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The hallmark of a
free-economy is that it allows for perfect competition in a level-playing
market where all players have access to both information and the buyers making
purchasing or contracting decisions equally.
There are always flaws, be it fundamental or not in the assumption. In countries where there exists strong state
influence, industry players will depend heavily upon the government’s
patronage.
Even the freest
economies suffer heavily from cronyism.
Capitalism in its original meaning of the term represents a market in
which its players operate on the role of law, where all are equal before the
law. This is the complete opposite of
cronyism where one set of players is granted biased favors in preference over
another.
In a free economy, there will bound to be winners and losers. Entrepreneurs who worked hard to ensure the
success of their business and do so strategically would naturally likely amass
their wealth. One would accept such a
situation in which this set of hardworking entrepreneurs the sweat of their
brow. Nobody faults an honest player who
works his way out of poverty by engaging in private enterprise if he did so
purely based on skill, ability and merit.
It is not acceptable when such business people gain wealth not through
hard work but through the well-oiled connections they have festered.
Tricia Yeoh
Egalitarian: Crony Capitalism or plain cronyism
TheSun on
Thursday March 27 2014
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