Skip to main content

Privatization and the Rise of the Oligarchy

Abstract

The following two chapters examine the main stages of the formation and evolution of oligarchy in most states in which oligarchy was an outcome of the transition from market coordinated economy to a so-called free-market mode; this chapter thus analyzes the way the oligarchy consolidated and commandeered the economy following the implementation of key reforms. The first stage is defined by privatization and the subsequent emergence of new business groups, and is the topic of this chapter. The second stage of the rise of the oligarchy, which traditionally took place in the early 2000s, evolved as a process of financialization and is the topic of the next chapter. This chapter describes the ensuing transition from the old business groups or corporations to pyramidal business groups, showing how this process resulted in a few individuals becoming extremely powerful and wealthy, by means of their control over the market. This was largely due to the way in which states conducted the privatization process, along with their retreat from an active role in the market and from solid and robust responses to economic changes, and not due to oligarchies’ competitive virtues. This development or mechanism of wealth accumulation was a political rather than purely economic process, with its beneficiaries tightly linked to the political circles. The assets of the states were privatized with the logic of transferring control to a stable pool of shareholders.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-14105-9_3
  • Chapter length: 33 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   69.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-14105-9
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
USD   89.99
Price excludes VAT (USA)

Notes

  1. 1.

    In Russia, for example, the chaos of transformation was largely led by six people, protégés of then President Yeltsin, who took over key industries: Mikhail Khodorkovsky—Yukos; Anatoly Chubais—electricity monopoly; Yuri Luzhkov—Khozyain of Moscow; Alexander Smolensky—banks; Vladimir Gusinsky—oil and Media ; Boris Berezovsky—media and metals.

  2. 2.

    In this scheme, the government appointed a commercial banker to run an auction that would allocate a controlling stake of a large state resource or enterprise in exchange for a loan to the federal government, which they never intended to repay. The auctioneer could thus award the stake to himself for a nominal bid (usually, slightly above a low reserve price) by excluding all other bidders, even if the price they offered was more competitive. The advocates of the scheme argued that differently from other privatizations, money was actually paid, and most of the enterprises involved in loans-for-shares did extremely well, notably Yukos and Sibneft, which led the revival of the Russian oil industry (Freeland 2000; Aslund 2004; Li-chen 2008).

  3. 3.

    Roman Abramovich is perhaps the most notorious but not the only example of a wealthy businessman rising to a position of political office.

  4. 4.

    Often the oligarchs and the bankers were part of the same group structure, like in Yukos—the oil company of Mikhail Khodorkovsky and the bank MENATEP which belonged to the same group.

  5. 5.

    Key institutional structures such as the Communist Party and the central planning system were dismantled, and the new entities that emerged, such as the presidential administration, the State Committee for the Administration of State Property, and regional governors, were pushed to expand their effective zone of control (Rutland 2009).

  6. 6.

    Western observers were initially uncomfortable with the rise of the oligarchs, whose ascendancy coincided with a wave of lawlessness, assassination contracts, and displays of wealth. However, Western economists soon started arguing that the oligarchs were playing a key role in creating the Russian market economy (Guriev and Megginson 2007).

  7. 7.

    This analysis is based on the author’s Ph.D. thesis, published in 2015.

  8. 8.

    The 1995 Brodet committee forced the banks to sell a large percentage of their real assets in industry and services; the 2004 Bachar Committee forbade banks from managing mutual funds and provident funds. The actions of these committees are detailed in subsequent chapters.

  9. 9.

    A nonrecourse debt is a loan secured by a pledge of collateral, with no personal liability. For more see Pavlov and Wachter (2004), Weidner (1978). Afterwards, there was a retreat from nonrecourse, but the collapse of some Israeli pyramidal groups in 2013 exposed that is has not entirely vanished.

  10. 10.

    It derived from a concern that smaller banks have neither sufficient size to support the higher regulatory costs arising from initiatives like Basel II, anti-money laundering rules, and accounting requirements, nor the ability to compete with larger banks.

  11. 11.

    Mikhail Khodorkovsky, the head of Russia’s largest oil company, Yukos, is the most prominent illustration of the threat posed by the oligarchs to the state leaders. Khodorkovsky was sentenced to eight years in jail for tax evasion, an accusation which is commonly believed to cover the real reason of his arrest—his political aspirations, as suspected by President Putin (Byanova and Litvinov 2003). Conversely, the lack of firm legal basis for the rapidly acquired wealth of oligarchs in some states, such as Russia, made the new business elite vulnerable to attack by the state (Rutland 2009: 3–4).

