The confluence of state, and capitalists have led to the deterioration of public welfare activities. Examine the measures to strengthen ethical governance.
Crony Capitalism is a term used to indicate where national governments have colluded with industrialists to mend the laws of the market economy in favor of industries, i.e., Government sells profit-earning Public Enterprise to private entities.
Example: BPCL, Container Corporation of India.
The sale of public enterprises to private players shifts the core values and objectives of organization from public welfare to private gains resulting in increased prices of goods and services (inflation). Meteoric rise of Industrialists without inventing any ground-breaking technology is a latent example of Crony Capitalism.
Effect of Crony capitalism:
Measure needed to strengthen Ethical Governance:
2. Active and Dynamic Civil Society: Public policies and governance could be strengthened by continuous engagement of civil society and independent media which could expose corruption and promote ethical governance.
3. Accountability Mechanism: Strong and effective accountable mechanism will ensure strength of organization and punish corrupt and unethical elements in a timely manner.
4. Professional Socialization Mechanism: Sound training programmes, inculcation of public-spirited values among public leaders and officials will create a strong and positive work culture promoting effectiveness and transparency in governance.
5. Service Conditions: Adequate salary, stability of residency, consistency in policies helps in attracting and retaining quality human resource.
Adhering to Gandhiji’s concept of “purity of means” and Bentham “Utilitarian Approach” will ensure transparency and maximum good for the public.