Capitalism, Cronyism, and Democracy
By Geoffrey M. Hodgson
Cronyism and corruption are somewhat less common in democratic countries than in non-democratic ones, but statistical correlations dont settle the question of whether or not free-market economies tend to degenerate into corporate cronyism. More suggestive is the fact that cronyism and corruption existed long before the advent of capitalism, large corporations, and democracy.
|Other Independent Review articles by Geoffrey M. Hodgson|
|Fall 1998||Institutions and Economic Theory:The Contribution of the New Institutional Economics|