[whowalrus]

Thanks. So if I'm not wrong, what you're saying is even with demonetization and a transaction cap, they will barely make a dent in the state of black money in India. Am I correct?

From what I've read, I would agree with that.

[wav-part]

Remove "and a transaction cap" part, you are correct.

Going cashless will solve terrorism and counterfiet problem. World is going cashless and naturally India would have gone too without the huge cost of banning notes.

However I have different issue with this, allow me to quote

http://economictimes.indiatimes.com/news/politics-and-nation...

Corruption and black money are a consequence of big government, of one set of individuals having discretionary powers over the actions of others. If Modi was serious about tackling black money, he'd bring about institutional changes that would take us towards the minimum government he had promised in his 2014 campaign. Instead, government keeps getting bigger, controlling more and more of our lives. More government = more corruption.

Also Center/Modi wants to make prosecuting corrupt public officials more difficult and bribe-giving a criminal offence. Considering giving bribe is unavoidable fact-of-life and cost of doing business in India, Center wants to make CEOs responsible [1] [2].

And I say this as someone who voted for Modi.

[1] http://economictimes.indiatimes.com/news/politics-and-nation...

[2] http://indianexpress.com/article/india/india-news-india/brin...

[msh]

The size of the government is not the deciding factor.

Example is Denmark with one of the largest governments in the world but still among the countries with lowest corruption.

[wav-part]

> The size of the government is not the deciding factor.

For India it is. Its that simple.

What do you suggest Indian Government should do to reduce corruption while still holding same power if not increase it ? Laws & executions have failed consistently. It wont be different this time.

Corruption is a social problem with huge momentum. It took a while for it to creep in and it will take a while to creep out (like all social problems).

Reducing unneccessry regulations and red tapes are only quick fixs we have.

[msh]

I am not sure I agree completely but you do have a point.