Basically capitalism means a process of investing the capital, produce the products, creates the demand and earning of profit by the private people. Crony capitalism is the new’ term in the place of traditional capitalism. It refers to the business dealings carried out between business class and government officers in a capitalist economy.
The success in modern economy depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks or other forms. In this system, the government policies are always in favour of the business class and trying to protect their interests to get reward and other means Crony capitalism is an economic phenomenon with political consequences.
Here the government must be able to make deals in closed doors without public review’ and approval. Personal connections of particular asset holders and government actors continue so long as that particular government is in power. Hence the crony capitalism plays an important role in the modern economy.
