Black and White Money

Two months ago, the Hawala took politicians by surprise in India and raised certain fundamental questions regarding the incestuous association between national-level politicians and the businessmen who have been holding the reins of the Indian economy. The Supreme Court´s directives to the Central Bureau of Investigation is the start, hopefully, of a much-needed drive against a rot that everyone knows exists but which has flourished unhindered thus far. The overall economic implications of such a drive is to make the Indian economy more transparent, efficient and productive. To that extent, the decision handed down by the justices is a positive economic step.

If the politics and economies of South Asia were more inter-linked, the repercussions of Hawala would have travelled swiftly to all other capitals. As things stand, however, commentators in each of India´s neighbours seem content to draw parallels and leave it at that. It is clear that none of these polities are ready, as India seems to be, to dip into the cesspool. In Karachi as in Kathmandu, they would rather pinch their noses and look away in a show of distaste.