noun
Economic system where business success depends on close personal relationships with government officials, often implying favoritism and corruption.
その国では縁故資本主義が経済成長の妨げになっている。
In that country, crony capitalism is hindering economic growth.
コネ is a casual term for personal connections used to gain advantage, while 縁故資本主義 is a formal term for a systemic economic phenomenon.
Compound of 縁故 (personal connection) and 資本主義 (capitalism). The term is a direct translation of the English 'crony capitalism'.