Emergence of Managerial Capitalism in India
- June 12, 2021
- Posted by: rsispostadmin
- Categories: IJRSI, Social Science
International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue V, May 2021 | ISSN 2321–2705
Emergence of Managerial Capitalism in India
Dr. Bhavna Sood
Abstract
The present paper aims at analyzing whether and to what extent Alfred Chandler’s managerial capitalism – as he defined it, appeared and controlled the industrial development of India. An attempt has been made to trace the development of Indian industries during the British rule, the problems faced by the early entrepreneurs and finally the managerial system adopted by them for the continued expansion of their industries. This is then compared to A. Chandler’s concept of managerial capitalism and some conclusions/hypothesis formed.
Introduction
Rise of capitalism marked the end of unhealthy restrictions and controls over trade and beginning with Adam Smith, the classical and neo-classical economists strongly defended the principle of Laissez faire. They felt that the invisible hand of the market mechanism, if left to itself, was sure to establish fair competition among the sellers. Through this it was believed that a just and equitable system of production and distribution would be assured under which everyone would get what he deserved, i.e. his marginal productivity, and there would be no exploitation in the long run. Like God, the invisible hand was controlled by none and (if its rules were strictly followed) did justice to all. Laissez Faire, or leaving all economic activity to the free play of the invisible hand (market mechanism) became the sine-quo-non of the entire capitalist socio-economic philosophy. However, even under the so called capitalist economic systems the market mechanism was never entirely free. Under the guise of preventing monopoly labour unions were banned, though employees associations existed. In other words, the rules of the game of Laissez Faire were followed by its exponents only so far as they were suitable to them.
During the latter half of the nineteenth century, as the effects of industrial revolution came to be felt, the market expanded from local to national, due no doubt to the introduction of railroad, telegraph, telephones
