The Economist develops a crony capitalism index (good attempt but falls short)

cronys in line

In fairness The Economist readily identifies its shortcomings with regard to the index. They explain that they are missing huge pieces of data, can’t exactly define what industries are “crony heavy” and which are not in a particular country, and miss the largest amount of cronies because the magazine focuses on billionaires. (The vast majority of cronies, like everyone else aren’t billionaires.)

It also defers a bit too much on the “good governance” factor. Sure, some governments are better than others but it appears that this has been weighted too heavily in our opinion. One gets the sense that the The Economist was afraid to go completely down the (anti) cronyism path because if one really examines cronyism it is tied in deeply with modern government. One then must question some institutions which are held dear by the more economically “moderate” folks who edit the magazine.

Is for instance the Military Industrial Complex in the USA chock full of cronyism? I think it can be said, and we have shown many times that it is. Yet this kind of cronyism – which is broad and mostly middle class and upper middle class appears not to be reflected in the index.

Same with “green” endeavors like Solyndra – a classic case of crony capitalism, but one which doesn’t have many billionaires in the equation.

Even so we have to give The Economist credit for the attempt, and it is a first attempt (as far as we know). Hopefully they will be able to get a better handle on crony capitalism data and perhaps even what crony capitalism actually is (again it’s mostly NOT billionaires) in the future.

Covering crony capitalism day in and day out we fully recognize the complexities of trying to quantify the phenomenon. We also respect that the magazine identified the limitations of the index right from the outset. That said, we look forward to version 2.0.

 One can read the article and see the index here.

17 comments
abcdstrategy
abcdstrategy


The Economist article 'Putin's Inferno' is pure propaganda, it says nothing of the $5 BILLION the US is spending on the massive covert US/EU destabilization of the Ukraine and the Western Alliance plan to employ the same NATO 'regime change'/ resource grab as seen in Egypt, Libya, Syria, etc. Did you notice Ukraine's gold  has been shipped out (as they say; first things first, you know), My guess is that the IMF is adding it to their vault along with Libya's, Egypt's, etc., and more complaining from the Germans. ; "where's our gold. where's our gold".
Brazil, Venezuela, are you paying attention?“If Washington reconquers Venezuela and Ecuador, Bolivia will be next. Then Brazil. Washington has its sights on Brazil, because the country is a member of the BRICS (Brazil, Russia, India, China, South Africa), and Washington intends to destroy this organization before the countries can establish a trading bloc that does not use the US
dollar.

Not long ago a US official said that as soon as we (Washington) get Russia in a bind, we will deal with the upstarts in South America.”

Venezuela Also Is Being Overthrown By The Criminal Regime In …

http://www.paulcraigroberts.org/ 2014/ 03/ 14/ venezuela-also-overthrown-criminal-regime-washington-paul-craig-rober ts/



But first, who owns the Economist:
The publication belongs to The Economist Group, half of which is owned by Pearson PLC via Financial Times. A group of independent shareholders, including many members of the staff and the Rothschild banking family of England,[6]owns the rest. A board of trustees formally appoints the editor, who cannot be removed without its permission. - Wikipedia 

abcdstrategy
abcdstrategy

A recent article exposing the Economist:
Excerpts (this particular article has to do with science but also makes my point regarding the Economist's agenda):"The power elite promotes scarcity-based memes to frighten middle classes into giving up power and wealth to specially prepared globalist facilities such as the UN, IMF, BIS, etc. Every part of Western civilization is subservient to this over-arching drive: education, religion, the military, business, finance, media and, of course, science.
Since much science is dependent on university affiliations or corporate activities and both corporations and universities are in turn supported by Western, central-banking economies, science that doesn't confirm globalist assumptions is in short supply. You will read none of this at The Economist, of course. They have as usual correctly identified a problem. But as they themselves are part of it, do not expect the magazine's brain trust to provide a serious solution."

