Cronyism

For the record label, see Crony Records

Cronyism is partiality to long-standing friends, especially by appointing them to positions of authority, without regard for their qualifications. In this regard cronyism is seen as being clearly contrary to principle of meritocracy. Cronyism often exists when the beneficiary, and the appointing party are both in social contact. Often the appointing party feels inadequate to hold their own position. For this reason, they appoint people who will not try to weaken their own position, or express views contrary to their own views. In political terms, the word "cronyism" is almost always used derogatorily. The word "crony" first appeared in 18th century London and is believed to be derived from the Greek word χρόνιος (chronios), meaning long-term.

Governments are particularly susceptible to accusations of cronyism, as they spend public money. Many democratic governments are encouraged to have transparency in their accounting and contracting processes. However, there is often no clear line to denote when an appointment constitutes "cronyism." It is not at all unusual for a person of substantial political experience to surround himself with highly qualified individuals and to develop friendships, leading to the appointment of the friends to office or the obtaining of contracts. In fact, the counsel of such friends often constitutes the reason why the officeholder was successful in obtaining the position. Therefore cronyism is usually easier to suspect than prove.

Cronyism also exists in the private sector within organizations and is often described using the term 'old boys club' or 'golden circle'. Again the boundary between cronyism and 'networking' is difficult to delineate.

Cronyism can also be described to describe relationships that exist between mutual acquaintenances, in different private sector organizations, where business transactions, or business information, and social interaction are exchanged between personnel in positions of influence in both organizations. This is termed crony capitalism, and is a breach of the principles of ethical functioning of the market economy. This form of cronyism is often a breach of market regulations in advanced societies. Commonly the media uses the Enron scandal as an extreme example of crony capitaism.

Due to the nature of crony capitalism, these practices are more frequently (though not exclusively) found in societies with least effective legal frameworks. This results in an impetus, on the legislational function of government to ensure that the legal code is capable of redressing any manipulation of the market by involved parties.

The cost of cronyism is carried by society at large. This includes the cost of reduced opportunity, reduced competition and higher costs for consumers, increased imperfections in market information, greater inefficiencies in the business investment cycle, reduced motivation levels in affected organizations in selected markets, and the distortion of efforts from productive activity. The cost of cronyism can also be carried through bad workmanship in public and private projects. Incidents of cronyism can result in a more widespread incidence of cronyism, and eventually a culture of cronyism. This can only be apprehended by an comprehensive and effective legal code, and empowered agencies who can make prosecutions in the civil justice system.

All appointments that are suspect of cronyism create controversy. The partied to the appointment may choose to suppress disqueit, or ignore it, depending on the level of indiviual liberty in the society.

Cases of cronyism

Nearly all officials with the power to appoint or award contracts have been accused of cronyism by critics at some stage during their terms. Some instances of cronyism are readily transparent. As to others, it is only in hindsight that the qualifications of the alleged "crony" must be evaluated.

Cronyism can exist anywhere, in both free and not-so-free states. In general, authoritarian and totalitarian regimes are more vulnerable to acts of cronyism simply because the officeholders are not accountable, and all office holders generally come from a similar background ( e.g. all members of the ruling party ). Some situations and examples include:

George Washington was criticized for appointing Alexander Hamilton as the first U.S. Secretary of the Treasury after Hamilton had served as Washington's aide during the American Revolutionary War. Nonetheless, the contributions Hamilton made to stabilizing the currency and securing outside capital for the fledgling democracy are well known. Referring to Hamilton's appointment as cronyism seems particularly disputable in retrospect, although it is only after looking at his accomplishments that this determination can be made.

Appointing cronies to positions can also be used to advance the agenda of the person making the appointment. And it can also spectacularly fail to do so. In medieval England, King Henry II arranged the appointment of his good friend Thomas Becket to be Archbishop of Canterbury. Henry believed that Becket would promote the king's agenda but was dismayed to see Becket adhere to his own conscience. Becket eventually excommunicated the king and the king incited three knights to murder Becket.

Examples of cronyism can be found in a number of current and former communist states. The cultural revolution in China was initially popular due to the perception that Mao Zedong was ridding the state of a number of officials who had obtained their positions by dint of friendship with communist authorities. In Russia, President Vladimir Putin has gone after a number of former communist officials who held office through their connections to party officials.[1]

Independent of the world of politics, the business and labor community have also seen charges of cronyism. President Theodore Roosevelt led an attack on the cronyism against the oil, steel, banking and other businesses that had conspired to set prices by maintaining virtual monopolies through cronyism. Through interlocking directorates it was not uncommon to see various corporate boards share members among each other.

One of the most severe cases of cronyism occurred during the Kennedy administration. Robert S. McNamara was appointed by President John F. Kennedy without any experience, a point which McNamara made clear in the 2003 documentary The Fog of War. McNamara's role in the disastrous Vietnam War was crucial and he is often considered "the architect of the Vietnam War". Kennedy originally offered him a job as Secretary of Treasury and when McNamara admitted to having no experience he gave him Secretary of Defense. Even though McNamara confessed no experience in defense, Kennedy insisted he accept the position.
Another controversial example of cronyism during the Kennedy administration was the appointment of his brother Robert F. Kennedy to the position of Attorney General.

Most recently, US President George W. Bush was accused of cronyism after the nomination of Harriet Miers to the US Supreme Court. Miers had no previous judicial experience and demonstrated little knowledge of constitutional law, and her selection was rejected by many conservatives and liberals. The appointment of Michael D. Brown to the head of FEMA could also be considered a case of cronyism as Brown had no experience pertaining to his job.

The Bush Administration has been accused of cronyism for granting No-bid contracts to Halliburton for Iraqi Oil.

External link

SuperNews: Hurricane Katrina - A political flash cartoon about the cronyism surrounding Michael D. Brown and Hurricane Katrina.

Cases of cronyism

See also

External link