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Crony Capitalism in the Middle East

The popular uprisings in 2011 that overthrew Arab dictators were also a rebuke to crony capitalism, targeted against both rulers and their allied businessmen who had monopolized profitable economic opportunities. While the Middle East has witnessed a growing nexus between business and politics in the wake of economic liberalization, little is known about the nature of business cronies, the sectors in which they operate, the mechanisms used to favor them, and the possible impact of such crony relations on the region’s development. Combining inputs from leading scholars in the field, this volume presents a wealth of empirical evidence on the form and function of crony capitalism in the Middle East. The volume is unique in both its empirical focus and comparative scale. Analysis in individual chapters is empirically grounded, 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. This volume also substantially enhances our understanding of the mechanisms used to privilege connected businesses, and their possible impact on undermining growth and job creation of firms in the Middle East. It offers a major advance on our prior knowledge of Middle Eastern political economy, and constitutes a distinct contribution to the global literature on crony capitalism and the politics of development. The book will be an essential resource for students, researchers, and policymakers alike.