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jerryking : cronyism   10

South Korea’s chaebol problem - The Globe and Mail
IAIN MARLOW - ASIA-PACIFIC CORRESPONDENT
SEOUL — The Globe and Mail
Published Friday, Apr. 24 2015

Economic observers suggest the chaebol are now thriving to the detriment of other players in the economy – hoarding profits, increasingly focusing on overseas factories, squeezing domestic suppliers, and preventing the growth of small and medium-sized enterprises (SMEs) that employ nearly 90 per cent of South Korean workers. There are also ongoing concerns about crony capitalism and the massive firms’ close relationship with the government.
chaebols  South_Korea  conglomerates  problems  family-owned_businesses  cronyism  crony_capitalism  The_One_Percent  political_elites  corporatism  supply_chain_squeeze  SMEs 
april 2015 by jerryking
Argentina’s banking talent stays away - FT.com
December 30, 2014 2:22 pm
Argentina’s banking talent stays away
By Benedict Mander and John Paul Rathbone
Wall_Street  financiers  Diaspora  émigrés  Argentinians  Argentina  cronyism 
january 2015 by jerryking
Venezuela’s declining fortunes a lesson in mismanagement - The Globe and Mail
GWYN MORGAN
Special to The Globe and Mail
Published Sunday, Feb. 23 2014

The fact that Canadian oil production, which faces much greater technical challenges than in Venezuela, has grown steadily over the same period offers some fundamental lessons.

The first is that building a business requires reinvestment. Siphoning off cash to shareholders or governments stymies growth. The second lesson is that skilled people are always in demand, either in another company or another country. Without them, the only direction is down.

The third lesson is that, sooner or later, state-owned enterprises will be doomed by cronyism and dysfunction. The idea that it is up to government to set the rules, and business to hit the ball, separates free-market capitalism from command-and-control socialism. Which leads to a key lesson for those who cling to socialist philosophies: Distributing wealth, before creating it, impoverishes everyone. Only free-enterprise countries have managed to build strong and prosperous societies.
command-and-control  free-enterprise  Gwyn_Morgan  reinvestment  socialism  Venezuela  PDVSA  oil_industry  mismanagement  SOEs  human_capital  cronyism  dysfunction  decline 
may 2014 by jerryking
Paradise lost - FT.com
December 19, 2013 5:03 pm
Paradise lost

By Robin Wiggleswort

The Caribbean is suffering from crippling government debt, endemic crime and a middle-class brain drain that have contributed to an economic meltdown of alarming proportions...

Persaud blames an “anti-growth coalition” for the Caribbean’s plight, a tight-knit nexus of politicians, business interests and unions that benefit from the status quo – one of the invisible flaws of small states where everyone knows one another. “The Caribbean is at a crossroads, it desperately needs political leadership,” he argues. “It can overcome these challenges, as other small states have, but it requires courage.”

Some fear that the erosion of the local middle classes – both the backbone of civil society as well as the most demanding voters – eases the pressure on politicians to shape up. “The depletion of our brightest graduates, our middle class and some of our most enterprising workers has drained the foundations of our society,” laments Trevor Munroe, a Jamaican academic, former union leader and founder of National Integrity Action, an anti-corruption watchdog. “Remittances are a big plus, but the big minus is the weakening of society’s internal drivers for reform.”
Caribbean  criminality  brain_drain  emigration  small_states  anti-growth  anti-development  tourism  cultural_detachment  middle_class  leadership  courage  civil_society  crony_capitalism  business_interests  cronyism  demanding_voters  debt 
december 2013 by jerryking
The Self-Destruction of the 1 Percent -
October 13, 2012 | NYTimes.com | By CHRYSTIA FREELAND.

IN the early 14th century, Venice was one of the richest cities in Europe. At the heart of its economy was the colleganza, a basic form of joint-stock company created to finance a single trade expedition. The brilliance of the colleganza was that it opened the economy to new entrants, allowing risk-taking entrepreneurs to share in the financial upside with the established businessmen who financed their merchant voyages.

Venice’s elites were the chief beneficiaries. Like all open economies, theirs was turbulent. Today, we think of social mobility as a good thing. But if you are on top, mobility also means competition. In 1315, when the Venetian city-state was at the height of its economic powers, the upper class acted to lock in its privileges, putting a formal stop to social mobility with the publication of the Libro d’Oro, or Book of Gold, an official register of the nobility. If you weren’t on it, you couldn’t join the ruling oligarchy.

The political shift, which had begun nearly two decades earlier, was so striking a change that the Venetians gave it a name: La Serrata, or the closure. It wasn’t long before the political Serrata became an economic one, too. Under the control of the oligarchs, Venice gradually cut off commercial opportunities for new entrants. Eventually, the colleganza was banned. The reigning elites were acting in their immediate self-interest, but in the longer term, La Serrata was the beginning of the end for them, and for Venetian prosperity more generally. By 1500, Venice’s population was smaller than it had been in 1330. In the 17th and 18th centuries, as the rest of Europe grew, the city continued to shrink....several recent studies have shown that in America today it is harder to escape the social class of your birth than it is in Europe. The Canadian economist Miles Corak has found that as income inequality increases, social mobility falls...Businessmen like to style themselves as the defenders of the free market economy, but as Luigi Zingales, an economist at the University of Chicago Booth School of Business, argued, “Most lobbying is pro-business, in the sense that it promotes the interests of existing businesses, not pro-market in the sense of fostering truly free and open competition.”
business_interests  capitalism  Chrystia_Freeland  city-states  cronyism  crony_capitalism  depopulation  elitism  entrenched_interests  history  income_distribution  income_inequality  lobbying  locked_in  moguls  new_entrants  oligarchs  pro-business  pro-market  Renaissance  self-destructive  self-interest  social_classes  social_mobility  The_One_Percent  Venice  winner-take-all 
september 2013 by jerryking
Technological Opportunities, Job Creation, and Economic Growth | The White House
June 28, 2010 | New America Foundation | Larry Summers. Opening
up spectrum creates a foundation for new private sector investment and
economic activity – in mobile broadband and a range of other high-value
uses – that would not have been possible without the coordinating and
organizing role of govt. But there is another reason why reforming
spectrum policy is important. Mancur Olson wrote about the tendency of
stable societies to become sclerotic as entrenched interests blocked
progress. Similarly, Alexander Gerschenkron commented on the advantages
of “economic backwardness”: Countries late to industrialize bypass-with
an open canvas-many of the dead ends and outdated practices that
encumbered early industrializers. Spectrum policy reform is important
because it addresses a cutting-edge area where we would be disadvantaged
because our early lead in developing and deploying technologies of
yesterday leave us ill-equipped for tomorrow's technological challenges.
Larry_Summers  wireless  wireless_networks  wireless_spectrum  Mancur_Olson  cronyism  job_creation  sclerotic  state-as-facilitator  leapfrogging  entrenched_interests 
july 2010 by jerryking

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