Can we end crony capitalism in the world’s largest democracy?

BANGALORE, INDIA: The question was asked by Paranjoy Guha Thakurta, senior journalist,author,economist and academician, in his keynote address titled: Understanding the Political Economy of India, on the first day of the 12th edition of C-Change on Friday.

Citing examples of the Coalgate scam, and thereafter responding to a question the impact of higher spectrum bids, he replied, “The former PM Dr Manmohan Singh has been summoned in the Coalgate scam. Raja shifted the blame on Dr Singh. My question is could we have done it better? Could the allocation have been done in a fair and transparent manner, so as not to be accused of a bias?”

Coming down heaving on the politician-criminal nexus, he roared, “The nexus between politicians and goons is like the fountainhead of Gangotri.”

These have an impact, and one of the major sectors that witnessed the setback was food. Inequalities in India have increased in India in the last 10 years because of food inflation. That does not mean that the rich have become richer and the poor have become poorer; but the gap between the rich and the poor has widened, he noted.

Similarly, replying to a query on the price difference between 2G and 3G spectrum, he said, “It was a scam. They were allocating the spectrum at the 2008 rates!!! Why did they not follow due diligence? You can allot spectrum the way you allot cinema tickets.”