Cronomy

Root cro is found in both Croatia and crony. Key theme of this blog is the economy. Now…

Crony means “a close friend or companion.” Following we have cronyism which means “favoritism shown to old friends and without regard for their qualifications.” (both from The American Heritage dictionary)

But crucial here is the much heard expression “crony capitalism” (or crony economy). It is a pejorative concept meaning several negative things all at once. It combines lack of opportunity, an inefficient, detrimental and political legal system, the lack of functioning institutions for a market economy and of course a heavy dose of corruption….. its favorite.

For my purpose here:

“…crony capitalism is frequently offered as a description or explanation of the inefficient economic systems of much of the developing world…” (Stephen Haber)

In such capitalism, economic success and development (whether private, entrepreneurial, or economic) depends on a twisted and corrupt relationship between the government and private sector. Such a relationship breeds heavy inefficiency and falling behind….in the “best” case. Emphasis is added on the inefficient because development does not depend on a free market competition and allocation of resources or much needed economic freedoms. It is not just that you need a connection in the government to succeed or get something done, the government is incapable and unwilling to change such status quo. Obviously, because it keeps the politicians needed and powerful, but also because they are not capable to change the situation. Such is the Croatian economy, to a great extent. Don’t be fooled by “pretty” numbers.

But by crony I also denote its dictionary meaning here, i.e. an intimate friend, one that Croatia knows well from the past. Croatia’s intimate friend from the past is socialism and its ways and means, one that Croatia knows well, one that is inefficient, lethargic, has poor real scientific qualifications (but “wonderful” ideological-populist and theoretical one)….and yet Croatia, (the government not necessarily all the people) regards it with favoritism as of yet. It can’t shake off the socialist rhetoric and in many cases the actual economic policies, ultimately undermining its local entrepreneurship and standard of living.

Thus, by Cronomy I imply Crony and Croatian economy.

Is the Croatian economy (capitalism) crony? Is it corrupt? …. And now you know.

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