Author: Arun Kumar
Foreword/Introduction: V P Singh
Publisher: Penguin
Year: 2002
Language: English
Pages: 312
ISBN/UPC (if available): 0140278591
Description
Empirically rich and finely argued, this book is an excellent aid to understanding the intricacies of the black economy which impinges on our daily lives in numerous ways.
In 190-91, according to various estimates, the black economy constituted about thirty-five percent of the national economy which was larger than either its primary or secondary sectors. Since then black income generation has increased not only through 'legal' activities like real estate transactions and the share market, and 'illegal' ones like the hawala, financial scams and gold smuggling, but via instances of corruption like the bribes paid to the police, inflated election expenses, captivation fees and tuitions, among others. The New Economic policies expected to counter its growth has been unsuccessful in containing it.
This long and perceptive essay critically examines the standard explanations for the causes and consequences of black income generation and the methods suggested for curbing it. Among the issues addressed here are: the role of high taxation and excessive controls in fuelling tax-evasion and hence black income; the adverse effects of black income on the macro economy; the resultant inefficiency, waste and sub-optimality in the economy and society. The author pleads for recognizing the role of criminalization and the emerging nexus of the businessman, politicians and bureaucrat in perpetuating the black economy.
REVIEWS:
A great read for anybody who wants to know how and why the black economy is spreading in India.
-Business Standard
Superbly argued, and written in a language devoid of jargon…this book is meant for any concerned and intelligent reader.
- The Telegraph
Contents
Preface
ONE
Introduction
TWO
Defining the Black Economy
THREE
Measuring the Black Economy
FOUR
The Macroeconomic Linkages
FIVE
Cause of Black Income Generation
SIX
Consequences of the Black Economy
SEVEN
Remedies for Curbing the Black Economy
Appendices
Glossary
Bibliography