Crony capitalism is a pejorative term describing an allegedly capitalist economy in which success in business depends on close relationships between businesspeople and government officials. It may be in the form of favoritism in the distribution of legal permits, government grants, special tax breaks,etc.
There is a thin line between lobbying and 'nexus', and probably the latter is prevalent in crony capitalism. While lobbying is acceptable in a capitalist world, excess of it can lead to crony capitalism. Lobbying is a legally and socially recognised profession in the US but not so in India. Some of the world's biggest corporate scandals are possibly the result of crony capitalism and Enrons & Satyams of the world are proof of that.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment