Cronyism - Notable Examples

Notable Examples

Cronyism can exist anywhere, in both free and not-so-free states. In general, authoritarian and totalitarian regimes are more vulnerable to acts of cronyism simply because the officeholders are not accountable, and all office holders generally come from a similar background (e.g., all members of the ruling party ). Some situations and examples include:

• George Washington was criticized for appointing Alexander Hamilton as the first U.S. Secretary of the Treasury after Hamilton had served as Washington's aide during the American Revolutionary War. Nonetheless, the contributions Hamilton made to stabilizing the currency and securing outside capital for the fledgling republic are well known. Referring to Hamilton's appointment as cronyism seems particularly disputable in retrospect, although it is only after looking at his accomplishments that this determination can be made.

• Appointing cronies to positions can also be used to advance the agenda of the ruler responsible for the appointment, and it can also spectacularly fail to do so. In medieval England, King Henry II arranged the appointment of his good friend Thomas Becket to be Archbishop of Canterbury. Henry believed that Becket would promote the king's agenda but was dismayed to see Becket adhere to his own conscience. Becket eventually excommunicated the king and the king allegedly incited three knights to murder Becket in response.

• Examples of cronyism can be found historically in a number of communist states. The cultural revolution in China was initially popular due to the perception that Mao Zedong was ridding the state of a number of officials who had obtained their positions by dint of friendship with communist authorities. The nomenklatura system, which existed throughout the life of the Soviet state and came to prominence in the time of Leonid Brezhnev is another notable example.

• The business and labor community have also seen charges of cronyism. U.S. President Theodore Roosevelt led an attack on cronyism against the oil, steel, banking and other businesses that had conspired to set prices by maintaining virtual monopolies through cronyism. Through interlocking directorates it was not uncommon to see various corporate boards share members among each other.

• The Warren Harding administration has become a schoolbook case of cronyism. Harding appointed his old college friends as members of his cabinet, resulting in several scandals. The term Harding cabinet has become synonymous for rotten and corrupt administration.

• One of the highest level cases of cronyism occurred during the Kennedy administration in the United States. Robert S. McNamara was appointed by President John F. Kennedy without any experience, a point that McNamara made clear in the 2003 documentary The Fog of War. McNamara's role in the disastrous Vietnam War was crucial and he is often considered "the architect of the Vietnam War". Kennedy originally offered him a job as United States Secretary of Treasury and when McNamara admitted to having no experience he gave him Secretary of Defense. Even though McNamara confessed no experience in defense, Kennedy insisted he accept the position.

• Former US President George W. Bush was accused of cronyism after the nomination of Harriet Miers to the US Supreme Court. Miers had no previous judicial experience and demonstrated little knowledge of constitutional law, and her selection was rejected by many conservatives and liberals. The appointment of Michael D. Brown to the head of the Federal Emergency Management Agency (FEMA) would also be considered a case of cronyism, as Brown had no experience pertaining to his job. The administration has also been accused of cronyism for reducing Scooter Libby's sentence in the Plame Affair.

• Paul Wolfowitz was mentioned in connection with cronyism after the World Bank committee charged him with violation of ethical and governance rules as bank president by showing favoritism to his companion in 2005. The report noted that Mr. Wolfowitz broke bank rules and the ethical obligations in his contract, and that he tried to hide the salary and promotion package awarded to Shaha Riza, his companion and a bank employee, from top legal and ethics officials in the months after he became bank president in 2005.

• Bertie Ahern, former Irish Prime Minister, Taoiseach, was mentioned on several occasions to have taken sums of money and kickbacks from property developers during the Celtic Tiger. Allegations that he had received payments from developer Owen O'Callaghan were brought up in the Mahon Tribunal, the largest, longest and most expensive tribunal in the history of the Irish State. The tribunal began an investigation of the finances of former Taoiseach Bertie Ahern. Ahern denied that any such payments had taken place. Details of specific transactions under investigation were leaked to the press and questions were asked in the Dáil. The tribunal later revealed that an unprecedented level of corruption and bribery occurred under Ahern's rule, with at least 15 of his political colleagues involved. most of the illegal transactions were "brown envelope exchanges" from property developers. Ahern was also quick to silence media attention on the collapse of the property boom in Ireland to protect his developer friends and interests, such as his infamous panning of David McWilliams. Ahern was also criticised by the Moriarty Tribunal for signing blank cheques for former Irish Taoiseach Charles Haughey, without asking what those cheques were for, while he was still in office. Fearing a rebuke from his schemes, On 2 April Ahern announced his intention to resign from the position of Taoiseach, effective 6 May 2008.