Crony Capitalism and Political Corruption are the worst forms of White Research Paper

Crony Capitalism and Political Corruption are the worst forms of White Collar Crime - Research Paper Example The arrangement of crony capitalism has increasingly been influencing the legislative and regulatory actions of governments throughout the world. On the other hand, the aspect of political corruption has been imposing serious threat on the integrity of the national democracy. The concept of political corruption can be defined as abuse of public power or right for illegitimately, usually for gaining secret and private benefits. The practice of political corruption often varies depending upon the country and its jurisdiction. Both the concept of crony capitalism and political corruption are associated with white color crime and their practice in various forms has rendered adverse impacts on socio-economic environment of a country. Thesis Statement In the present day context, the role of government and its influence on socio-economic activities have immensely augmented. It has been recognized that crony capitalism and political corruption in the modern day context present worst forms of white collar crime committed by political persons and business organizations. In relation to this, the paper intends to identify the impact of crony capitalism and political corruption on the socio-economic environment of a country and develops arguments favoring the notion that crony capitalism and political corruption are the worst forms of white collar crimes witnessed by the world today. Crony Capitalism and the Case of Solyndra Crony capitalism in general is a way of caricaturizing the relations between the two or more parties in two different spheres in a capitalist economy. The first subject related with crony capitalism may include economy or the market. The economy or the market areas may involve the operations of businessmen who own and manage business organizations engaged in a variety of activities with a prime goal of making profit. The other subject area includes the public authority or the state through which public rules, regulations, policies and laws are made and enforced (Allen 129-139). Contextually, the case of Solyndra that has been witnessed by the United States in the recent times provides evidence about how crony capitalism is being practiced in the country. California based Solyndra, a solar panel manufacturer declared bankruptcy in August 2011 after having received US$528 million as federal loan guarantees. Moreover, its bankruptcy rendered more than 1000 people jobless. It was been observed that the loan guarantee was allowed in 2009 following the pressure from the company itself and the White House. A report issued by House of Energy and Commerce committee argued that the sinking of Obama led government’s US$528 million investment was the result of involvement of Obama Administration Officials and certain key Solyndra players. It has been further argued that despite the risks associated with funding of loan to Solyndra, the federal government did not resist in approving loan guarantee to the company rather it has been invol ved in backing the company in raising the loan guarantee. The political and government involvement in such scams is one of the worst examples of Obama led Administration’