This document discusses corruption in India. It begins with an introduction to corruption, defining it as bribery, fraud, nepotism, and cronyism. It then outlines some of the key causes of corruption in India like lack of transparency, poverty, and low public sector salaries. It also discusses the issue of black money held overseas in tax havens, estimating that India loses $500 billion held abroad. The document argues that India needs to take stronger action to address this problem by getting details on account holders, changing laws, and appointing representatives to negotiate with other countries. In conclusion, it states that corruption undermines economic, political, and social development.

1. SMT. CHANDIBHAI
HIMATMAL MANSUKHANI
COLLEGE

2. AGENDA:
1. Corruption (Introduction)
2. Causes Of Corruption
3. Overseas Black Money
4. Tax Heavens
5. Black Money Involved`
6. The Great Indian Silence
7. The Fact
8. Effects Of Corruption
9. India Must Act

4. INTRODUCTION
 Oldest and complicated phenomenon
 A kind of bribery
 Fraud
 Nepotism (partiality)
 Need driven
 Greed driven
 Cronyism

5. 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.

6. OVERSEAS BLACK
MONEY
…

7. 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.

8. 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.

9. 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.

10. 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?

11. THE FACT
 Unholy relations between Politicians, Bureaucrats and
Businessmen.
 “At least $70-80 billion goes out every year.
 India’s black economy is 5 percent of GDP growth.
 India’s 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 country’s
GDP growth.

13. 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 world’s second-largest economy, just after the US.

14. 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
a) Consumption-driven,
b) Partly production-driven and
c) Wholly caught up in corruption.
 More importantly, we would not have had to witness the Anna
hazare movement to root out corruption if we didn’t have a black
economy.

15. 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.

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

18. REALLY HONEST PERSON WILL NOT