Crony capitalism is an extension of the generic concept of cronyism as it applies to business and firms in a nation. A politicized or riggged economic system is dubbed crony capitalist to distinguish it from a system of free markets and limited government. It is a deliberate, systematic use of public policy to rig markets in easy way to get benefit from politically connected actors. Crony capitalism breeds political entrepreneurs and stifles market entrepreneurs. By killing transparency and competition it is harmful to free enterprise opportunity and growth. By substituting special interest for public interest, it is harmful to democratic expression and leads to income inequality and the middle income trap. The aftermath slowdown in growth that occurs in developing countries reaches middle income levels.
Liberlization, Crony capitalism, Transparency, Bureaucracy, Policy, Democratic, Business, Political party, Ministers
