Why India Chose Controls over Competition: A Comparative Historical Explanation of the Essential Commodities Act (1955)

Author(s): Vikas Kori and Arun Kumar

Abstract:

This research examines why India institutionalized extensive price controls through the Essential Commodities Act (1955) rather than market-based mechanisms after decolonization. Using comparative historical analysis of India, Pakistan, and Indonesia during 1947–1957, the paper argues that India's choice was driven not primarily by socialist ideology or scarcity, but by path-dependent processes: wartime bureaucratic capacity (1942–1947), political legitimacy gained from the Bengal Famine, and strong continuity of colonial administration. Pakistan adopted more limited controls due to later crises and greater bureaucratic turnover, while Indonesia initially pursued corporatist market coordination rooted in Dutch legal traditions before shifting to controls after its 1957 crisis. These findings contribute to historical institutionalism by explaining how crisis-era governance becomes entrenched institutionally and why reform efforts, such as India's failed 2020 amendment, face persistent resistance.

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Pages: 03-15     |    12 View     |    4 Download