- 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.
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.
- 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.
- 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.