Cronyism in appointments to Commonwealth statutory authorities: an empirical analysis and theoretical reappraisal

Abstract

In recent years, the practice of government cronyism - the appointment of friends and colleagues to government jobs - has been cast in a new light. Whereas once it was consistently conceptualised as form of corruption, there is now an alternative school of thought that views cronyism as a form of good governance when practiced under certain conditions and for certain purposes. Provided these pre-conditions are met, researchers from this school argue that the practice generally involves the appointment of qualified and experienced cronies who ensure the relevant body or position is used to promote the government's and the public's interests.

Despite the growing popularity of this perspective, there is little empirical evidence to support either its accuracy or claimed benefits. This is true both generally and in relation to Australia. There are also gaps in the literature concerning the actors involved in, and the drivers of, cronyism which are impeding understanding of the practice and its effects.

This thesis seeks to address these issues by developing a conceptual framework for understanding the practice of cronyism in relation to appointments to Commonwealth statutory authorities in Australia. Four key questions guided the development of the framework.

1) Who is involved in the practice? 2) Why does it occur? 3) How is it supported? 4) What are the effects?

The framework was developed using empirical data concerning appointments to, and the operation of, four statutory authorities. These data were acquired from information available in the public domain and included information on the political and social connections of appointees to the appointing government and to each other. Importantly, a wide literature across multiple academic domains was also used to develop, test and present relevant theories.

The thesis suggests that government cronyism may be more complex than currently theorised and that many of the assumptions underpinning the notion of cronyism as good governance are either overly simplistic or potentially wrong, at least in some contexts. In particular, the thesis suggests that, while government cronyism may appear superficially to be constrained within the boundaries of good governance, in reality, its extent and impacts are more troublesome. The evidence presented in the thesis suggests that government cronyism, in relation to appointments to Commonwealth statutory authorities in Australia, often involves apparent abuses of power and that the practice may be facilitating other forms of corruption. For these reasons, the thesis argues that government cronyism in this context appears to typically involve abuses of power and legal corruption rather than appointments that accord to the notion of cronyism as good governance.

The method and framework developed in the thesis provide a foundation for further research on the prevalence and drivers of cronyism in other jurisdictions. There is an immediate need for the framework to be tested in other contexts. Further research is also required on the implications of cronyism, including the extent to which it leads to other forms of corruption. Show more