Cronyism exists when the appointer and the beneficiary are in social contact; often, the appointer is inadequate to hold his or her own job or position of authority, and for this reason the appointer appoints individuals who will not try to weaken him or her, or express views contrary to those of the appointer. Politically, "cronyism" is derogatorily used.
The word crony also appears in the 1811 edition of Grose's Vulgar Tongue with a decidedly non-collegiate definition, placing it firmly in the cant of the underworld. A less likely source is the Irish term Comh-Roghna'' , which translates to "close pals", or mutual friends.
It is not unusual for a politician to surround him- or herself 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 his or her powerful position — therefore, cronyism usually is easier to perceive than to demonstrate and prove.
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.
Moreover, 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, and is an ethical breach of the principles of the market economy; in advanced economies, crony capitalism is a breach of market regulations, e.g., the Enron fraud is an extreme example of crony capitalism.
Given crony capitalism's nature, these dishonest business practices are frequently (yet not exclusively) found in societies with ineffective legal systems. Resultantly, 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. 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.
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.
Some instances of cronyism are readily transparent. As to others, it is only in hindsight that the qualifications of the alleged "crony" must be evaluated.
Former US President George W. Bush was accused of cronyism after the nomination of Harriet Miers to the US Supreme Court. Miers had no previous judicial experience and demonstrated little knowledge of constitutional law, and her selection was rejected by many conservatives and liberals. The appointment of Michael D. Brown to the head of the Federal Emergency Management Agency (FEMA) was also be considered a case of cronyism, as Brown had no experience pertaining to his job. The administration has also been accused of cronyism for reducing Scooter Libby's sentence in the Plame Affair.
Paul Wolfowitz was mentioned in connection with cronyism after the World Bank committee charged him with violation of ethical and governance rules as bank president by showing favoritism to his companion in 2005. The report noted that Mr Wolfowitz broke bank rules and the ethical obligations in his contract, and that he tried to hide the salary and promotion package awarded to Shaha Riza, his companion and a bank employee, from top legal and ethics officials in the months after he became bank president in 2005.
Category:Narcissism Category:Corruption Category:American political terms Category:Oligarchy Category:Ethically disputed political practices Category:Nepotism
de:Nepotismus es:Nepotismo fr:Copinage it:Clientelismo nl:Nepotisme pl:Kumoterstwo pt:Fisiologismo ru:КронизмThis text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
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