(From The Public Discourse)
How then do we deal with cronyism? One solution is the type of economic liberalization that limits opportunities for politicians and government officials to offer the quid pro quo that is central to cronyism. In other words, you constrain the state’s capacity to offer favors by restraining its ability to intervene in the economy. That reduces the incentives for businesses to look to the state for profit through rent-seeking.
Structural change and the alteration of incentives, however, are not enough…
…All of this underscores one very important point: Unless a critical mass of people (1) cease being acquiescent with or flippant about cronyism, (2) recognize that it is fundamentally unjust, and (3) freely choose and act accordingly, it is hard to stop any political system from gravitating toward cronyism.