Crony capitalism is partially explainable by using the principles which govern any network. As government and business leaders try to accomplish things they naturally turn to other hubs (powerful people) for support in their endeavors. In a developing country those hubs may be very few thus concentrating economic and political power in a small interlocking group. In a fully developed country, wealth may have become concentrated in a small group with the same result, reduction of the number of hubs or influential persons and institutions.
Critics question the meaningfulness of the concept by pointing out that personal factors influence business decisions in all economic systems and that the existence of these factors, per se, is insufficient as an explanation for why certain economic systems work better than others.
See also: oligarchy