The Economic Consequences of State Capture, putting state capture in the US in global context. In struggling democracies around the world, small cliques of politicians, business elites, and politicians with business interests—what political scientists call “poligarchs” – have warped the state to serve their interests. Together, these unholy alliances change rules, fire bureaucrats, silence critics, and then eat up the country’s resources. The politicians commandeer banks, rewrite regulations, and take control of procurement contracts. Their friends in the private sector, meanwhile, provide kickbacks, donations, and favorable media coverage.
