Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favouritism in the distribution of legal permits, government grants, special tax breaks, or other forms of state interventionism.
The rating released by The Economist is chaired by Russia. Malaysia comes second, and “the bronze” goes to Philippines. Singapore comes fourth.Ukraine completes the top five of the list.
To complete the rating, the outlet uses the data about sources of incomes of the world’s richest people provided by Forbes magazine. According to The Economist’s experts, the most vulnerable to crony capitalism are the branches that closely interact with the governmental agencies – defense and energy sectors, banking and real estate sectors, infrastructure projects, etc. Then, the outlet sorts the billionaires by countries, and their total income is represented in percentage ratio from the country’s GDP.
In Russia, this ratio equals 18 percent of the country’s GDP, in Malaysia – 13 percent, in Philippines – 11.2 percent; in Singapore, it’s 10.6 percent of the GDP. In Ukraine, the ratio equals 6.7 percent of the country’s GDP.
According to The Economist, in 2014, Ukraine was ranked third in that rating.