Crony Capitalism In The Middle East

LSE Middle East Centre Podcasts

This event launches Crony Capitalism in the Middle East: Business and Politics, from Liberalization to the Arab Spring edited by Ishac Diwan, Adeel Malik, and Izak Atiyas. 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 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. Ishac Diwan is Professor of Economics at Paris Sciences et Lettres (a consortium of Parisian universities) where he holds the chair of the Economy of the Arab World. He has held recent teaching positions at Columbia University, School for International Public Affairs, and at the Harvard Kennedy School. He directs the Political Economy program of the Economic Research Forum, where he runs two projects on the study of crony capitalism, and the analysis of opinion surveys. Diwan is a frequent consultant with governments and international organizations, working recently on policy issues in Sudan, Algeria, Lebanon, and Egypt. Adeel Malik is Globe Fellow in the Economies of Muslim Societies at the Oxford Centre for Islamic Studies and an Associate Professor at the Department of International Development, University of Oxford. Malik is an empirical economist with a strong multi-disciplinary orientation. He is trying to develop a broader research lens to study Middle Eastern political economy. Malik’s research on Middle Eastern political economy has featured in the CNN, Financial Times, the New York Times, Project Syndicate, and Foreign Affairs. Courtney Freer is a Research Fellow at the Kuwait Programme, LSE Middle East Centre. Her work focuses on the domestic politics of the Gulf states, particularly the roles played by Islamism and tribalism. Her book Rentier Islamism: The Influence of the Muslim Brotherhood in Gulf Monarchies, based on her DPhil thesis at the University of Oxford and published by Oxford University Press in 2018, examines the socio-political role played by Muslim Brotherhood groups in Kuwait, Qatar and the United Arab Emirates. She previously worked at the Brookings Doha Center and the US–Saudi Arabian Business Council. Join the conversation on Twitter using #LSEMiddleEast