According to the business dictionary Crony Capitalism is when an economy that is nominally free-market, allows preferential regulation and other favorable government intervention based on personal relationships. In such a system, the false appearance of "pure" capitalism is publicly maintained to preserve the exclusive influence of well-connected individuals. I totally agree with the statement “all capitalism is crony capitalism”, since almost all the things that are done are based of some kind of influence of people that have more power than others or just people than know other people and both benefits if they establish a relationship, this happen more frequently between the corporations or multinational organizations and the countries government (president, vice president, among others) give a special tax credit since that MNC help with the campaign of the new president. The following video gives an example of crony capitalism in the United States:
Source: Stossel, crony capitalism. (January,2010). Retrieved March 3, 2010, From: http://www.youtube.com/watch?v=2sSg0xjzIec
What is a banana republic? Why the author is comparing India with a banana republic?
Bananas Republic are run on cronyism, describes a country whose government is primarily concerned with economics benefiting a colonial or corporate power, rather than values of democracy and social welfare. The author is comparing India with a Banana Republic because this country it is actually managed by corporations, since the last 20 years they have been consolidating in the country. The country is very rich in natural resources, so the government and new corporations are taking advantage of this, by reducing taxes and giving
a part of their profit to the people involved.
The media is a really big business it influences in different ways the corporation, it brings out the good or bad things of the company creating a good or bad image of it. The main problem with media becoming a corporation is that it can damage its vital characteristic, which is credibility since is managed or handle by influences “under the table”.
There are some behaviors that come from corporations, journalist or states that are consider unethical, in this case we could see the union or relationship between corporations and the government, how members of the government as individuals gain some benefits if they applied flexible rules to this company’s, how in some way the media acts as influencers in markets and how they said things based on a corporations opinion to damage the image of its competitors.
Source: Carly Fiorina, personal ethics. (October,2006). Retrieved March 3, 2010, From: http://www.youtube.com/watch?v=WIH8uMu1_ng
What can The Media, Corporations and the States do in order to behave ethically and in the benefit of the people and not their own interest. Give at least 5 good ideas
- A non-governmental institution can control media, corporations and states acts by punish them if they do something unethical.
-The media should act independent from corporations and governments, to conserve their credibility.
-Governments members should first give the example by letting behind unethical acts and based on these create a group inside the government that follows each movement of each company in the country. (very
-The media should act independent from corporations and governments, to conserve their credibility.
-Governments members should first give the example by letting behind unethical acts and based on these create a group inside the government that follows each movement of each company in the country. (very
difficult)
- Create laws with stronger sanctions.
- Media can promote values and ethical behavior, to people, entities and government.
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