  12. 12.

    The New Order economic policy was prevalent from the mid-1960s till the end of the 1990s (Robison and Hadiz 2004).

  13. 13.

    Furthermore, parallel to market liberalization, the role of the state was conveyed in other critical channels, namely immigrant absorption (from both the USSR and Ethiopia in 1991), and peace negotiations (with the Palestinian Authority in 1993, which failed, and with Jordan, in 1994). The exclusive responsibility of the state for security and the particular nature of a Jewish state have constantly shaped its pivotal position in the political economy.

References

  • Aharoni, Y. (1991). The Israeli Economy: Dreams and Realities. London: Routledge.

    Google Scholar 

  • Aharoni, Y. (2007). New Business Elites [Hebrew]. In E. Ben-Rafael & Y. Sternberg (Eds.), New Elites in Israel (pp. 80–113). Jerusalem: Bialik Institute.

    Google Scholar 

  • Aoki, M., & Kim, H. K. (1995). Corporate Governance in Transitional Economies: Insider Control and the Role of Banks. EDI Development Study 14112.

    Google Scholar 

  • Aslund, A. (2002). Building Capitalism: The Transformation of the Former Soviet Bloc. Cambridge, UK: Cambridge University Press.

    Google Scholar 

  • Aslund, A. (2004). Russia’s Economic Transformation Under Putin. Eurasian Geography and Economics, 45(6), 397–420.

    CrossRef  Google Scholar 

  • Aslund, A. (2007). Russia’s Capitalist Revolution. Washington, DC: Petersen Institute.

    Google Scholar 

  • Barnea, E., Conforti, H., & Paroush, J. (2011). The Optimal Size Distribution of a Banking Sector: An Empirical Analysis of the Case of Israel [Hebrew]. Bank of Israel.

    Google Scholar 

  • Bebchuk, L. A., Fried, J. M., & Kaplow, L. (1996). Concentration in the Israeli Economy and Bank Investment in Commercial Companies [Hebrew]. The Economic Quarterly, 43(4), 643–672.

    Google Scholar 

  • Bejsky, M., Ziller, V., Hirsh, Z., Sarnat, Z., & Friedman, D. (1986). Report of the Commission of Inquiry into the Manipulation of the Banking Shares [Hebrew]. Jerusalem: Government Printing Office.

    Google Scholar 

  • Beltratti, A., & Stulz, R. M. (2012). The Credit Crisis Around the Globe: Why Did Some Banks Perform Better? Journal of Financial Economics, 105, 1–17.

    Google Scholar 

  • Ben-Bassat, A. (2002). The Obstacle Course to a Market Economy in Israel. In A. Ben-Bassat (Ed.), The Israeli Economy, 1985–1998. Cambridge, MA: The MIT Press.

    Google Scholar 

  • Ben-Porat, G. (2004). Business and Peace: The Rise and Fall of the New Middle East. In D. Filc & U. Ram (Eds.), The Power of Property. Jerusalem: Van-Leer.

    Google Scholar 

  • Ben-Zion, Y. T. (2006). The Political Dynamics of Corporate Legislation: Lessons from Israel. 11 Fordham J. Corp. & Fin. L. 185.

    Google Scholar 

  • Ber, H., Yafeh, Y., & Yosha, O. (2001). Conflict of Interest in Universal Banking: Bank Lending, Stock Underwriting, and Fund Management. Journal of Monetary Economics, 47(1), 189–218.

    CrossRef  Google Scholar 

  • Bernanke, B. S. (2007). Subprime Mortgage Lending and Mitigating, Testimony Before the Committee on Financial Services. U.S. House of Representatives [Online]. Available: http://www.federalreserve.gov/newsevents/testimony/bernanke20070920a.htm. Accessed 3 April 2012.

  • Blass, A. A., & Yafeh, Y. (2001). Vagabond Shoes Longing to Stray—Why Foreign Firms List in New York. Journal of Banking and Finance, 25(3), 555–572.

    Google Scholar 

  • Blass, A. A., Yafeh, Y., & Yosha, O. (1998). Corporate Governance in an Emerging Market The Case of Israel. Journal of Applied Corporate Finance, 10(4), 79–89.

    Google Scholar 

  • Boerner, K., & Hainz, C. (2004). The Political Economy of Corruption and the Role of Financial Institutions. CESifo (Working Paper No. 1293).‏

    Google Scholar 

  • Boone, P., & Rodionov, D. (2001). Rent Seeking in Russia and the CIS. Moscow: Brunswick UBS Warburg.

