17:31 May. 8, 2016
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.
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.
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.