By Binaya Rijal
Economy is the backbone of national progress, but its true strength lies in how effectively it empowers people. In recent years, demonetization though often debated has highlighted the urgency of shifting toward transparent and technology-driven financial systems. For new generations, especially Nepal’s Gen-Z, Revolutions has opened opportunities to build digital infrastructures that ensure inclusion, fairness, and accountability.
Empowerment through modern systems means that even marginalized communities gain equal access to resources, education, and participation. A well-designed economy discourages corruption, reduces black money, and strengthens trust in governance. When linked to the electoral process, it ensures that money power and unfair influence cannot easily distort democratic outcomes. Digital payment systems, transparent funding mechanisms, and blockchain-based records could revolutionize elections by reducing manipulation. This interconnection of economics, empowerment, and technology-driven reforms creates a foundation for cleaner politics. New systems inspired by demonetization’s lessons can nurture a culture of accountability and discourage “dirty political assessments.”
For the country, this means channeling resources into development projects rather than political patronage. For citizens, it fosters empowerment, as their voices weigh more than financial influence in elections. For new generations, it inspires innovation, responsibility, and pride in building a fairer system. In the long run, such reforms lead to sustainable development, stronger democracy, and greater global competitiveness. Thus, economy provides the structure, empowerment provides the purpose, and demonetization provides the spark to redesign systems that serve people, not power.
Gen-Z Revolution and Systemic Reform
Nepal’s Gen-Z revolution is not only about change but about creating systems that secure a just and corruption-free future. Economics must work hand in hand with empowerment, ensuring that every citizen can access opportunities and participate in growth. Demonetization has shown the need for transparent reforms, but stronger systems are required to tackle deep-rooted corruption.
One area of urgent reform is the election system, where money and unfair influence often distort democracy. A new approach could include:
- Digital voting platforms that are secure and accessible, reducing manipulation and making participation easier for citizens in both cities and remote areas.
- Blockchain-based election records to make vote counting fully transparent, leaving no room for hidden dealings.
- State-regulated digital campaign funding systems to monitor and cap political spending, ensuring elections are based on ideas, not wealth.
- Mandatory disclosure of assets and digital auditing of campaign finance to prevent misuse of money and resources.
- Civic education programs for youth and rural citizens to empower voters with knowledge and awareness, reducing the impact of false promises and money politics.
Such reforms would shift elections away from dirty politics toward fairness, accountability, and genuine representation. Gen-Z, with its digital fluency and reformist spirit, can play a leading role in designing and advocating for these new systems.
India’s demonetization in 2016 delivered mixed results, but it also brought several important outcomes. It significantly reduced the immediate circulation of black money and counterfeit currency, weakening illegal cash-based transactions. The move encouraged millions of citizens to open bank accounts, boosting financial inclusion through the “Jan Dhan Yojana.” It accelerated the adoption of digital payments, making India one of the fastest-growing digital economies in the world. For the political system, it reduced cash dominance in elections, pushing parties toward more transparent funding channels. For citizens, it strengthened awareness of accountability, honesty, and integrity as essential values for a cleaner economy. Though challenges remain, demonetization served as a wake-up call that reforms must aim at both economic modernization and political integrity.
Demonetization as a Reform Catalyst
In today’s changing world, the demand for transparency, accountability, and fairness in politics and economics has become stronger than ever. For countries like Nepal, where corruption and money-driven politics have weakened trust, demonetization stands out as a vital tool to push reforms. By targeting black money and unaccounted wealth, demonetization can weaken the power of corrupt actors who misuse financial resources to influence elections and policies.
Elections are the heart of democracy, but when they are dominated by hidden money and unfair practices, people lose faith in the system. Demonetization directly challenges this by reducing the circulation of illicit funds used to buy votes and manipulate outcomes. At the same time, it can push the country toward digital payment systems, transparent banking, and regulated political funding. This shift would empower ordinary citizens, as elections would then depend more on ideas, performance, and accountability rather than financial muscle.
From an economic perspective, demonetization can act as a catalyst for broader reforms. It creates urgency to modernize financial systems, encourage tax compliance, and bring more people into the formal economy. Combined with e-governance, digital banking, and strict monitoring of campaign finance, it can strengthen both democracy and the economy.
Importantly, such reforms can empower marginalized communities by giving them easier access to financial services, reducing dependence on cash, and protecting them from exploitation. Nepal’s new generation understands that a nation cannot move forward if corruption eats away at both democracy and development.
Demonetization, paired with transparent electoral systems and modern economic reforms, offers a chance to rebuild trust and create a society where power lies with people, not hidden money. It is not just about withdrawing currency. it is about withdrawing corruption, empowering citizens, and laying the foundation for fair elections and a stronger economy. For a country striving for sustainable development and a brighter future, demonetization is a vital tool that must be integrated into broader reforms. Only then can Nepal move from the revolutions of the past to a reformation of the future, creating a society that is just, transparent, and prosperous
(Writer Binaya Rijal is currently a student of M.Phil. (master’s in philosophy) Faculty of Management Tribhuvan university, Kathmandu Nepal. He has more than twenty-five years of Banking experience and retired from Ceo post. Mr. Rijal completed his MBA from PUMBA, Pune university in 1997.)