Crony capitalism is an economic system where businesses thrive not through fair competition, but by forming close relationships with government officials. This often leads to favoritism, where certain companies receive special treatment, such as subsidies or regulatory advantages, while others are left at a disadvantage. In this system, the lines between politics and business blur, resulting in corruption and inefficiency. Lobbying and political donations are common practices that can influence government decisions, ultimately undermining the principles of a free market and harming overall economic growth.