India is better than Russia, Malaysia, Mexico when it comes to crony capitalism
March 14, 2014 § Leave a comment
The Economist has published its crony capitalism index, which ranks India ninth worst country, an improvement from 2007 when India was ranked sixth worst country. That makes it better than other emerging markets like Russia and Malaysia. (I am ignoring the likes Hong Kong and Singapore as they are high-wealth generating countries and have a much stronger institutional structure. The Economist article has more detailed reasoning on this)
The limitations of the survey have also been well highlighted, but I believe incorporating them will have similar impact on all emerging markets, thus keeping India’s position more or less intact. What even those limitations will not highlight is the chumminess in the shadow economy and petty businessmen/politicians. In India, shadow economy is like an iceberg under the water, festering nexus of bribery, misappropriation/lack of accountability of wealth and downright criminal intent.