India ranks ninth in crony – capitalism index

• 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.

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• 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.