Artificial Billionaires: Regimes' Crony Capitalism Stifling Middle East

The World Bank sees there is a problem with the wrong type of state involvement in the economy—Artificial Billionaires: Regimes’ Crony Capitalism Stifling Middle East.

Contributors at Informed Comment write that:

The “privileges” referred to in the report are the many old policies that continue to protect the business interests of entrenched elites. The report shows the extent to which these policies—designed to prevent or deter competitors while allowing elites to make easy money or “to earn rents”—distort the natural workings of economies in which businesses either grow and become more productive, or exit the market. In this environment, political connections are more important for success than innovative spirit.

Emphasis Mine

In the view of the Capitalists, the state is supposed to defend their class interests against the workers, not favour one faction of Capitalists over another.

Despite what is happening elsewhere as Europe blunders towards new recession, the contributors maintain that Capitalism needs only be set free in order for it to work properly:

Only by removing the type of privileges described in this report can the region move toward the level of job creation it needs. The report shows that promoting open markets and competition, and leveling the playing field, will provide an environment conducive to entrepreneurship and the emergence of dynamic firms. Reforms initiated transparently would make sure citizens are aware of what their governments are doing and can provide input into policymaking.

This proves that Capitalism has exhausted its intellectual vigour. Capitalists have become zombies shuffling mindlessly around while muttering “Reforms! Reforms!”.

Workers should realise that only a worker-lead and controlled government can overcome the malaise in investment and create an economy that benefits the workers over the Capitalists.