Crony capitalism: in Argentina, it’s a way of life

Here: Crony capitalism beyond Solyndra

In Argentina:
Pierpaolo Barbieri: A Lesson in Crony Capitalism
As the U.S. gears up for an important presidential election, Argentina is a sad reminder of how crony capitalism is the enemy of genuine development.

Social security funds have also been funneled into nationalized businesses like the seized YPF. But when management is trusted to cronies rather than experts, the unfortunate mix of corruption and ineptitude guarantees losses for both social security and company employees. Not surprisingly, no foreign oil company—not even Russia’s Gazprom or China’s Sinopec—has invested in YPF. Last week, the government’s handpicked CEO even threatened to quit YPF because of how little control he has over the company.

It can’t happen here, you say?

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5 Responses to “Crony capitalism: in Argentina, it’s a way of life”

  1. NotClauswitz Says:

    And Obama’s recent “You didn’t make that” speech is a undisguised call to the embrace of Cronyism. And you don’t need to look far for the gross ineptitude that the Obama Foreign Policy has embraced.

  2. Fausta Says:

    The bigger the government, the worse it gets.

  3. Gringo Says:

    Not surprisingly, no foreign oil company—not even Russia’s Gazprom or China’s Sinopec—has invested in YPF

    Only surprising if you expect companies to want to invest their money and then get expropriated.

    The old YPF was a disaster. A quote from a co-worker about a professional who worked for YPF is appropriate: “He will not advance in YPF. He is too good at what he does, and is too much of a nice guy.”

    Sums the old YPF up rather well.

    The new YPF will be more of the same.

  4. Fausta Says:

    You’re an optimist, Gringo.

  5. The Carnival of Latin America and the Caribbean | Fausta's Blog Says:

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