Impact of Crony Capitalism on the Welfare State: Decay of  Social Cohesion

Author(s)	Dr. Vaibhav Ramesh Suryawanshi
Country	India
Abstract	This paper examines the detrimental impact of crony capitalism on the welfare state. Crony capitalism, characterized by close, often corrupt, relationships between business and political elites, distorts markets, undermines fair competition, and concentrates wealth in the hands of a select few. This, in turn, significantly weakens the financial capacity and social legitimacy of the welfare state, leading to reduced social safety nets, increased inequality, and decreased public trust. This paper analyses the mechanisms through which crony capitalism erodes the foundations of the welfare state, drawing on empirical evidence and theoretical frameworks from political science, economics, and sociology. It also explores potential policy interventions to mitigate the negative consequences and strengthen the integrity of both market mechanisms and the social safety net.
Keywords	Crony Capitalism, Welfare State, Inequality, Corruption, Rent-Seeking, Social Policy, Public Trust, Economic Development.
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-06-09
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.47677
Short DOI	https://doi.org/g9pz49

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