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Q.

Is licence raj and controlled regime once prevailed in India the main reason for corruption here? Your views?

Asked by Good Citizen, 19 Jul '10 03:13 pm
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Answers (5)

 
1.

1)Well, if I have to agree to the above, there is a condition. What about today s situation? There are not many controls but corruption and plundering the country has reached unimaginable proportions. It looks like nobody could beat Indians in this regard today. Why?
2)I do agree that too much control leads to the creation of corrupt regimes. At the same time, free for all situation also creates the similar situation.
3)You may say that there is no license raj today. It is true to some extent only. But that is not the whole truth. Let me give an example of recent Tata Telecom allegation that GSM operators organization works like a mafia. There is some truth in it. Even in the so called free regime of today, a few entrenched businessmen call the shots at the expense of honest businessmen. What does it speak?
4)To sum up, it looks like Indians have made corruption a way of life, especially those who are in the position to exploit the situation to their advantages.
5)Let me tell y ...more
Answered by Tony Fernandez, 19 Jul '10 04:43 pm

 
  
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2.

Comrade LICENSE RAJ = PRODUCTION QUOTA gone wrong.

When u have production quotas it is to enable that raw materials (ESPECIALLY LIKE SAND, COAL, FOOD AND RAW STEEL) don't get stockpiled or hogged up by 1 mfr. Today, many businessmen (Ambani is a ace in this) can create artificial shortages by simply using their existing cash reserves to hoarde raw and semi materials. They either resell these at an inflated profit, or monopolize the market converting to their exclusive finished goods. This makes cost of NEW BUSINESSES EXTREMELY HIGH as semi and raw material r in short supply.

Production quota was done to ensure monopolies don't prevail in our economics, and obviously, if the people enforcing the quota r corrupted, it becomes a license raj where u have govt playing inky pinky ponky over granting business licenses.
Answered by A Moin, 19 Jul '10 06:09 pm

 
  
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3.

Yes licence raj and controlled regime were the main reasons for corruption. One more reason was the swadeshi movement which gave a boom to the smuggling business. licence raj and controlled regime created artificial scarcity, which in turn led to increase in the prices of controlled commodities and their sale in the black market.
Answered by manoj thakur, 19 Jul '10 03:11 pm

 
  
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4.

Yes in 1960 there was scarcity of food grain, wheat was called under PL480, was distributed at ration shops. Rice was not available in local market. One kg per person per month was given at ration shops. It brought corruption is not sure but the GAAJAR grass seeds were sent by America with that wheat which grass is now occupying even barren land and is a problem to get rid of it.
Answered by Om Shrivastava, 19 Jul '10 03:09 pm

 
  
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5.

Yes,root cause
Answered by anil garg, 17 May '13 08:28 pm

 
  
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