The Correlation Between a Cashless Society and Reduced Corruption: Debunking Myths and Reality
As societies embrace digital payments and move towards a cashless future, much debate emerges over the effect of this transition on enhancing transparency and curbing corruption. This article examines both the logical arguments and empirical evidence to reveal a more nuanced understanding of this relationship, highlighting myths and realities in the context of financial transactions and integrity.
How Does Digital Transactions Impact Corruption?
Every transaction made in a cashless society is recorded through banking channels. For instance, if an individual fails to declare their income or underreports it, the discrepancies can be easily identified through financial statements and bank statements. Additionally, the ease of reporting and tracking expenses, within certain limits, ensures that financial irregularities are harder to hide. In the modern era of strict surveillance, it's almost impossible to accept online payments for bribes, further deterring corruption.
However, while cashless payments can effectively eradicate small amounts of corruption, they might not significantly impact large-scale corruption. Small bribes are often exchanged in cash, making them more difficult to track. In contrast, large-scale corruption is often facilitated through complex financial maneuvers. Digital transactions do not necessarily make it easier to bribe, but they do simplify the process of transferring and documenting large sums of money as gifts or donations.
Does Cashless Society Lead to Less Corruption?
It is often argued that becoming a cashless society can further empower the banking mafia, rather than reduce corruption. Transactions between individuals and businesses require the payment of service fees, which can add significantly to the cost of doing business. For instance, a medium-sized shop might have to pay Rs. 3000 per day in service charges, translating to Rs. 100,000 per month. Imagine the substantial financial burden this places on countless businesses across India, and the revenue such businesses lose to the banking mafia.
This situation highlights a form of illegal financial activity known as "daylight robbery," where large sums of money are siphoned off through excessive fees and disguised as legitimate banking charges. The demonetization efforts, while intended to curb corruption, are unlikely to have a lasting impact on black money or the revenue generated from such illicit activities. Moreover, the international banking mafia has found ways to mitigate the financial loss to India, further complicating efforts to reduce corruption through the cashless route.
The Role of Cash in Corruption
While cash remains a primary medium for corruption, the shift towards digital payments has certain implications. The middle and lower-middle classes, who often rely on cash for daily transactions, are not inherently more corrupt than other socio-economic groups. Corruption often thrives in systems marked by poor laws, poor accounting systems, and inadequate monitoring. It is crucial to address the underlying issues that make corruption possible, rather than focusing solely on the method of payment.
It is important to recognize that no country in the world is entirely cashless. The transition to a cashless society brings its own set of challenges and requires comprehensive reforms in governance, transparency, and accountability. The focus should be on creating a society where corruption is not just reduced but eradicated through better systems and stricter enforcement.
In conclusion, while a cashless society can provide valuable tools to track and minimize corruption, it is crucial to address the root causes of corruption, including poor laws, accounting systems, and monitoring mechanisms. The real battle against corruption lies in the quality of governance and the commitment to transparency and accountability in all sectors of society.