Social media offers other benefits besides chatting. You can find strategies on any possible subject in the world - including solutions to the current financial crisis. One idea that caught my attention suggested Indians to buy products from Indian companies to reduce our dependence on dollar and other foreign currencies. In the globalisation era where events in other countries could lead to devastating impact on the other, collective action by citizens could prove to be a potent tool to thwart potential dangers.
At the turn of 20th century, Gandhiji initiated Swadeshi movement - a sort of campaign to stop Indians from buying foreign goods. Though the idea was floated politically, the objective was primarily economic. At that time, Indian products used to be routed back from Britain to be sold in India. Since goods primarily came from Britain, Indians had to pay in British pound putting rupee under tremendous pressure. Swadeshi movement was an economic strategy to make India self reliant, improve the economic condition of the country and make rupee stronger. The movement was successful in forcing a frustrated British regime on the negotiation table to seriously deliberate the future of India, including its autonomy.
The success of movement is attributed to Gandhiji’s ability to rally the masses behind an idea that was primarily aimed at securing economic future of India.
History offers us numerous instances of crises successfully handled by controlling collective behaviour. The unprecedented fall in rupee is sure a crisis that can be handled this way. The idea of avoiding foreign products that is currently doing rounds on social media sure has merit. If the masses collectively stop using foreign products, thereby reducing import, the import bill can be partly controlled. It may be noted that even a nominal decline in the demand of dollar can help rupee to strengthen.
Money has become a commodity today. Rampant speculative trading has changed the intended role of money. When mainstream currency is in trouble, adopting ‘complementary currency’ has proved effective. This is because using complementary currencies takes away the pressures from mainstream money offering it the much-needed bandwidth to stabilise. The popular ‘frequent flyer miles’ program is an example of ‘alternate’ currency, which bypasses the mainstream system, yet, offers the same benefits. Communities can come together to form such ‘alternate’ system in their localities, which will prove very helpful in handling the current crisis. It is already happening in the world. Today, more than 2500 local currencies are in use; 400 of these are in UK alone.
Handling a crisis through masses is a potent tool if a country can efficiently exploit. Organizing a campaign to change popular behavior in creating a favorable economic environment is certainly possible. What India (also) needs at present is a movement of sort aimed at controlling imports. However, in a globalised world, it will be difficult for the government to boldly organize a mass movement against a particular currency or a country. If we can decipher, in a subtle way, Indian government has already announced its intentions. By requesting us to avoid buying gold at present, it is indirectly asking us to avoid ‘foreign products’. Gandhiji was successful in creating a favourable environment for a movement. Can we collectively help our country this timeIJ
(The writer is Director, InvestCare, leading wealth advisors. You can reach him at samar.vijay@investcare.in)