Cronyism

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Cronyism is a specific form of in-group favoritism, the spoils system practice of partiality in awarding jobs and other advantages to friends or trusted colleagues, especially in politics and between politicians and supportive organizations.^[1] For example, cronyism occurs when appointing "cronies" to positions of authority regardless of their qualifications.^[2] This is in contrast to a meritocracy, in which appointments are made based on merit. Politically, "cronyism" is derogatorily used to imply buying and selling favors, such as votes in legislative bodies, as doing favors to organizations, or giving desirable ambassadorships to exotic places.^[3]

The word crony first appeared in 17th-century London, according to the Oxford English Dictionary; it is believed to be derived from the Greek word χρόνιος (chronios), meaning 'long term'.^[4]

A less likely but oft-quoted source is the supposed Irish term Comh-Roghna, which translates as 'close pals, mutual friends'.^{[citation needed]}

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Government officials are particularly susceptible to accusations of cronyism, as they spend taxpayers' money. Many democratic governments are encouraged to practice administrative transparency in accounting and contracting, but there often is no clear delineation of when an appointment to government office is "cronyism".^[5]

In the private sector, cronyism exists in organizations, often termed "the old boys' club" or "the golden circle"; again, the boundary between cronyism and "networking" is difficult to delineate.^[6]

It is not unusual for politicians to surround themselves with highly qualified subordinates, and to develop social, business, or political friendships leading to the appointment to office of friends, likewise in granting government contracts. In fact, the counsel of such friends is why the officeholder successfully obtained their powerful position; therefore, cronyism usually is easier to perceive than to demonstrate and prove.^{[citation needed][original research?][inconsistent]} Politicians with representatives of business, other special interests, as trade unions and professional organizations get "crony-business" done in political agreements, especially by "reasonable" and lucrative honorariums to the politician for making speeches, or by legal donations to one's election campaign or to one's political party, etc.^{[citation needed][original research?]}

Cronyism describes relationships existing among mutual acquaintances in private organizations where business, business information, and social interaction are exchanged among influential personnel. This is termed crony capitalism,^[5] and is an ethical breach of the principles of the market economy; in advanced economies, crony capitalism is a breach of market regulations.

Given crony capitalism's nature, these dishonest business practices are frequently (yet not exclusively) found in societies with ineffective legal systems. Consequently, there is an impetus upon the legislative branch of a government to ensure enforcement of the legal code capable of addressing and redressing private party manipulation of the economy by the involved businessmen and their government cronies.

The economic and social costs of cronyism are paid by society. Those costs are in the form of reduced business opportunity for the majority of the population, reduced competition in the market place, inflated consumer goods prices, decreased economic performance, inefficient business investment cycles, reduced motivation in affected organizations, and the diminution of economically productive activity.^[6] A practical cost of cronyism manifests in the poor workmanship of public and private community projects.

Cronyism is self-perpetuating; cronyism then begets a culture of cronyism. This can only be apprehended by a comprehensive, effective, and enforced legal code, with empowered government agencies which can effect prosecutions in the courts.

Some instances^{[examples needed]} of cronyism are readily transparent. With others,^{[examples needed]} it is only in hindsight that the qualifications of the alleged "crony" must be evaluated. All appointments that are suspected of being cronyism are controversial. The appointed party may choose to either suppress disquiet or ignore it, depending upon the society's level of freedom of expression and individual personal liberty.

• Begley, Thomas M.; Khatri, Naresh; Tsang, Eric W. K. (2010). "Networks and cronyism: A social exchange analysis". Asia Pacific Journal of Management. 27 (2): 281–297. doi:10.1007/s10490-009-9137-4. S2CID 143799762.
• Bryce, Robert (2004). Cronies: Oil, the Bushes, and the Rise of Texas, America's Superstate. PublicAffairs. ISBN 9781586481889. LCCN 2003070694.
• Khatri, Naresh; Tsang, Eric W. K.; Begley, Thomas M. (2006). "Cronyism: A Cross-Cultural Analysis". Journal of International Business Studies. 37 (1): 61–75. doi:10.1057/palgrave.jibs.8400171. JSTOR 3875215. S2CID 18930227.
  [Also in T. G. Andrews and R. Mead (Eds.), Cross Cultural Management, Volume 2 -The Impact of Culture 1: 126–150. Routledge, UK.]
• Khatri, Naresh; Tsang, Eric W. K.; Begley, Thomas M. (2003). "Cronyism: The Downside of Social Networking". Academy of Management Proceedings. 2003: C1–C6. doi:10.5465/ambpp.2003.13792813.
• Khatri, Naresh; Tsang, Eric W. K. (2003). "Antecedents and Consequences of Cronyism in Organizations". Journal of Business Ethics. 43 (4): 289–303. doi:10.1023/A:1023081629529. S2CID 142479179.
• Diwan, Ishac; Haidar, Jamal Ibrahim (2021). "Political Connections Reduce Job Creation: Firm-level Evidence from Lebanon". Journal of Development Studies. 57 (8): 1373–1396. doi:10.1080/00220388.2020.1849622. S2CID 229717871.
• Hudson, Sarah; Claasen, Cyrlene (2017). "Nepotism and Cronyism as a Cultural Phenomenon?". The Handbook of Business and Corruption: 95–118. doi:10.1108/978-1-78635-445-720161006. ISBN 978-1-78635-446-4.

Look up cronyism in Wiktionary, the free dictionary.

• "Favoritism, Cronyism, and Nepotism". Markkula Center for Applied Ethics, Santa Clara University.
• SuperNews: Hurricane Katrina - A political flash cartoon about the cronyism surrounding Michael D. Brown and Hurricane Katrina.