"How many articles have we read in The Economist on global warming and various other kinds of manipulative dominant social themes, alarmist articles with little or no scientific rigor? The Economist as a main "thought magazine" is a relentless distributor of elite memes. It's positioned as a droll, witty and above all sophisticated read. If you want to be a hip mid-level executive you better read The Economist and understand what's in it.
But that hardly means what is in The Economist is accurate."
 - See more at: http://www.thedailybell.com/news-analysis/34679/No-Economist--the-Real-Problem-of-Big-Science-Is-Big-Banking/#sthash.pGGRhxK7.dpuf

As typical of the above article, in the 'Economist' given to you, there are other articles that promote the globalist agenda; global registry of fishing vessels, more sovereign resources and lands to be 'deemed' off limits and put under globalist (UN) control, all designed to destroy sovereignty and centralize global control (but who really are the controllers and what is their ultimate plan). There is even an advertisement by the United Nations University; It's actually 'The United Nations University - Institute for sustainability and Peace (UNU-ISP):US citizens (working and paying taxes) fund 22% of the entire UN world budget & our 'federal' regulatory is also back door funding the UN (with our taxes). We have been funding the UNU-ISP since 1972. How's that sustainability & peace working out? How many of their 'professors' & administrators are now comfortably retired on obscenely fat US tax funded pensions? The UN includes the 'World Tourist Agency', and it is tax funded and, by the way, "most UN employees pay no tax".
Unbelievably, there is even an article ('How to make the world $600 billion poorer') promoting TTIP and the Trans Pacific partnership (TPP). Did I say 'unbelievably' ? I should have said; and here's yet another globalist effort to destroy US sovereignty. If this passes, international corporations will have the power to MAKE LAWS that supersede our own country's laws, completely emasculating our legislative branch of government, constitution and Bill of Rights. 
I did not look further as to what other crap is in this particular issue.

abcdstrategy
abcdstrategy

Here's what the Economist, apparently, doesn't want you to know:

Caught Red-Handed: Washington Spending Billions in Attempt to Destabilize Ukraine


February 16, 2014
Paul Craig Roberts / Information Clearing House & Mike Whitney / Information Clearinghouse

Commentary: The protests in the western Ukraine are organized by the CIA, the US State Department, and by Washington. The purpose of the protests is to overturn the decision by the independent government of Ukraine not to join the EU. There are three countries that strand in the way of Washington's global hegemony -- Russia, China and Iran. Each government is targeted for overthrow and replacement by US-friendly rulers who would be installed to promote Washington's will.

http://www.informationclearinghouse.info/article37632.htm

abcdstrategy
abcdstrategy


Here's what the Economist, apparently, doesn't want you to know:

Caught Red-Handed: Washington Spending Billions in Attempt to Destabilize Ukraine


February 16, 2014
Paul Craig Roberts / Information Clearing House & Mike Whitney / Information Clearinghouse

Commentary: The protests in the western Ukraine are organized by the CIA, the US State Department, and by Washington. The purpose of the protests is to overturn the decision by the independent government of Ukraine not to join the EU. There are three countries that strand in the way of Washington's global hegemony -- Russia, China and Iran. Each government is targeted for overthrow and replacement by US-friendly rulers who would be installed to promote Washington's will.

http://www.informationclearinghouse.info/article37632.htm




Bill Kline
Bill Kline

Stupid flag flier. Boy are you gullible. Fabricating!

Richard Landry
Richard Landry

Because FDR was a leftie, who thought the government was the center of the universe. He and his policies NEVER moved the economy out of the "Great" Depression but had to get Hirohito to do that.

Richard Landry
Richard Landry

Only because they and the feds won't let companies move out. See Boeing.

Curtis Neil
Curtis Neil

The Unions have long outlived there usefulness, and are now simply a vehicle for Racketeering and Legalized extortion. Unions should refrain from all politics, it a distraction from there job, there members are best suited to weigh the issues and support those candidates and issues which are best for them, Not the Union. Samuel Gompers understood this ( He was a Pioneer Union founder, and he would not approve of how they have developed), he saw the Racketeers trying to take over the Unions, to use for there own profit and power and the Communist who saw the Unions as a source of funding and support for there evil cause. The Unions, he understood, even if he ( the Union) thought a person in a work place would be better if they belonged to his Union, that the choice had to be voluntary, each person deciding for themselves, and that decision to be respected. He would be so disappointed in how the Union Movement has evolved in this country, how every thing he warned against has happened, and all the good which could have been, sacrificed.

Bill Kline
Bill Kline

Labor unions were critical in creating the largest middle class in history! Non union biz paid to be commensurate. Come on!

JonPOgden
JonPOgden

It might be easier to provide an index of non-crony corporations. 

Alejandro Antonio Chafuen
Alejandro Antonio Chafuen

I am checking to see if they focused on cronyism in the suburbs of Londoningrad and Londonistan . . . but out of criticism and praise we should be able to build on this Nick Sorrentino

Alejandro Antonio Chafuen
Alejandro Antonio Chafuen

Unless one favors anarchy, selling to government can't be equated to "cronyism." Otherwise the index of economic freedom would be the best proxy or measurement of crony capitalism. Let the competition to improve the index begin!