Page 36 - Banking Finance April 2020

ARTICLE

POLITICAL FUNDING

IN THE AGE OF

CRONY CAPITALISM:

AN EXPERIENCE

FROM INDIAN

BANKING SECTOR

Abstract till today whatever major policies taken by the Government
The economic reforms of 1991 not only transformed the related to financial system has benefitted more the
industrialists rather than the common people by easing the
country economically but also changed the political outlook
of the country. The country which had an inclination towards flow of public money to corporate houses either directly or
indirectly. Directly by allowing Public sector banks to
socialism slowly changed its stance towards capitalism. This
aggressively lend corporate sector or directing Public sector
slowly paved the way for development of Crony capitalism
culture in the Indian politics. Corporate donations to political banks to write off bad corporate loans. The proposed FRDI
Bill was also a step taken by Union Government to create a
parties are now seen as a symbol of growth and success of
political parties. Thus the policies taken by Government will future avenue to fuel in the public money to rescue the weak
PSBs by inserting the controversial 'bail-in' clause therein.
be more pro-corporate rather than pro-people. From 2004
Moreover the issue of electoral bonds will further the interest
About the author of the corporate in decision making of the country as huge
anonymous corporate donations will be available to political
Aritra Ranjan Das parties. Thus a deep introspection for political parties is
Assistant Professor needed to cleanse the greedy political culture and check the
Dept. of Commerce all pervasive nature of the moneyed interest groups.
St. Xavier's College
Introduction
Dr. Ram Prahlad Choudhary The opening up of doors of Indian economy in 1991 paved
Professor way for capitalism in India. The change proved to be
Dept. of Commerce masterstroke in the coming years as it placed India in a path
University of Calcutta
of higher growth trajectory and India became one of the

34 | 2020 | APRIL | BANKING FINANCE