Insights on Demonetisation from Rural Tamil Nadu: Understanding Social Networks and Social Protection
Résumé
Drawing on survey data from rural Tamil Nadu, the
effects of demonetisation are documented. Serious
concerns arise with regard to the achievement of its
stated goals. The rural economy was adversely affected
in terms of employment, daily financial practices, and
social network use for over three months. People came
to rely more strongly on their networks to sustain their
economic and social activities. Demonetisation has
probably further marginalised those without support
networks. In a context such as India, where state social
protection is weak and governmental schemes are
notoriously subject to patronage and clientelistic
networks, dense networks of supportive relatives,
friends and patrons remain key for safeguarding daily
life. With cashless policies gaining currency in various
parts of the world, we believe our findings have major
implications, seriously questioning their merit,
especially among the most marginalised segments
of the population.