Ancient wisdom tells us that if something looks like a duck and quacks like a duck, then it probably is indeed a duck. So, if governments in Canada exhibit similar behaviours to those in some of the world’s most backwards countries, should we conclude that Third World-style cronyism is alive and well here at home? AIMS President Brian Lee Crowley tackles this question in “Cronyism in Canada? Surely Not …”.
This Commentary examines recent research conducted by Raj M. Desai for the Brookings Institution. Crowley explains that “cronyism is a two-way street in which both favoured companies and politicians get significant rewards. According to Desai, that’s why cronyism often survives changes in government and ideology and is far less dependent on personal relationships than one might expect.”
Crowley closes by citing Desai’s key conclusion: “[B]ad investment climates don’t just happen; they are deliberately made. The subversion of institutions undermines the security of property rights for those well-connected and thus weakens overall investment and growth.”
To read the complete Commentary, click here.