• India is ranked at ninth position in crony­-capitalism with crony sector wealth accounting for 3.4 per cent of the gross domestic product (GDP).
  • As per the latest crony-­capitalism index, the non­crony sector wealth amounts to 8.3 per cent of the GDP.

crony-capitalsm-index

Forbes published :  List of the world’s billionaires and their worth.

  • Germany is the cleanest with least number of crony capitalists.
  • Russia fares worst in the index, wealth from the country’s crony sectors amounts to 18 per cent of its GDP.
  • Russia tops the list followed by Malaysia, the Philippines and Singapore.

Recent Study:

  • Being tumbled energy and commodity prices politically connected tycoons has been felt the squeeze in recent years.
  • Among the 22 economies in the index, crony wealth has fallen by USD 116 billion since 2014.
  • If commodity prices rebound, crony capitalists wealth is likely to rise again.

Golden age for crony capitalists:

  • The past 20 years, tycoons active in industries where chumminess with government.
  • Their combined fortunes have dropped 16 per cent since 2014.
  • The worth of billionaires in crony industries increased by 385 per cent between 2004 and 2014 to USD 2 trillion.

About Crony-Capitalism:

  • Crony-capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials.
  • It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of state interventionism.