Cronyism is when political officials and businessmen show preference to friends for positions of power, regardless of skill level. Nepotism involves preference for relatives. Cronyism can weaken those in power and lead to other forms of corruption. It can also cost shareholders or taxpayers when contracts are unfairly awarded.
Cronyism is a form of bribery in which political officials and businessmen show preference over friends when appointing people to positions of power, assigning leads, and delegating duties related to their office. Friends who benefit from cronyism are usually given a privileged position regardless of their skill level, ability, or suitability for the position, meaning top picks can be ignored. A related concept, nepotism, involves preference for relatives.
The history of the word “crony” dates back to the 1600s, when Cambridge students began using it in reference to old friends, making a pun on the Greek khronios, meaning “long-lived.” Initially, the word was understood in a positive way, but by the 1800s it had acquired more sinister connotations, with a friend being more of an accomplice than a true friend. In 1900, “cronyism” in the sense of political corruption entered the English lexicon.
People engage in patronage for a variety of reasons. Some politicians simply want to be surrounded by friends and people they know because they believe their administrations can run more smoothly. Others may feel pressured to reward old friends, especially those who campaigned for a political position, or people who helped make a meteoric rise in business. People in weak positions of power can use cronyism to surround themselves with loyal supporters who won’t compromise their positions, ensuring they hold power even if they don’t deserve it.
Most people view cronyism, like other forms of bribery, as harmful. It is against the idea of meritocracy, a system where people are given opportunities and positions based on their performance and ability, rather than their connections. Cronyism often results in a situation where people in power are weak and as a result, other forms of corruption can spread.
Favoritism doesn’t just have to come in the form of rewarding friends with political or industry positions. It can also be exercised when companies and governments have to award contracts for various jobs. In these cases, cronyism can actively cost shareholders or taxpayers, as a contract can be awarded to someone who outbids. When instances of cronyism like this are discovered, it can be grounds for a lawsuit, unless evidence can be provided that the contract was fairly awarded.
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