NEW DELHI: Over the past weeks one has witnessed scathing criticism of Prime Minister Narendra Modi 's demonetisation scheme in large sections of media. Much of the criticism rightly blasts the inept quality of implementation; as well as the (terribly underestimated, in all likelihood) blow to economic activity , in the short term.In the process, critics have also tended to write off any potential long term benefits of the scheme. “Cash is barely 6% of unaccounted assets, what real difference will it make?“; “the flow of black income is the issue, not the stock; black money will again get re-generated“; “it's mainly a political gambit“ are some of the refrains one hears.The scheme's critics may perhaps be throwing the baby out with the bathwater.As shocking as some of the implementation gaffes have been, the jolt of demonetisation ­ along with all the other tough measures on the anvil ­ may well represent an inflection point in our society's quest for transparency . Not because of the physical amount of black wealth it will flush out of the system here and now.But because of its potential to alter our society's fundamental attitudes towards undeclared income, going forward.Let's, for a moment, examine the structure and sociology of black money in India. Unaccounted wealth has two very different sources: income from illegal activity ­ crime, corruption etc; or undeclared income from commercial activity that's inherently legal.The latter is likely to form the vast bulk of black money in India. Hence the main contributors to the stock of black money would not be hardened crooks accustomed to a life or risk and danger.Rather, they would be regular denizens of society ­ morally dodgy , yes, but not deviously criminal: doctors and lawyers, traders and brokers, businessmen of various hues ­ or indeed almost anyone who has bought or sold property in the repurchase market. Most people who don't fully declare their income do so simply because they get away with it, without fear of getting caught. Society doesn't place a great deal of moral pressure against the malpractice either; it tends to judge tax evasion with a fair degree of indulgence, indeed often with a degree of moral righteousness.“The government misuses our hardearned taxes so badly , why shouldn't one avoid paying whatever tax one can get away with“, seems to be the collective voice.In terms of cold economics, the cost of the tax payable is seen by most as being more than that of the risk undertaken.Now, that equation is about to change quite decisively. The trauma and sleepless nights of the past weeks have been a rude awakening for lakhs of hitherto blasé evaders.More importantly , the cost of laundering (or now, official disclosure) has soared to rates well beyond the top tax rate of 30%. Besides, the dragnet is further closing in, in a variety of other ways: a strong benami act; stricter curbs on transactions using cash; agreements with Swiss banks and other havens for parking funds; and fears of raids on lockers. And with a surge in e-payments paving the way to our becoming a relatively cashless society , tax evaders know that they will increasingly leave a traceable footprint behind.The cost of tax evasion is hence likely to increase exponentially compared to that of compliance. It's a safe bet that most hitherto evaders would now prefer to come clean... to breathe easier, and to enjoy the productive benefits of clean wealth.Over time, paying taxes could well become the new normal, just like it is for crores of salaried people who take it in their stride without much thought. That in turn could well help society cross a barrier in its mind, with respect to its basic attitudes towards compliance and transparency .Having set a tiger amongst the pigeons, the PM now needs to ensure that the momentum unleashed reaches its logical conclusion. Much of the commentary in recent weeks exhorts him to shift focus to arresting the generation of black income at its source.That is advice i don't think the PM needs; if anything, he needs to be cautioned against similar carpet-bombing when tackling the flow of black income.He could instead try introducing a carrot in addition to the many sticks being lined up. While a 30% top rate (35% actually , after various extras) seems comparable to that in the developed world, truth is our taxes don't buy us anywhere near the social security benefits that the latter provides their citizens. Apart from income tax, the GST rate being proposed is also far higher than global norms.With the vast increase that can be expected in the number of taxpayers, the PM can bet on the incentive of lower taxes too, to further rebalance the economic equation between evasion and compliance.In conclusion: we may be going through a traumatic period of chaos and short-term economic setbacks (much of which could indeed have been avoided with better implementation planning).But let's not lose sight of the big picture in the process. We may well be at an inflection point in our journey towards becoming a cleaner society. And if we do turn a corner in our minds as a society , the pain we are currently going through would feel like a worthwhile sacrifice, when we look back.The writer is former Executive President of BCCL