1st Edition

Cash, Corruption and Economic Development

By Vikram Vashisht Copyright 2017
    142 Pages 1 B/W Illustrations
    by Routledge

    142 Pages 1 B/W Illustrations
    by Routledge

    Have you ever asked yourself what gives comfort to someone who demands and accepts a bribe, sells drugs or commits professional crimes for money? The majority of these people are not wealthy, and they accept small amounts of money every day from their victims.





    Cash, Corruption and Economic Development examines the causes of corruption and crime and highlights what brings comfort to all those who accept bribes and kickbacks, arguing that it is paper currency because it does not leave a signature of its movement from one entity to another. The author proposes that today, with the technology available, we can make the transition to a paper currency-free economy, which will help reduce corruption and crime and give a boost to economic development. The book analyses the causes of corruption and presents a replacement for the current model, to be implemented by a central bank and followed by banks operating within its jurisdiction.





    This book will be of interest to economists, students of economics and finance, and all those who have suffered as a result of corruption and professional crime and want these practices to end.



    List of illustrations



    Preface



     



    1 We the people



    Impact of corruption on development



    Impact of movement of dirty money on development



    Factors impacting the level of corruption



    An honest bottom cannot have a corrupt top



    Trade brings economic development



    Development has to be sustainable



    2 Corruption no more



    Impact of transition on corruption



    Impact of transition on economic development



    How are payments made after transition to a paper currency- free economy?



    Transfer of money



    The use of fake currency



    Our fight against crime



    Our right to privacy of information



    The sellers of contraband



    Collection of tax revenue



    Solutions for the visually impaired, elderly and those who may lack literacy



    The threat of digital fraud



    The threat of digital fraud – cont’d



    The transition does not need smartphones or computers



    You can travel alone



    An active step



    3 The technicalities



    Partial or complete transition



    The cost of transition



    Factors influencing transition



    Ability to open a bank account with a fake identity



    The speed of processing



    Development of alternative currencies



    The legal tender



    The electronic currency



    The electronic currency account



    The rolling out of the system



    The rolling out of the system – cont’d



    Why does a central bank need the ability to monitor the electronic currency accounts of banks in real time?



    How is the authenticity of electronic currency verified?



    Recalling and replacement of paper currency – the most important factor for transition



    Recalling and replacement procedure – cont’d 1



    Recalling and replacement procedure – cont’d 2



    Recalling and replacement procedure – cont’d 3



    Recalling and replacement procedure – cont’d 4



    Recalling and replacement procedure – cont’d 5



    Need for paper currency to settle international transactions



    Which currency is used and which bank accounts are affected when entities settle their transactions?



    Undirectional conversion needs oversight and direction



    Platforms for the electronic transfer of money



    How will criminals evade the system?



    Central bank is in the centre



    The choice rests with us



     



    Index

    Biography



    Vikram Vashisht is a Certified Practising Accountant (CPA), Master of Accounting, Bachelor of Laws (LLB) and Bachelor of Commerce (BCom), and has previously served as a finance officer in the Australian Army.