Money Grows on Trees
- How not to choose social collapse -

Amar Yumnam *

Let me start with a historical lesson on how the belief that money grows on trees can bring about a social collapse. This relates to the French experience of the 1790s, and for anyone desiring a lucid examination of this the 1896 book 'Fiat Money Inflation in France' written by Andrew Dickson White is interesting read.

In 1789 France was suffering from economic decline, and the idea of lack of money as the cause of the decline caught the attention of many. If this lack was the cause of the decline, more of it would be pleasure. So the experts advocated fiat money (legal tender, especially paper currency, authorized by a government but not based on or convertible into gold or silver) as the route to 'securing resources without paying interest' so that there could be something from a world of nothing.

Once a decision was taken on this principle, politicians were working overtime crazily printing money stealthily. This was the time the printing press workers were working in a very un-French-like way for fourteen hours a day. Then the consequences did not take long to hit the French economy. Prices rose, savings declined with debt overhangs, gambling spirit ruled the roost, and well bribery had a heyday. Naturally the French economy collapsed in 1796.

The Reminder: I have been reminded of this French experience observing the various construction activities around this land of jewels. The phenomenon here is not exactly the same as was in France in the later eighteenth century, but the way construction activities are executed here has consequential features of printing money as if it grows on trees. Construction, anywhere in the world, has been identified as the activity where maximum corruption takes place. It relates mainly to creation of new assets in the rest of the world.

However in the case of Manipur, what has been so disturbing is the repetition of the same work in the same place and within a very short span. One conspicuous example is the construction or repairing (only God knows what it is) of the road dividers in the Imphal Municipal area; it is now a year-long and year after year display of presence of governance in the land. One may say that the beauty is being maintained, but I am rather disturbed by the negative social lessons it provides implicitly.

Development: Development is not just expenditure. It occurs only when the expenses being made are based on conscious, conscientious and effectiveness principles, and produce transparently lasting positive impacts. It is not construction for the sake of construction which is important, but construction to serve the cause and render the services expected of them that is paramount.

But looking at any of the constructions happening around the sweet land ours, one cannot help feeling that these are nothing but a repeat of the French experience of the 1790s in a different form. Effect-wise, the various construction activities happening here are like the stealthy printing of money in France with all the negative social consequences.

As I said earlier, it is not the phenomenon of repeating the same work in the same place and within a very short time span which is damaging, but the larger social lessons it imparts which are dangerous. Well, we know that in many mountains of the land, we still do not have roads though we may forever repair our road-dividers in the heart of the State. But this is not what I have in mind today.

The worse impact is the message this transmits to the larger public.

First, it conveys that anything goes in the name of developmental expenditure. Secondly, it establishes developmental expenditure is the area where money literally grows on trees.

Thirdly, and very dangerously, people start presuming that development can mean and can happen only in this fashion. Now since the lessons are being taught right in the heart of the State's capital, the impact is much wider and deeper cutting across social and age groups.

At this point, we may justifiably ask as top from where these money really before they start growing on the trees of Manipur. Well, these come from the various revenues the administration collects from the tax-payers.

Manipur too by now have her share of fairly hefty tax payers. It is nothing but a crime if the sacrifices of these tax payers are converted into money growing on trees by the very administration instead of positively affecting the long run developmental fate of the larger public.