Everything about Kleptocracy totally explained
A
kleptocracy (sometimes
cleptocracy, occasionally
kleptarchy) (
root: klepto+kratein =
rule by thieves) is a term applied to a
government that extends the personal wealth and political power of government officials and the ruling class (collectively,
kleptocrats) at the expense of the population. A
kleptocratic government often goes beyond merely awarding the prime contracts and civil service posts to friends (a common feature of corrupt governments ). They also create projects and programs at a policy level which serve the primary purpose of funneling money out of the treasury and into the pockets of the executive with little if any regard for the logic, viability or necessity of those projects.
Characteristics
Kleptocracies are often
dictatorships or some other form of
autocratic and
nepotist government, or lapsed democracies that have transformed into
oligarchies.
Kleptocratic governance means that the economy is subordinated to the interests of the ruling kleptocrats. Distributive states that derive their wealth from the extraction of
natural resources (
for example, diamonds and oil, in a few prominent cases) can be particularly prone to kleptocracy. Redistributive governments that derive their wealth through
taxation of their population have a natural limitation on how far they can extend kleptocratic policies. Their government can be destabilized through extending their grab to their own supporters or driving income producers away from the country or making them withdraw their labor or capital. A number of kleptocracies have enriched themselves via foreign aid, often spent on showy buildings and armaments.
The creation of a kleptocracy powered by
dictatorship typically results in many years of general hardship and suffering for the vast majority of citizens, as
civil society and the
rule of law disintegrate. In addition, kleptocrats routinely ignore economic and
social problems in their quest to amass ever more wealth and power.
According to one source, an old case of a kleptocratic governed state was Kievan Rus' where the alliance between Varangians and Slavic èlites set up this type of government which resisted all attacks till 1240 when the Tatars conquered Kiev.
The classic case of kleptocracy--in this sense--often given, is the regime of
Marshal Mobutu Sese Seko, who ruled the
Democratic Republic of the Congo (which he renamed
Zaire) from 1965 to 1997. It is said that use of the term kleptocracy gained popularity largely as a description of Mobutu's regime. And during his tyrannic reign, Mobutu might have stashed in Swiss banks more than 5 billion US dollars. Many economic pundits do believe that he was the first black billionaire. Another classic case is
Nigeria, especially under the rule of General
Sani Abacha who was
de facto president of Nigeria from 1993 until his death in 1998. He is reputed to have stolen some
$3-4 billion.
The term 'kleptocracy' also has been used to disparage political processes that permit corporations to influence political policy:
Ralph Nader called the
United States a kleptocracy in this sense of the word during the
2000 presidential campaign. Others however refer to this type of corporate influence over a state merely as a
plutocracy, though "
corporocracy" may be more fitting.
The protection society has against kleptocracy is largely dependent on the effectiveness of the
rule of law and
balance of power to prevent political leaders abusing their powers, the free flow of information (necessary to properly identify kleptocrats) and ability of the population to remove corrupt leaders from office. Many such protections are included in legal documents such as a
constitution or a
bill of rights and are also found in the
United Nations Universal Declaration of Human Rights, Article 17. Many countries have these protections, on paper; in many cases, the rules have not been enforced. The imposition of a government on
property rights may not be limited to taxation, licenses, and
eminent domain and may extend to outright
nationalization of privately held property if left unchecked by the
rule of law.
In 2006, the Bush Administration enunciated a policy specifically to internationalize an effort to resist kleptocracies.
Transparency International ranking
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.
In order of amount allegedly stolen (in
USD), they are
- Former Indonesian President Suharto ($15 billion – $35 billion)
- Former Philippine President Ferdinand Marcos ($5 billion – $10 billion)
- Former Zairian President Joseph Mobutu ($5 billion)
- Former Nigerian President Sani Abacha ($2 billion – $5 billion)
- Former Yugoslav 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 Philippine President Joseph Estrada ($78 million – $80 million)
Further Information
Get more info on 'Kleptocracy'.
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