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Demonetisation may have caused infant mortality to rise in key states, finds new study -Shoaib Daniyal

-Scroll.in

The unprecedented reversal comes after 15 years of steady progress by India in reducing infant deaths

On November 8, 2016, the Indian government undertook a drastic policy decision, choosing to ban high value currency notes in circulation. Overnight, 86% of India’s currency became worthless, throwing live and livelihoods in disarray.

Now new research is pointing to the widespread impact this dislocation might have had on human development. A new paper by economists Jean Drèze, Aashish Gupta, Sai Ankit Parashar and Kanika Sharma finds evidence of “slowdown, pauses, and reversals in infant mortality decline in large parts of India in 2017 and 2018”.

Given that till 2016, India had been clocking impressive declines in infant mortality, the researchers argue that the sudden setback was probably due to demonetisation.

A sudden hit

Infant mortality rate measures the number of children who die before their first birthday out of every 1,000 live births. It is one of the most fundamental measures of human development.

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