crony capitalism: meaning, definition, pronunciation and examples
C1Formal, Academic, Journalistic
Quick answer
What does “crony capitalism” mean?
An economic system where business success depends on close, often corrupt, relationships between business people and government officials.
Audio
Pronunciation
Definition
Meaning and Definition
An economic system where business success depends on close, often corrupt, relationships between business people and government officials.
A form of capitalism characterized by preferential treatment, mutual back-scratching, and the exchange of favors (like contracts, licenses, and tax breaks) between the state and a select group of private individuals or companies, undermining fair competition and free markets.
Dialectal Variation
British vs American Usage
Differences
The term is used identically in both varieties. The word 'crony' is slightly more informal in both.
Connotations
Equally negative in both contexts, associated with critiques of political-economic systems.
Frequency
Slightly more frequent in American political and economic discourse, but common in UK discussions of post-Soviet economies, Asian financial crises, and domestic lobbying.
Grammar
How to Use “crony capitalism” in a Sentence
[Country/Economy] is plagued by crony capitalism.The system degenerated into crony capitalism.They benefited from crony capitalism.Vocabulary
Collocations
Examples
Examples of “crony capitalism” in a Sentence
verb
British English
- The industry has been crony-capitalised by decades of ministerial interference.
American English
- The regime crony-capitalized the oil sector, awarding all contracts to the president's allies.
Usage
Meaning in Context
Business
Used critically to describe unfair competitive environments where insider connections, not quality, determine success.
Academic
A key term in political economy, institutional economics, and development studies to analyze corrupted market systems.
Everyday
Used in political discussions and news commentary to criticize government-business relationships.
Technical
Precise term for a specific dysfunctional economic system where rent-seeking is institutionalized.
Vocabulary
Synonyms of “crony capitalism”
Strong
Neutral
Weak
Vocabulary
Antonyms of “crony capitalism”
Watch out
Common Mistakes When Using “crony capitalism”
- Spelling: 'croney capitalism' (incorrect).
- Using it to describe any successful businessperson (it's systemic, not individual).
- Confusing it with simple corruption (it's a specific, entrenched system of exchange).
FAQ
Frequently Asked Questions
It is a specific, systemic form of corruption focused on the intersection of business and state power, characterized by reciprocal favor-trading networks.
Yes, it can exist in any political system where regulations, contracts, and economic favors can be distributed based on personal connections rather than merit or open competition.
'Cronyism' is the broader practice of favoring friends, especially in appointments. 'Crony capitalism' applies this specifically to the economic sphere, distorting market mechanisms.
It is widely believed to have been popularized in the late 20th century, particularly after the 1997 Asian financial crisis, to describe economies in Indonesia, South Korea, etc., though similar concepts are much older.
An economic system where business success depends on close, often corrupt, relationships between business people and government officials.
Crony capitalism is usually formal, academic, journalistic in register.
Crony capitalism: in British English it is pronounced /ˈkrəʊ.ni ˈkæp.ɪ.təl.ɪ.zəm/, and in American English it is pronounced /ˈkroʊ.ni ˈkæp.ə.t̬əl.ɪ.zəm/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “It's not what you know, but who you know. (related concept)”
- “The old boys' network (related concept)”
Learning
Memory Aids
Mnemonic
Think of 'crony' (a close friend) + 'capitalism'. It's capitalism for cronies only, not for everyone else.
Conceptual Metaphor
THE ECONOMY IS A RIGGED GAME (where the rules are written by and for friends of the referee).
Practice
Quiz
What is the primary characteristic of crony capitalism?