Prof Arun Kumar expressed the view that the root of corruption was the burgeoning black economy.
Referring to his work on the Black economy, Prof Arun Kumar pointed out that it had been made out that the black economy was a consequence of the license permit raj which prevailed in the period before privatization and liberalization. However facts showed that the scale of black money had increased by leaps and bounds in the period since liberalization privatization program was launched.
There was a triad of capitalists, politicians and bureaucrats who worked in tandem to defend the black economy. Prof Kumar pointed out that there is a mistaken notion that all black money is stashed away in Swiss banks. In fact this is not true. Today there are over 76 tax havens all across the world and black money generated in India is stashed away in all these havens. In fact, because of various factors, over the past three years, black money is being shifted out from Swiss banks to other tax havens.
Prof Kumar pointed out that the period of colonialism was characterized by flight of capital from India. This has continued after independence, and it has greatly increased in recent decades.
He pointed out that there is no shortage of laws to curb black money, but the problem is that they are not being implemented.
In his book he has published the detailed figures of the percentages that have to be paid for various deals.
Only a powerful people’s movement could force the government to unearth black money which is at the root of corruption.
