“India’s systems seem to be holding up better than Venezuela’s, despite the logistical chaos in both countries”
President Modi of India and President Maduro of Venezuela embarked on a journey to demonetize their large denomination currencies. India is the largest democracy in the world, while Venezuela although socialist, is autocratic. So, the way these two countries carried out the demonetisation is very different. In India, the measure had immediate effect. In Venezuela, started two days after the announcement. In both cases there were not enough new notes to exchange, but in India people remained calm and peaceful while in Venezuela it all became chaotic. In the Latin American country, the President said that the aim of the demonetisation was to stop the mafia from taking money to Colombia. But no one believes it. On the other hand, in India the Government started a plan to uncover black money and the last part was the demonetisation of ₹500 and ₹1,000. People had 50 days to change notes. Also there is no embargo on movement between in India and Pakistan, while there is in Venezuela. In both countries mistakes were made, such as the supply of the new currency. India has proved to be more mature in this case, people understood the importance of the demonetisation in order to remove black money and although it’s difficult, it is worth it. In Venezuela violence erupted within days, and the government didn’t explain clearly the reason for demonetisation. “These two stories highlight what should be done before embarking on such an exercise and, more importantly, underline the challenges faced on the way that have to be addressed”.