India 3rd most dangerous?…Why US could protect, but India could not!

Whenever it comes to the threats from anti-national elements, may it be terrorism or naxalism, we tend to divert the blame on outside factors. However let’s apply common sense, let’s see through the practical and very effective possible measures, because it indicates that the action is pending on you and me, hence we can shape up the results!!!

As TOI reports, Latest data from National Bomb Data Centre (NBDC) show that India suffered 212 bomb blasts in 2013 — more than double of what Afghanistan (with 108 blasts) suffered. That makes our country 3rd most dangerous place in the world – next only to Iraq and Pakistan. And most of us are NOT aware about our weakness, hence don’t know ‘what to do?’ When the vulnerability is accepted, let’s look at what can be done and let’s act now!

After 11 September 2001 attack on US twin towers, there has been no further attack possible on US till 2014, though terrorist are infuriated by US actions across the world. Whereas just 3 months later, Indian Parliament was targeted by the terrorists and thereafter there have been series of terrorist attacks every year. 

ParliamentAttack_1

 

Twin_Tower_attack

Why is that US could stop it and India could not?

Here are some comments from US government agency FBI’s report

It’s not surprising. Money fuels the operations of terrorists. It’s needed to communicate, buy supplies, fund planning, and carry out acts of destruction.

But there’s a flip side to this proverbial coin. In the shadowy, secretive world of terrorists, this spending leaves a trail—a trail that we can follow to help expose extremists and their network of supporters…sometimes before they can strike.

That’s why shortly after 9/11, we established the Terrorist Financing Operations Section (TFOS).

TFOS chief Jane Rhodes-Wolfe believes that the combined efforts of the financial industry, international partners, and federal, state, and local agencies have “established an increasingly difficult environment for terrorist financiers to operate in undetected…and ensure an ongoing and coordinated approach to terrorist financing to help prevent future terrorist attacks against the U.S.

Aren’t you aware that in India about 70%-80% of transactions happen in cash, whereas in US most of transactions happen through banks. In UK it is more than 95%, they are targetting to go cashless, with lessons learnt after serial train blasts. You can imagine the untraceability of cash transactions in India as compared to US. And that seems to be the primary reason of our ineffectiveness in countering the anti-national elements. So though both the countries took actions in catching hold of immediate actors involved in the activities, India could not trace and could not stop the trail, till now.

What are problems with the rampant cash in India?

  1. The rampant availability of cash leads to majority of transactions in cash hence un-traceability. This obviously leads to ineffectiveness of efforts to counteract anti-national activities. To a large extent cash route is chosen even for high value transactions because of the complex and heavy taxation.
  2. Of the available cash, more than 94% is in denominations above 100, that leads to ease of cash transactions, this helps not only anti-national elements but even the detrimental corruptionCurrency_Distribution_2011_12
  3. The same high denominations promotes printing of fake currency notes. And these cheaply available Fake Indian Currency Notes (FICNs) are widely used for anti-national activities, you can take a read at recent news about it and there are many moreTerrorism and Fake Indian Currency Notes (FICNs): A Growing Menace.tracing-the-fake-note-trailHere are some more linksMoney Jihad – Combating terrorist financing!

    Hizbul Mujahideen circulating fake currency in India, reveals NIA investigation

    How fake currency funds terror

    But what facilitates printing Fake Indian Currency Notes (FICNs)?

    • Average cost of printing a note is about Rs. 3 to Rs. 4
    • And there is also some cost involved in bringing that into circulation through illegal means => so total cost per fake note may go up to Rs. 30 to Rs. 40.
    • It is evident that there is huge benefit in printing fake currency notes of denomination 500, 1000 and even 100. That’s why of the detected fake currency in recent years, about 99% of it is in denominations of 100, 500 and 1000.

    So these high denomination currency notes are largely responsible of FICNs, hence terrorism and other anti-national activities. These technical flaws in our system are barely known or discussed.

What can be changed in India?

Knowing the highly detrimental effects of cash and FICNs, it is no-brainer that we have to move to traceable means of transactions, the bank transactions and need to get rid of high denominations.

The next question comes to our mind is that ‘Is moving to bank transactions doable for India, which has very high illiteracy?

