India was placed ninth in crony-capitalism with crony sector wealth accounting for 3.4% of the gross domestic product (GDP), according to a new study by The Economist.
By definition, crony-capitalism is an economic system in which family members and friends of government officials and business leaders are given unfair advantages in the form of jobs, loans, tax breaks, government grants and other incentives.
On the worldwide list, Germany is the cleanest, where just a sliver of the country’s billionaires derives their wealth from crony sectors.
Russia is followed by Malaysia, the Philippines and Singapore.
“Thanks to tumbling energy and commodity prices politically connected tycoons have been feeling the squeeze in recent years,” the study said.
“But as things stand, if commodity prices rebound, crony capitalists wealth is sure to rise again,” it added.
The past 20 years have been a golden age for crony capitalists tycoons active in industries where chumminess with government is part of the game.