crony capitalism

Politically connected profiteering

Crony capitalism is an economic system where business success depends on close relationships between companies and government officials rather than open competition.

Contracts, licenses, and favorable regulations flow to those with political connections: The construction industry in that country runs on crony capitalism—you can't win a bid without knowing someone in the ministry.

The term is pejorative, implying corruption.

economics

monopoly

One seller, no substitutes

cartelPrice-fixing coalition
bailoutsEmergency financial interventions
subsidiesFinancial aid from government

corporate welfare · protectionism · rent-seeking · price fixing · insider trading · sweetheart deals · state capture · trade barriers · deregulation · oligopoly

lobbying

revolving door

Circular spinning entrance

campaign financeMoney raised for elections
super PACsUnlimited-donation political groups
influencePower to affect others

political donations · legislation · interest groups · policy · astroturfing · endorsements · access · earmarks · dark money · bundling

corruption

bribery

Corrupt payment for influence

kickbacksIllegal return payments
graftIllicit political gain
collusionFraudulent secret cooperation

embezzlement · money laundering · influence peddling · quid pro quo · backroom deals · malfeasance · payola · sleaze · under-the-table · fraud

nepotism

patronage

Supporter's financial backing

favoritismPreferential treatment of some
old boys' networkInformal elite mutual-aid system
preferential treatmentAdvantages given selectively

insider · cliques · family ties · dynasty · connections · networks · in-group · protégés · inner circle · appointments

inequality

plutocracy

Rule by the rich

oligarchyRule by few
wealth gapEconomic inequality measure
elitismPreference for privileged rule

privilege · power imbalance · economic divide · stratification · exclusion · marginalization · disparity · inequity · ruling class · social mobility

Categories

capitalismfree market, free enterprise, private property, profit motive, supply and demand
Philippine historypresidents, Spanish rule, vice president, revolutionaries, Imelda
Corporate Powerlobbying, lobbyist, lobbyists, monopoly, oligarchy
economic systemsmercantilism, communism, feudalism, socialism, agrarian economy
capitalism critiquewealth inequality, income inequality, wealth gap, income gap, class divide
corruptioncorruption, graft, kickbacks, bribery, bribes

Opposites

market fairness and access

crony capitalismfree markets

Commerce without state intervention

level playing field · meritocracy · competitive markets · free enterprise · open competition

government-business relationship

crony capitalismrule of law

Supremacy of established laws

good governance · anti-corruption · accountability · democratic accountability · limited government

economic system type

crony capitalismsocialism

Communal economic control

anarcho-capitalism · libertarianism · public ownership · democratic socialism · communism

Family

capital, capitalism, capitalist, crony, capitalize, capitalization, capitalists, cronyism, capitalized

Familiarity: Top 500,000
Profile: Used worldwide · Timeless · Abstract · Negative · Rated PG