09 May 2016 Current Affairs: India is ranked at ninth position in crony-capitalism with crony sector wealth accounting for 3.4 per cent of the gross domestic product (GDP), according to a new study by British magazine The Economist.
In India, the non-crony sector wealth amounts to 8.3 per cent of the GDP, as per the latest crony-capitalism index.In 2014 ranking also, India stood at the ninth place.
Using data from a list of the world's billionaires and their worth published by Forbes, each individual is labelled as crony or not based on the source of their wealth.
Germany is cleanest, where just a sliver of the country's billionaires derives their wealth from crony sectors.Russia fares worst in the index, wealth from the country's crony sectors amounts to 18 per cent of its GDP.Russia tops the list followed by Malaysia, the Philippines and Singapore.
Among the 22 economies in the index, crony wealth has fallen by $116 billion since 2014.The past 20 years have been a golden age for crony capitalists tycoons active in industries where chumminess with government is part of the game.Their combined fortunes have dropped 16 per cent since 2014, according to The Economist updated crony-capitalism index.
Worldwide, the worth of billionaires in crony industries soared by 385 per cent between 2004 and 2014 to $2 trillion.