crony capitalism

an economic system where success in business is determined by close relationships between businesspeople and government officials, rather than market competition

Crony capitalism refers to a system where businesses thrive not based on their merit, but on their close relationships with government officials and politicians.
The prevalence of crony capitalism often leads to unfair advantages for well-connected companies, hindering competition and innovation in the market.
Critics argue that crony capitalism undermines the principles of free-market economics by distorting incentives and favoring a select few at the expense of the broader population.
Transparency and accountability are essential in combating crony capitalism and ensuring a level playing field for all businesses.
The government's preferential treatment of certain industries and companies is a clear example of crony capitalism, which can erode public trust in the political and economic system.