  1. And the first response to that should be ‘If country like Kenya can bring about revolution through mobile banking, why we cannot in India?
  2. ASSOCHAM also known as the country’s “Knowledge Chamber” has published a report in the context ‘Mobile Payments in India: New frontiers of growth‘, which shows India’s infrastructure/technology readiness
  3. Our own government’s committee formed under chairmanship of Mr. Nilekani submitted a report on ‘Unified Payment Infrastructure‘, which recommends use & promotion of micro-ATMs and mobile banking
  4. We have to get rid of high denominations, as even recommended in Arthakranti Proposal and it has many more benefits attached. The currency revoking is definitely doable, as can be seen from RBI’s recent decision to revoke currency printed before 2005.

So what can we do?

As one can understand that apart from enhancing the activities by defense forces, we have to overcome our internal weakness (cash & high denominations) and fortunately the weaknesses is technical, so it can be corrected in shorter time frame.

Though the action will have to ultimately taken by our central government and RBI, it is only you and me who can influence that action. When a common man can understand this simple logic, RBI & the Government must already be knowing it. Recently in Jan 2014, in line with Arthakranti proposal, BJP did talk about removing high denominations along with simplification of taxation, as complex taxation is also partly responsible for more cash transactions.

As we are not sure if any national political party will really take this up on their agenda, you and me have to demand for that action. We have to take up that small action of demanding, if we want to protect ourselves and if we want our country to be safer for us as well for our next generations to come!

For reference: Some more reports from US agencies

http://homeland.house.gov/sites/homeland.house.gov/files/05-18-12%20Meehan%20Open.pdf

http://govinfo.library.unt.edu/911/staff_statements/911_TerrFin_Monograph.pdf

 

6 thoughts on “India 3rd most dangerous?…Why US could protect, but India could not!”

  1. The terms of Arthakranti are the wise outcome to diminish the anti national activities in manifold ways. These initiative are very practical and vital to rescue our national pride.

    Indra Chapagai, Guwahati, Assam.

  2. This is a very nice proposal and by far the most practicle one.

    The main drawback for its implementation is the current infracture. Mobile payments are increasing but we need to also check which group/category of people are doing that. This is mostly the techno geeks or the technical people who are aware of its use and simplicity. Coming to the infracture and mobile connectivity, we all know the connectivity issues of mobiles. Porbably we(or the banks) can introduce some kind of machine which will be directly connected to everyone’s account and that will hepl transfer money instantly and which is much simpler than the mobile transfer. (This will help the non technocrats and the old and illiterate)

    I surely give my thumbs up for this kind of an implementation, though it would require a lot of awarness in people for non cash transations.

  3. I do acknowledge what is being proposed. However before getting all hunky dorky about the benefits think of the limitations we as a nation face as of now
    1. going paper less – currently penetration is below double digits as far as india is to be considered
    2. minimum risk mechanisms creation for various e-models – even developed part of the world is going to start having minimum standards in place only post 2015, which means they will test it and then over a period of time will know whether it is working as expected. We unfortunately do not have the security penetrations on these parameters.

    I do agree that going cashless will definitely do us better, but for this journey to start we need ourselves to create platforms for such discussions. This website seems to add to that reality which we need to look forward too. Kudos for your efforts.

  4. I support the proposal. In earlier times it wouldn’t have been possible even to conceive or implement such a proposal. But now with ubiquitous IT tools it is not only easy to implement buy very much practical also. But corrupt politicians, tax babus who might become redundant, and other corrupt interests many of them being part of the current govt. itself will not even like to discuss the proposal.
    Another aspect is that banking facility to anyone will have to be provided in a matter of minutes without much hassle for it to work effectively.

  5. I totally agree with ArthaKranthi system. Hope to implement as soon as possible as Mr. Modi has enough majority to do that.
    Jai Hind.

  6. This thinking needs to be applied to this vast country in small doses , sample groups, see how it is accepted, perceived , argumented by the differing people and argumentative citizens . Last but not the least , our super estate — the media , the great decider in to all things mundane and irrational come out with their talk show. We are always going to be in pilot project stage , and I have been in writing a note.
    This is easier said than done. But I do agree that we need to get to the next yard ahead. One need not do the transaction to carry out a activity/action. Using another person knowingly , forcibly , unknowingly, blackmailing , luring them in to the cashless or through barter system , terroism can be still be available. Terrorism is a state of the mind- wherein it can be a game , challenge , hatred, or a legacy of a type of people who are akways going to inhabit. These aberration are part of this complex and wonderfull ecosystem – the human cradle of humanity and insaneness. These two sleep side by side and change polarity . We are all in this grind …….. march towards growth . What type of GROWTH.

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