Kleptocracy: Difference between revisions

Kleptocracy, alternatively cleptocracy or kleptarchy, (from Template:Lang-el - kleptēs, "thief"^[1] and κράτος - kratos, "power, rule",^[2] hence "rule by thieves") is a form of political and government corruption where the government exists to increase the personal wealth and political power of its officials and the ruling class at the expense of the wider population, often without pretense of honest service. This type of government corruption is often achieved by the embezzlement of state funds.

Characteristics

Kleptocracies are generally associated with corrupt forms of authoritarian governments, particularly dictatorships, oligarchies, military juntas, or some other forms of autocratic and nepotist government in which no outside oversight is possible, due to the ability of the kleptocrat(s) to personally control both the supply of public funds and the means of determining their disbursal. Kleptocratic rulers typically treat their country's treasury as though it were their own personal bank account, spending the funds on luxury goods as they see fit. Many kleptocratic rulers also secretly transfer public funds into secret personal numbered bank accounts in foreign countries in order to provide them with continued luxury if/when they are eventually removed from power and forced to leave the country.
Kleptocracy is most common in developing countries whose economies are based on the export of natural resources. Such export incomes constitute a form of economic rent and are therefore easier to siphon off without causing the income itself to decrease (for example, due to capital flight as investors pull out to escape the high taxes levied by the kleptocrats).
Kleptocracy, alternatively cleptocracy or kleptarchy, from Greek: κλέπτης (thieve) and κράτος (rule), is a term applied to a government subject to control fraud that takes advantage of governmental corruption to extend the personal wealth and political power of government officials and the ruling class (collectively, kleptocrats), via the embezzlement of state funds at the expense of the wider population, sometimes without even the pretense of honest service. The term means "rule by thieves". Not an "official" form of government (such as democracy, republic, monarchy, theocracy), the term is a pejorative for governments perceived to have a particularly severe and systemic problem with the selfish misappropriation of public funds by those in power.

Effects

The effects of a kleptocratic regime or government on a nation are typically adverse in regards to the faring of the state's economy, political affairs and civil rights. Kleptocracy in government often vitiates prospects of foreign investment and drastically weakens the domestic market and cross-border trade. As the kleptocracy normally embezzles money from its citizens by misusing funds derived from tax payments, or money laundering schemes, a kleptocratically structured political system tends to degrade nearly everyone's quality of life.

In addition, the money that kleptocrats steal is often taken from funds that were earmarked for public amenities, such as the building of hospitals, schools, roads, parks and the like - which has further adverse effects on the quality of life of the citizens living under a kleptocracy.^[3] The quasi-oligarchy that results from a kleptocratic elite also subverts democracy (or any other political format the state is ostensibly under).^[4]

Examples

In early 2004, the anti-corruption Germany-based NGO Transparency International released a list of what it believes to be the ten most self-enriching leaders in recent years.^[5]

In order of amount allegedly stolen (in USD), they were:

Former Indonesian President Suharto ($15 billion - $35 billion)
Former Philippines President Ferdinand Marcos ($5 billion - $10 billion)
Former Zairian President Mobutu Sese Seko ($5 billion)
Former Nigerian Head of State Sani Abacha ($2 billion – $5 billion)
Former Yugoslav and Serbian President Slobodan Milošević ($1 billion)
Former Haitian President Jean-Claude Duvalier ($300 million – $800 million)
Former Peruvian President Alberto Fujimori ($600 million)
Former Ukrainian Prime Minister Pavlo Lazarenko ($114 million – $200 million)
Former Nicaraguan President Arnoldo Alemán ($100 million)
Former Philippines President Joseph Estrada ($78 million – $80 million)

In addition, other sources have listed former PLO Chairman Yasser Arafat as having stolen $1 billion to $10 billion; and Pakistani President Asif Ali Zardari to have received kickbacks on contracts and misappropriating public funds, siphoning over $2 billion to his Swiss accounts.^[6]^[7]^[8]^[9]^[10]

