Wednesday, February 22, 2017

How India Became Bill Gates De-Monetization Guinea Pig


norberthaering |  Microsoft’s Bill Gates is one of the richest and most influential people on earth. He announced in 2015 that his Bill & Melinda Gates Foundation was aiming at achieving full digitalization of the payment systems of India and other populous developing countries by 2018. This “financial inclusion” program for India dates back to well before Narendra Modi came to power. It was elevated to official US policy by Executive Order in 2012, because the President saw vital US security interests are at stake.

Speaking for the Bill & Melinda Gates Foundation at the “Financial Inclusion Forum” in Washington, organized by the Treasury Department and USAID on December 1, 2015, Bill Gates said (min 17)

“Full digitalization of the economy may happen in developing countries faster than anywhere else. It is certainly our goal to make it happen in the next three years in the large developing countries. We have very significant efforts in Nigeria, Pakistan and India, (and) a dozen other countries, where we work with the central banks to make sure that the right kind of transaction switch is available…(min 20)…We worked directly with the central bank there (India) over the last three years and they created a new type of authorization called the payments bank, and those customers will be able to use their mobile phones to perform basic financial transactions. And 11 entities applied, including all the mobile phone providers, and were granted that payment bank status.”  

"Financial Inclusion" was defined by PayPal-CEO Dan Schulman in an interview during the forum as:
Financial Inclusion is a buzz word for bringing people into the system.”

The cooperation of the Gates foundation and the Reserve Bank of India (RBI) is and has been a very tight one. Nachiket Mor, a “Yale World Fellow”, is head of the Gates Foundation India. He is also a board member of the RBI, with responsibility for financial supervision. He chaired the RBI Committee on the Licensing of Payment Banks and a financial inclusion committee that the RBI convened in 2013.

+++Note: Since this text puts forward a conspiracy theory, I want to let the actors and their documents speak  for themselves as much as possible. Where my own judgement and additional information figure in significantly, as in the following lines, it will be in italics and clearly marked. If you are skeptical, you may want to jump over those sections in italics in a first round, to not be unduly influenced in your interpretation of the quotes from the main actors and their documents.

If the cooperation of Gates Foundation and RBI had been ongoing already for three years in early December 2015, this implies a start in late 2012 or early 2013. This would be more than a year before Narendra Modi became Prime Minister of India. It would also have been almost two years, before Modi visited Barack Obama, told him about his plans to do something for financial inclusion and receive the happy message that the US was willing to help. It would have started three years before the partnership of USAID and the Indian Finance Ministry on financial inclusion was officially announced at that same forum and five years before the RBI and Narendra Modi performed the great and brutal experiment of starving the whole of India of cash for months. All this time, the Bill & Melinda Gates Foundation was quietly working closely and directly with the RBI towards Gates’ declared goal of making the Indian payment system totally cashless by the end of 2018. He did so with backing and involvement of the US-government and with help of allies such as the World Economic Forum.+++

Gates' quotes stood in a context where he stressed that a government’s assistance to the poor and needy should not be delivered by the “incredibly inefficient” method of providing cash or grain to the recipient. “Digitalization helps targeting”, he said, if payments are done via mobile banking. He praised Mexico (min 18), whose Finance Minister, Luis Videgaray Caso, was present, announcing: 

“We are going to use government income support programs as financial inclusion tools”,
as tools to bring everybody into the system. The idea endorsed by Gates and the financial inclusion “community” at the forum was to steer poor people into participating in the digital payment system by making it a condition for receiving any or certain forms of support.

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