corruption

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• SMT. CHANDIBHAI HIMATMAL MANSUKHANI COLLEGE

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AGENDA

• Corruption (Introduction)
• Causes Of Corruption
• Overseas Black Money
• Tax Heavens
• Black Money Involved
• The Great Indian Silence
• The Fact
• Effects Of Corruption
• India Must Act

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INTRODUCTION

• Oldest and complicated phenomenon
• A kind of bribery
• Fraud
• Nepotism (partiality)
• Need driven
• Greed driven
• Cronyism

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Causes Of Corruption

• Lack of transparency (inflow and outflow of
  money).
• Silence.
• Poverty.
• Greed.
• Illiteracy.
• Unmet expectations.
• Low public sector salaries.
• Increasing rate of tax.
• Increasing rate of inflation.
• Increasing rate of competition.

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Overseas Black Money

• the curse that stops India from developing

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What Are Tax Havens?

• Small countries like Switzerland, Angola,
  Bermuda, etc that act as places of registration
  for overseas non-resident companies.
• They have zero or very low income tax.
• They ask no questions on the origins of the
  money coming into their banks.
• They keep all banking records secret and
  cooperate very little with other countries.

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Money Involved

• Total dirty money in tax-havens 11.5 trillion
  (rs 7.5 crore-crore).
• 50 of this money belongs to the developing
  countries like India.
• Estimated Indian black money in foreign banks
  500 billion (rs 25 lac-crores).
• They have no contribution to the world, except
  as points on the world-map where dirty money is
  kept safely.
• Avg. Size of 34 such point-countries 17 kms by
  17 kms.

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The Great Indian Silence

• Germany France threaten Blacklisting of
  Switzerland. India keeps quiet.
• Germany and France take the issue of secret
  banks and tax havens in the g20 preparatory
  meeting at Berlin in February 2009. India keeps
  quiet.
• German govt. Offers to open Secret Names of the
  account holders in LGT bank of Liechtenstein.
  India keeps quiet.

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The Great Indian Silence

• These two nations and supported by UK and the US
  raise the voice against secret banks and tax
  havens in London in April 2009, India keeps
  quiet.
• Why India has not effectively worked to get the
  names of several Indians believed to be in the
  secret records?

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The Fact

• Unholy relations between Politicians,
  Bureaucrats and Businessmen.
• At least 70-80 billion goes out every year.
• Indias black economy is 5 percent of GDP
  growth.
• Indias size of the economy would have been
  9trillion.
• India has been witnessing unprecedented growth
  in its black economy.
• Now estimated to constitute an alarming 50 of
  countrys GDP growth.

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So what does that lost 9 trillion mean to India?
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Effects Of Corruption

• No enhanced social infrastructure .
• Improper health care services.
• Poor educational facilities.
• Less Employment opportunities.
• 90 percent of the hungry mouths in the country.
• Every family could have had a home.
• Lose 5 percent of its GDP over the last 30
  years.
• Opportunity cost.
• The worlds second-largest economy, just after
  the US.

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Continued

• Lack of Transparent and technologically
  efficient economic system.
• We could have edged ahead of the us and china
  together in terms of production vis-a-vis
  consumption.
• Generation is primarily
• Consumption-driven,
• Partly production-driven and
• Wholly caught up in corruption.
• More importantly, we would not have had to
  witness the Anna hazare movement to root out
  corruption if we didnt have a black economy.

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India Must Act

• Develop national will agenda against black
  money in foreign banks.
• Get immigration details of the 25,000 frequent
  travelers to tax havens.
• Upgrade financial action task force (fatf)
  membership to full.
• Make specific anti-tax haven laws.
• Publicize entire economic history of overseas
  account holders.
• Ensure India friendly global anti-secret
  banking rules.
• Appoint a special emissary to Germany
  Switzerland.
• Develop a proper institutional infrastructure
  to fight the flight-of- capital.

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Conclusion

• Corruption is universal.
• Both developed and developing, in the public and
  private sectors.
• Corruption is a major constraint that is
  hindering their
• Economic,
• Political and
• Social development,
• Hence, view it as A problem requiring urgent
  attention at the highest level.

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Stop Corruption..Save India
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REALLY HONEST PERSON WILL NOT
CLOSE HIS EYES TO CORRUTION
CLOSE HIS EARS TO COMPLAINTS
KEEP QUITE ABOUT CORRUPTION
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