ISBN : 9780198799870
The popular uprisings in 2011 that overthrew Arab dictators were also a rebuke to crony capitalism, diverted against both rulers and their allied businessmen who monopolize all economic opportunities. While the Middle East has witnessed a growing nexus between business and politics in the wake of liberalization, little is discussed about the nature of business cronies, the sectors in which they operate, the mechanisms used to favour them, and the possible impact of such crony relations on the region's development. Combining inputs from leading scholars in the field, Crony Capitalism in the Middle East: Business and Politics from Liberalization to the Arab Spring presents a wealth of empirical evidence on the form and function of this aspect of the region. Crony Capitalism in the Middle East is unique in both its empirical focus and comparative scale. Analysis in individual chapters is empirically grounded and based on fine-grained data on the business activities of politically connected actors furnishing, for the first time, information on the presence, numerical strength, and activities of politically connected entrepreneurs. It also substantially enhances our understanding of the mechanisms used to privilege connected businesses, and their possible impact on undermining the growth of firms in the region. It offers a major advance on our prior knowledge of Middle Eastern political economy, and constitutes a distinct contribution to the global literature on crony capitalism and the politics of development. The book will be an essential resource for students, researchers, and policymakers alike.
Adeel Malik, Izak Atiyas, and Ishac Diwan: Introduction: Crony Capitalism in the Middle East: What Do We Know and Why Does it Matter?
1 Steffen Hertog: Is There an Arab Variety of Capitalism?
Part I: Impact of cronyism on growth
2 Ishac Diwan, Philip Keefer, and Marc Schiffbauer: Pyramid Capitalism: Evidence from Egypt
3 Izak Atiyas, Ozan Bakis, and Esra Gurakar: Anatolian Tigers and the Emergence of the Devout Bourgeoisie in the Turkish Manufacturing Industry
4 Ishac Diwan and Jamal Ibrahim Haidar: Do Political Connections Reduce Job Creation? Evidence from Lebanon
5 Mohamed Said Saadi: Moroccan Cronyism: Facts, Mechanisms and Impact
Part II: Mechanisms of privilege
6 Leila Baghdadi, Hassan Arouri, and Bob Rijkers: How Do Dictators Get Rich? State Capture in Ben Ali's Tunisia
7 Adeel Malik and Ferdinand Eibl: The Politics of Trade Protection in North Africa
8 Esra Gurakar and Tuba Bircan: Political Connections and Public Procurement in Turkey
9 Steve Monroe: Boundaries of Protectionism: Ethnic Politics and Crony Capitalism in Jordan
Part III: Financial markets and cronyism
10 Cagatay Birkan and Orkun Saka: Elections and Economic Cycles: What Can We Learn from the Recent Turkish Experience?
11 Mohamed Oubenal: Crony Interlockers and the Centrality of Banks in Morocco
12 Jad Chaaban: I've got the Power: Mapping Connections between Lebanon's Banking Sector and the Ruling Class.
13 Ali Coskun, Serhat Cevikel, and Vedat Akgiray: State and Capital Markets in the Middle East
14 Kevan Harris: Iran's Commanding Heights: Conglomerate Ownership in the Islamic Republic
15 Ishac Diwan: The Future of the Private Sector in an Age of Uncertainty