{"id":41754,"date":"2025-08-11T09:00:00","date_gmt":"2025-08-11T07:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=41754"},"modified":"2025-11-05T13:22:50","modified_gmt":"2025-11-05T12:22:50","slug":"scourge-crony-capitalism","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/scourge-crony-capitalism\/","title":{"rendered":"The scourge of crony capitalism"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>For many years, the Western economic model has been characterised by a system of crony capitalism based on the promiscuous relationship between politics and business. An endemic evil that affects, to a greater or lesser extent, the vast majority of countries.<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><b>Xavi Vi\u00f1olas,\u00a0<\/b><b>11Onze editor<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Crony capitalism is a term used to describe <\/span><b>a capitalist system in which business success depends on mutual favours between businessmen and politicians<\/b><span style=\"font-weight: 400;\">. These relationships often lead to government policies that benefit a few companies or individuals to the detriment of the interests of the public, which end up instrumentalised by the powers that be.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The use of political connections to secure preferential treatment or unfair advantage can take the form of public contracts, subsidies, or regulations and laws that favour a select group of companies or individuals. <\/span><b>Commissions, bribes, and revolving doors<\/b><span style=\"font-weight: 400;\"> from politicians to big business are part of the lexicon that accompanies this practice of nepotism and corruption, which, unfortunately, no longer surprises anyone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this context, economic activity does not follow the principles of a free market economy designed to serve the consumer with the best products, but to <\/span><b>maintain the favour of political power through businesses or lobbies that corrupt public officials<\/b><span style=\"font-weight: 400;\">, generating inefficiencies, fostering oligopolies, slowing economic growth and eroding trust in the political class.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 2008 global financial crisis is an excellent example of how <\/span><b>collusion between financial institutions and governments can lead to risky and irresponsible practices<\/b><span style=\"font-weight: 400;\"> by monopolies that control the market, causing economic devastation that taxpayers end up paying for by rescuing banks from bankruptcy with public money.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Political disaffection<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">One of the most serious consequences of widespread government corruption and abuse of power is that <\/span><b>citizens become disengaged from the political process<\/b><span style=\"font-weight: 400;\">. The apathy and cynicism of a population, which sees public officials using their positions for their own benefit, manifests itself in low voter turnout and the destruction of the moral fibre of society.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the lack of transparency and oversight weakens trust in government institutions and makes <\/span><b>politicians unaccountable for their actions<\/b><span style=\"font-weight: 400;\">, it is difficult to convince citizens that social and economic improvements are achieved by putting into practice ethical values such as effort, hard work and honesty.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The lack of credibility associated with governments is compounded by a two-party political system, de jure or de facto, established throughout the Western world, which in many cases does not even favour two parties or political coalitions antagonistic to each other. On the contrary, it is often a matter of <\/span><b>two political actors sharing power in a cyclical fashion<\/b><span style=\"font-weight: 400;\">, but with little difference in the implementation of policies that benefit the establishment that acts outside the institutions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>No information, no accountability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A free press is <\/span><b>the cornerstone of democratic societies<\/b><span style=\"font-weight: 400;\">. It serves as a check on government power and promotes transparency and accountability. Without a free press, citizens would not have access to the information they need to make informed decisions and hold their leaders accountable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, <\/span><b>much of the media has become a mouthpiece for economic and political elites<\/b><span style=\"font-weight: 400;\">. Far from reporting on government actions or corporate malpractices, the journalistic narrative often contributes to their propaganda while whitewashing corruption, ensuring the impunity of elected officials.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This reveals an <\/span><b>unwillingness to serve the public interest<\/b><span style=\"font-weight: 400;\">, preventing citizens from being aware of government actions that may involve conflicts of interest. This is a bleak picture that is unlikely to change unless civil society organises to <\/span><b>empower citizens through information and education<\/b><span style=\"font-weight: 400;\">, enabling them to make decisions that guarantee their fundamental rights.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for <\/b><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.e11onze.app&amp;utm_source=emailing&amp;utm_campaign=CANUT+launch\"><b>Android<\/b><\/a><b> or <\/b><a href=\"https:\/\/apps.apple.com\/us\/app\/11onze\/id1566129237?utm_campaign=El+Canut\"><b>iOS<\/b><\/a><b> and join the revolution!<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you liked this news, we recommend:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/really-live-democracy\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/10\/THUMBNAIL_EL_DINER_9-800x404.png\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Economy<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Do we really live in a democracy?<\/strong><\/p>\n              <span class=\"card-time\">2 min read<\/span>\n              <p class=\"card-text small\">Representative democracy is the most widespread system&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/financial-education-centre\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/12\/THUMBNAIL_ESTAT_NACIO_XAVI_VINOLAS-800x444.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>\u201cFinancial education must be at the centre\u201d<\/strong><\/p>\n              <span class=\"card-time\">2 min read<\/span>\n              <p class=\"card-text small\">\u201cWe have to understand the financial world and not let&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/11onze-check-against-financial-misinformation\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/12\/11onze_check_THUMBNAIL.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">11Check<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Against financial misinformation<\/strong><\/p>\n              <span class=\"card-time\">3 min read<\/span>\n              <p class=\"card-text small\">One of our main functions is to provide our members with&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n              <\/div>\n              <br>\n              <br>\n              <div class=\"cards__wrapper\">\n\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":68,"featured_media":41746,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[172],"class_list":["post-41754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-economy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The scourge of crony capitalism - 11Onze<\/title>\n<meta name=\"description\" content=\"Legal and institutionalised corruption. 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