The newly-formed state of Kosovo is also reported to be run by a kleptocratic regime, mainly formed of members from one of the country's largest political parties, Democratic Party of Kosovo. A report on the wealth of Kosovan politicians showed that despite their relatively low incomes as civil servants, a significant number had amassed personal wealth sometimes amounting to sums exceeding several million Euros.^[11] More recently, EULEX reported on a specific case where illegal payments of 1.4 million Euros had been made between the Kosovan Ministry of Internal Affairs and the Austrian State Printing Company which had previously won a tender to print Kosovan passports,^[12] and a former transport minister and current deputy-president of the ruling Democratic Party of Kosovo Fatmir Limaj was also arrested by EULEX together with six other suspects on charges of organised crime and embezzling at least two million Euros.^[13]

Other terms

Narcokleptocracy

A narcokleptocracy is a society ruled by "thieves" involved in the trade of narcotics.

The term has its origin in a report prepared by a subcommittee of the United States Senate Foreign Relations Committee, chaired by Massachusetts Senator John Kerry.^[14] The term was used specifically to describe the regime of Manuel Noriega in Panama.

The term narcostate has the same meaning.

Others

Referring to Russia, Daniel Kimmage used the terms: "kerdocracy" ("rule based on the desire for material gain") or "khrematisamenocracy" ("rule by those who transact business for their own profit").^[15]

Fareed Zakaria also described Russia as a kleptocracy on a July 23, 2012 airing of The Daily Show.

References

^ κλέπτης, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus
^ κράτος, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus
^ "Combating Kleptocracy". Retrieved 8 August 2008.
^ "National Strategy Against High-Level Corruption: Coordinating International Efforts to Combat Kleptocracy". Archived from the original on 10 July 2008. Retrieved 8 August 2008.
^ "Plundering politicians and bribing multinationals undermine economic development, says TI" (pdf). Transparency International. 2004. Retrieved October 16, 2006. {{cite web}}: Cite has empty unknown parameters: |month= and |coauthors= (help)
^ Alon, Gideon. "MI chief: terror groups trying hard to pull off mega-attack". Haaretz. Retrieved 2007-07-21. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |de= ignored (help)
^ Nashashibi, Karim (2003-09-20). "Business & Economy: IMF audit reveals Arafat diverted $900 million to account under his personal control". The Electronic Intifada. Retrieved 2007-07-21. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
^ For a general overview of the crucial importance of foreign funding in the peace process, and the PNA's use of such aid, see Rex Brynen, A Very Political Economy: Peacebuilding and Foreign Aid in the West Bank and Gaza, United States Institute of Peace Press, 2000
^ Stahl, Lesley (2003-11-09). "Arafat's Billions, One Man's Quest To Track Down Unaccounted-For Public Funds". CBS News. Retrieved 2007-07-21.
^ Backgrounder: Corruption in the PLO’s Financial Empire
^ Aliu, Majlinda (2011-06-07). "How Wealthy are Kosovo Politicians Really?". BalkanInsight. Retrieved 2012-12-02.
^ "Detention on remand against German citizen". EULEX. 2012-11-15. Retrieved 2012-12-02.
^ "EU prosecutors indict Kosovo ex-minister for corruption". EUBusiness. 2012-11-16. Retrieved 2012-12-02.
^ Drugs, Law Enforcement and Foreign Policy, Subcommittee on Terrorism, Narcotics and International Operations of the United States Senate Committee on Foreign Relations, December 1988
^ http://www.rferl.org/content/Russia_Changes_Balance_In_Caucasus/1190395.html

[1] κλέπτης, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus

[2] κράτος, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus

[3] "Combating Kleptocracy". Retrieved 8 August 2008.

[4] "National Strategy Against High-Level Corruption: Coordinating International Efforts to Combat Kleptocracy". Archived from the original on 10 July 2008. Retrieved 8 August 2008.

