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Crony Capitalism and India: Before and After Liberalization


  • Mazumdar, Surajit


This paper, the second in the series, initiates the examination of the nature of the relationship between private capital and the State in India. While the principal focus is on the present context of India under a liberal economic policy regime, both the past of Indian capitalism and the past discussion on the concentration of economic power are also brought into the picture to substantiate the key arguments. The paper provides theoretical and also some limited empirical substantiation for the proposition that unlike what would be the prediction of crony capitalism theory, liberalization, rather than reducing the degree of subordination of public authority to private capital, has only facilitated an enhanced degree of state capture

Suggested Citation

  • Mazumdar, Surajit, 2008. "Crony Capitalism and India: Before and After Liberalization," MPRA Paper 19627, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19627

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    References listed on IDEAS

    1. Nellis, J., 1999. "Time to Rethink Privatization in Transition Economies?," Papers 38, World Bank - International Finance Corporation.
    2. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    3. Arvind Virmani, 2004. "India's economic growth: From socialist rate of growth to Bharatiya rate of growth," Indian Council for Research on International Economic Relations, New Delhi Working Papers 122, Indian Council for Research on International Economic Relations, New Delhi, India.
    4. Tarun Khanna & Krishna Palepu, 2000. "Emerging Market Business Groups, Foreign Intermediaries, and Corporate Governance," NBER Chapters,in: Concentrated Corporate Ownership, pages 265-294 National Bureau of Economic Research, Inc.
    5. Mazumdar, Surajit, 2008. "Crony Capitalism: Caricature or Category?," MPRA Paper 19626, University Library of Munich, Germany.
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    Cited by:

    1. Christopher Coyne & Lotta Moberg, 2015. "The political economy of state-provided targeted benefits," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(3), pages 337-356, September.
    2. Mazumdar, Surajit, 2011. "Continuity and Change in Indian Capitalism," MPRA Paper 38907, University Library of Munich, Germany.
    3. Mohammed Said Saadi, 2016. "Moroccan Cronyism: Facts, Mechanisms and Impact," Working Papers 1063, Economic Research Forum, revised 11 2016.
    4. Damien Krichewsky, 2010. "Negotiating the Terms of A New Social Contract: Private Companies, Civil Society and the State in India," Working Papers id:2394, eSocialSciences.
    5. Krichewsky, Damien, 2014. "The socially responsible company as a strategic second-order observer: An Indian case," MPIfG Discussion Paper 14/10, Max Planck Institute for the Study of Societies.
    6. Paul Dragos Aligica & Vlad Tarko, 2014. "Crony Capitalism: Rent Seeking, Institutions and Ideology," Kyklos, Wiley Blackwell, vol. 67(2), pages 156-176, May.
    7. Krichewsky, Damien, 2011. "Crise et modalités d’élaboration d’un compromis social dans le nouveau capitalisme indien," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 9.

    More about this item


    India; Crony Capitalism; Liberalization; Concentration;

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism


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