Corruption, crony capitalism and economic growth had not linked in my mind. An oversight, to be sure. Or just dense.
The Committee for Economic Development in Washington, D.C., the Thornburg Foundation of Santa Fe and Michael Rocca, University of New Mexico political science professor, have combined to argue the three are quite connected.
The factors are “a key reason for New Mexico’s lackluster economic growth,” Rocca says.
The report is “Crony Capitalism, Corruption and the Economy of the State of New Mexico.” Rocca’s team included one undergraduate honors student and two Ph.D. candidates. The project came from discussions at the Thornburg Foundation. The Committee for Economic Development went to Santa Fe at Thornburg’s invitation, says Mike Petro, CED’s executive vice president. Rocca says he was contacted by CED and Thornburg.
In the introduction, Rocca and his team say, “(Crony capitalism) refers to the unhealthy relationship between some private interests (e.g. business, anti-business interests, professions, and social groups) and government. Deals are struck that reward winners on the basis of political influence rather than merit.”