Official
Moguls can be simply summarized in
one word i.e. Kleptocrats. Kleptocrats
stands for a government having severe systemic issues with its officials /
ruling class, who use their political leverage to amass wealth. Michael Johnson
points out that in such a setting, since the states are infected with
corruption, weak mechanisms of accountability, political instability etc., the
locus of power lies with the government officials.
For better insights on the concept of official moguls,
we study the corruption in Venezuela. According to the Corruption Perception Index 2015, published by Transparency
International, Venezuela ranks 158 out of 168 nations. Corruption here seems to
be a perennial problem i.e. from the times of Simon Bolivar. But one can
largely attribute to the fourteen years of authoritarian reign of then President
Hugo Chavez for the inefficient management of national income. As a consequence
to his rule, the Venezuelan economy witnessed an inflation of 56% in 2014.
Following are three incidences of corruption which
highlight the the ineffective governance.
Firstly, the Violations of the Constitution of 1961. Here we witness the
dissolution of the democratically elected National Congress by Chavez in 1999
after winning the election. The Constituent Assembly now was stacked with his
loyal followers. Secondly, corruption
in the state-owned petroleum company, Petroleos de Venezuela (PDVSA). Prior to
Chavez’s tenure, it had a substantial degree of fiscal and bureaucratic
independence. But in 2002, Chavez dismissed 20,000 technical and managerial
staff, which significantly damaged its productive capacity. There were even
investigations by U.S. Officials about PDVSA being involved in illicit
practices. They were increasing evidence of the oil company and its foreign
bank accounts being used for money laundry. Lastly,
the involvement of National Assembly President Diosdado Cabello in
drug-trafficking organizations. The Justice department of the US believed that
the higher ups serving in the Venezuelan government used the country as a
launchpad for cocaine shipments to the U.S. And abroad.
Despite the speculation of big politicians being
involved in corruption, no actions were taken against these specific
individuals. This further strengthens the articulation of the official moguls
wherein corruption is masked by impunity. These cases also shed light on how
corruption here is exhibited by the unilateral abuse of political power rather
than exchanging of favors occurring between public and private interests.
Reference :
http://news.nationalpost.com/news/venezuela-crippled-by-56-inflation-but-filling-a-car-with-gas-still-cheaper-than-a-bus-ticket
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