: Ukraine ranks fifth in The Economist's crony-capitalism index

17:31 May. 8, 2016

Ukraine ranks fifth in The Economist's crony-capitalism index

Kyiv's Sofiyska Square (UNIAN Photo)

The Economist compares crony capitalism in the world

Political connections have always greased the wheels of commerce. But for the past 20 years, from Malaysia to Mexico, crony capitalists—individuals who earn their riches thanks to their chumminess with government—have had a golden era.

Worldwide, the worth of billionaires in crony industries soared by 385% between 2004 and 2014, to USD 2 trillion, according to The Economist

Using data from a list of the world's billionaires and their worth published by Forbes, The Economist label each individual as crony or not based on the source of their wealth. It also defines industries that are the most vulnerable to crony capitalism (those industries that have a lot of interaction with the state). The Economist aggregates the billionaires by their home country and expresses the total wealth as percentage of GDP.

Read also Consumer prices rise 79% in Ukraine in two years of crisis

Germany is cleanest, where just a sliver of the country's billionaires derives their wealth from crony sectors. Russia fares worst in our index: wealth from the country's crony sectors amounts to 18% of its GDP. Thanks to tumbling energy and commodity prices politically connected tycoons have been feeling the squeeze in recent years, the reports says. 

Ukraine rankes fifth in The Economist's crony-capitalism index, with crony sector wealth amounting to 6.7% of the country's GDP. 

608xX

 

In late 2015, Ukraine topped the world inflation ranking, among  Yemen (30%), Syria (33.6%) and South Sudan (41.1%). Russia ranked 216 place with a measure of inflation at the level of 15.4%, Belarus - 214 (15%). This is stated in a study published on the CIA website. 

 

 

comments powered by Disqus

RELATED NEWS

Business15:08 Dec. 9, 2016
EU mediates Russia-Ukraine gas talks as standoff continues
Business16:12 Dec. 8, 2016
Gazprom applied for Turkish Stream pipeline building
Business11:48 Dec. 8, 2016
Flagship Ukraine privatization flops as plant attracts no bids - Reuters
Business11:44 Dec. 6, 2016
EU spells out its stance on wood export ban
Business19:08 Nov. 29, 2016
Three reasons to invest in Poland to reach the EU market
Ukraine Today WEEKLY DIGEST
Subscribe to receive regular email updates about Ukraine and Eastern Europe
vk154998