Dear Friends & critics
As I investigate and report on India’s criminals and enemies of the state – politicians, members of law enforcement, gurus, charlatans, spiritual leaders, charitable organisations, industrialist, businessmen/women, I feel sick to my stomach.
My sickness stems from the sheer immorality, illegality, connivance, cruelty, and the impunity they enjoyed for decades and continue to do so today.
I have taken the liberty to share some observations made in the GFI report – The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008: A new report from Global Financial Integrity, November 2010.
- The report estimates that tax evasion, crime, and corruption have removed gross illicit assets from India worth US $462 billion (adjusted value) from 1948-2008.
- These illicit financial flows were generally the product of: tax evasion, corruption, bribery and kickbacks, and criminal activities.
- The report also finds that the faster rates of economic growth since economic reform started in 1991 led to a deterioration of income distribution which led to more illicit flows from the country.
- India’s poor state of governance is reflected in a growing underground economy which in turn has fueled more transfers of illicit capital from India. This analysis is cast in terms of a pre- and a post-reform period spanning a total of 61 years since independence.
- “This report puts into stark terms the financial cost of tax evasion, corruption, and other illicit financial practices in India,” said Global Financial Integrity director Raymond Baker. “It also shows that these illicit outflows contribute to stagnating levels of poverty and an ever widening gap between India’s rich and poor.”
- India’s aggregate illicit flows are more than twice the current external debt of US $230 billion.
- Based on the last five years of the study, 2004-2008, India lost assets at a rate of US $19 billion per year.
- Total capital flight out of India represents approximately 16.6 percent of India’s GDP as of year-end 2008. In present value terms, India lost an equivalent of about 36 percent of its 2008 GDP which represents a staggering loss of capital.
- 68% (percent) of India’s aggregate illicit capital loss occurred after India’s economic reforms in 1991.
- From 1948 through 2008 the Indian private sector shifted away from deposits into developed country banks and moved more of its money into offshore financial centers (OFCs). The share of OFC deposits increased from 36.4 percent in 1995 to 54.2 percent in 2009.
- India’s underground economy is closely tied to illicit financial outflows.
- The total present value of India’s illicit assets held abroad ($462 billion) accounts for approximately 72 percent of India’s underground economy. This means that almost three-quarters of the illicit assets comprising India’s underground economy—which has been estimated to account for 50 percent of India’s GDP (approximately $640 billion at the end of 2008)—ends up outside of the country.
- The finding that only 27.8 percent of India’s illicit assets are held domestically support arguments that the desire to amass wealth illegally without attracting government attention is one of the primary motivations behind the cross-border transfer of illicit capital.
- In the post-reform period of 1991-2008, deregulation and trade liberalization accelerated the outflow of illicit money from the Indian economy. Opportunities for trade mispricing grew and expansion of the global shadow financial system—particularly island tax havens—accommodated the increased outflow of India’s illicit capital flight.
Author’s thoughts: As long as we do NOT unite under the tri-colored flag without reservations, or feelings of bias or prejudice towards our fellow citizens, the government will NEVER be held accountable to its people. Majority of our politicians are criminals, first step is to change the electoral process. Set up high standards for those who run for public office and keep them in check through checks and balances, internal and external.
Keep our judiciary and it’s officers free from political, societal or legislative influence or pressure. I urge one and all to UNITE and fightback. One great fighting tool is Public Interest Litigation (PIL). Stay United, Stay Involved, Stay Vigilant, & always be brave to fight the enemies of the state. ~ Jai Hind.
Do want to know what Mr. Phillipe Weltie, the Swiss Ambassador to India had to say about sharing information with the Indian Govt. on black money in Swiss bank accounts of Indian nationals?
If you thought the President of India Mrs. Pratibha Patil and the her government were proactive, read the article. ~ Thank you.
Dear Friends & critics
The finance minister of India has shelved (fails to debate/discuss), the White Paper on Black Money.
Click on the attached link to access the White Paper in it’s entirety (108 pages). Good job by The Hindu, newspaper.