[5] "Plundering politicians and bribing multinationals undermine economic development, says TI" (pdf). Transparency International. 2004. Retrieved October 16, 2006. {{cite web}}: Cite has empty unknown parameters: |month= and |coauthors= (help)

[6] Alon, Gideon. "MI chief: terror groups trying hard to pull off mega-attack". Haaretz. Retrieved 2007-07-21. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |de= ignored (help)

[7] Nashashibi, Karim (2003-09-20). "Business & Economy: IMF audit reveals Arafat diverted $900 million to account under his personal control". The Electronic Intifada. Retrieved 2007-07-21. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)

[8] For a general overview of the crucial importance of foreign funding in the peace process, and the PNA's use of such aid, see Rex Brynen, A Very Political Economy: Peacebuilding and Foreign Aid in the West Bank and Gaza, United States Institute of Peace Press, 2000

[Stahl-9] Stahl, Lesley (2003-11-09). "Arafat's Billions, One Man's Quest To Track Down Unaccounted-For Public Funds". CBS News. Retrieved 2007-07-21.

[10] Backgrounder: Corruption in the PLO’s Financial Empire

[11] Aliu, Majlinda (2011-06-07). "How Wealthy are Kosovo Politicians Really?". BalkanInsight. Retrieved 2012-12-02.

[12] "Detention on remand against German citizen". EULEX. 2012-11-15. Retrieved 2012-12-02.

[13] "EU prosecutors indict Kosovo ex-minister for corruption". EUBusiness. 2012-11-16. Retrieved 2012-12-02.

[14] Drugs, Law Enforcement and Foreign Policy, Subcommittee on Terrorism, Narcotics and International Operations of the United States Senate Committee on Foreign Relations, December 1988

[15] ttp://www.rferl.org/content/Russia_Changes_Balance_In_Caucasus/1190395.html

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@@ Line 5: / Line 5: @@
 == Characteristics ==
-# Kleptocracies are generally associated with corrupt forms of [[authoritarian]] governments, particularly [[dictatorship]]s, [[oligarchies]], [[military juntas]], or some other forms of [[autocracy|autocratic]] and [[Nepotism|nepotist]] government in which no outside oversight is possible, due to the ability of the kleptocrat(s) to personally control both the supply of public funds and the means of determining their disbursal.  Kleptocratic rulers typically treat their country's [[treasury]] as though it were their own personal bank account, spending the funds on [[luxury good]]s as they see fit. Many kleptocratic rulers also secretly transfer public funds into secret personal [[numbered bank accounts]] in foreign countries in order to provide them with continued luxury if/when they are eventually removed from power and forced to leave the country.
+# Kleptocracies are generally associated with corrupt forms of [[authoritarian]] governments, particularly [[dictatorship]]s, [[oligarchies]], [[military juntas]], or some other forms of [[autocracy|autocratic]] and [[Nepotism|nepotist]] government in which no outside oversight is possible, due to the ability of the kleptocrat(s) to personally control both the supply of public funds and the means of determining their disbursal.  Kleptocratic rulers typically treat their country's [[treasury]] as though it were their own personal bank account, spending the funds on [[luxury good]]s as they see fit. Many kleptocratic rulers also secretly transfer public funds into secret personal [[numbered bank account]]s in foreign countries in order to provide them with continued luxury if/when they are eventually removed from power and forced to leave the country.
 #
-# Kleptocracy is most common in developing countries.  Such incomes constitute a form of [[economic rent]] and are therefore easier to siphon off without causing the income itself to decrease (for example, due to [[capital flight]] as investors pull out to escape the high taxes levied by the kleptocrats).
+# Kleptocracy is most common in developing countries whose economies are based on the export of [[natural resource]]s.  Such export incomes constitute a form of [[economic rent]] and are therefore easier to siphon off without causing the income itself to decrease (for example, due to [[capital flight]] as investors pull out to escape the high taxes levied by the kleptocrats).
 #
 # Kleptocracy, alternatively cleptocracy or kleptarchy, from Greek: κλέπτης (thieve) and κράτος (rule), is a term applied to a government subject to control fraud that takes advantage of governmental corruption to extend the personal wealth and political power of government officials and the ruling class (collectively, kleptocrats), via the embezzlement of state funds at the expense of the wider population, sometimes without even the pretense of honest service. The term means "rule by thieves". Not an "official" form of government (such as democracy, republic, monarchy, theocracy), the term is a pejorative for governments perceived to have a particularly severe and systemic problem with the selfish misappropriation of public funds by those in power.

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