to see whether Modi’s new policy will turn into a huge blow against corruption in India. The hard truth is that the corrupt and fraudulent won’t just conduct shady deals by using cash, but with gold, real estate and overseas assets.
“Corruption can be bred in a variety of ways. Blocking the circulation of large currency bills is without question far from enough,” it said.
