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Crony Capitalism: Rent Seeking, Institutions and Ideology

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  • Paul Dragos Aligica
  • Vlad Tarko

Abstract

type="main"> This paper elaborates the notion of “crony capitalism” and advances an innovative approach to the analysis of the phenomenon in case, seen as a type of rent-seeking society. The argument leads to a pioneering attempt to elaborate an original theory of crony capitalism as a sui generis system and with that end in view it combines three complementary perspectives: microeconomics (dealing with the basic economics of rent-seeking), institutional or structural (dealing with the specific structures and configurations of institutions, policies and processes via which rent seeking gets materialized), and ideological (dealing with the ideas, rhetoric, beliefs, doctrines and other forms of legitimization and justification of the specific policies and institutions). The paper identifies significant functional differences between crony capitalism in high-income and developing countries and advances a novel interpretation of the special nature of crony capitalism by focusing on the distinctive features of its ideological component.

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  • Paul Dragos Aligica & Vlad Tarko, 2014. "Crony Capitalism: Rent Seeking, Institutions and Ideology," Kyklos, Wiley Blackwell, vol. 67(2), pages 156-176, May.
    • Handle: RePEc:bla:kyklos:v:67:y:2014:i:2:p:156-176
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    12. Sękowski, Stefan, 2021. "The pros and cons of rent-seeking: Political rent in various research paradigms," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 8(2), pages 1-17, July.
    13. Paul Dragos Aligica & Vlad Tarko, 2015. "Crony Capitalism," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(03), pages 27-32, October.
    14. Paul Dragos Aligica & Vlad Tarko, 2015. "Crony Capitalism," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(3), pages 27-32, October.
    15. Mohamed Ismail Sabry, 2022. "Arab-German Trade and Institutions: The Effect of Good Governance on Arab Exports to Germany," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2400-2437, October.
    16. Emilio Ocampo, 2019. "The Economic Analysis of Populism. A Selective Review of the Literature," CEMA Working Papers: Serie Documentos de Trabajo. 694, Universidad del CEMA.
    17. Marcus Matthias Keupp, 2021. "Institutions and Armed Forces," Springer Books, in: Defense Economics, chapter 0, pages 23-65, Springer.
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    19. John Garen, 2020. "The Allocation and Exchange of Property Rights as a Way to Understand Comparative Economic Systems and Managerial Economics," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 35(Winter 20), pages 43-59.
    20. Mario Menegatti, 2021. "Risk aversion in two-period rent-seeking games," Public Choice, Springer, vol. 188(1), pages 269-287, July.
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