When NATO forces entered Afghanistan following the attacks of September 11, 2001, much of the country’s infrastructure, as well as its public institutions and underlying social fabric, had been destroyed by more than two and a half decades of conflict. At the time, landmines were still killing an average of 40 Afghans a day. Over the last 15 years, the international community, led by the United States, has invested massive resources in an attempt to transform Afghanistan into a more stable, modern, and prosperous country.
CGD Policy Blogs
It has been more than 100 days since the Modi government declared that the two largest denomination notes in India—the 500 and 1000 rupee notes—would no longer be accepted as legal tender. The announcement of “demonetization” had an immediate and sweeping effect on Indian households, which were no longer allowed to use the notes (outside of a few narrow exceptions) and were given less than eight weeks to deposit or exchange them.
Prime Minister Narendra Modi’s announced a bold measure on Wednesday to reduce the role of unaccounted for cash or “black money” in the country’s economy by “de-monetizing” higher-denomination currency notes. The new policy bans the use of 500 rupee and 1,000 rupee currency notes. While this measure may have the positive (though potentially temporary) effect of forcing illicit activity out of the regulated economy, the process could be disorderly, with the poorest members of society bearing the brunt of the disruption.