    Google Scholar 

  • Boycko, M., Shleifer, A., & Vishny, R. (1995). Privatizing Russia. Cambridge, MA: MIT Press.

    Google Scholar 

  • Brady, R. (1999). Kapitalizm: Russia’s Struggle to Free Its Economy. New Haven, US: Yale University Press.

    Google Scholar 

  • Bremmer, I. (2010). The End of the Free Market: Who Wins the War Between States and Corporations? European View, 9(2), 249–252.

    CrossRef  Google Scholar 

  • Buckley, N., & Ostrovsky, A. (2006, June 19). Back in Business—How Putin’s Allies Are Turning Russia into a Corporate State. Financial Times.

    Google Scholar 

  • Bufman, G., & Leiderman, L. (1995). Financial Reform in Israel: A Case for Gradualism. In R. Dornbusch (Ed.), Financial Opening: Policy Lessons for Korea. Institute of Finance: Seoul, Korea.

    Google Scholar 

  • Byanova, N., & Litvinov, A. (2003, December 24), Russian Pogrom Against the Oligarchs. Gazeta, Brought in Rutland, P. 2005. Business-State Relations in Russia. Available: http://prutland.web.wesleyan.edu/Documents/berlin1.pdf. Accessed 2 December 2017.

  • Campello, M. (2002). Internal Capital Markets in Financial Conglomerates: Evidence from Small Bank Responses. Journal of Finance, 57(6), 2773–2805.

    CrossRef  Google Scholar 

  • Cetorelli, N., & Gambera, M. (2001). Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data. The Journal of Finance, 56(2), 617–648.

    CrossRef  Google Scholar 

  • Claessens, S., Djankov, S., & Lang, L. (2000). The Separation of Ownership and Control in East Asian Corporations. Journal of Financial Economics, 58(1), 81–112.

    CrossRef  Google Scholar 

  • Cohen, Y., Haberfeld, Y., Kristal, T., & Mundlak, G. (2007). The State of Organized Labor in Israel. Journal of Labor Research, XXVIII(2), 255–274.

    CrossRef  Google Scholar 

  • Cottarelli, C., Dell’Ariccia, G., & Vladkova-Hollar, I. (2005). Early Birds, Late Risers, and Sleeping Beauties: Bank Credit Growth to the Private Sector in Central and Eastern Europe and in the Balkans. Journal of Banking & Finance, 29(1), 83–104.

    CrossRef  Google Scholar 

  • Dawisha, K. (2015). Putin’s kleptocracy: Who Owns Russia? New York: Simon and Schuster.

    Google Scholar 

  • Dewatripont, M., Rochet, J., & Tirole, J. (2010). Balancing the Banks: Global Lessons from the Financial Crisis. New Jersey: Princeton University Press.

    CrossRef  Google Scholar 

  • Dornbusch, R., & Edwards, S. (1989). The Entrenched Power of Oligarchs in Latin America. NBER (Working Paper No. 2986). Available: http://www.nber.org/papers/w2986. Accessed 13 March 2013.

  • Feinstein, Y., & Ben-Eliezer, U. (2018). Failed Peace and the Decline in Liberalism in Israel: A Spiral Model. Mediterranean Politics. https://doi.org/10.1018/13629395.2018.1434595.

  • Fershtman, C. (2007). The Limits of Privatization [Hebrew]. Jerusalem: The Van Leer Jerusalem Institute.

    Google Scholar 

  • Filc, D. (2004). Israel 2000: Neo-Liberal Post-Fordism. In D. Filc & U. Ram (Eds.), Rule of Capital: Israeli Society in the Global Age (pp. 34–56). Jerusalem: Van Leer Institute.

    Google Scholar 

  • Fogel, K. (2006). Oligarchic Family Control, Social Economic Outcomes, and the Quality of Government. Journal of International Business Studies, 37(5), 603–622.

    Google Scholar 

  • Freeland, C. (2000). Sale of the Century: Russia’s Wild Ride from Communism to Capitalism. New York, US: Crown Business.

    Google Scholar 

  • Gelfer, S., & Perotti, E. C. (2001). Red Barons or Robber Barons? Governance and Investment in Russian Financial-Industrial Groups. European Economic Review, 45(9), 1601–1617.

    CrossRef  Google Scholar 

  • Goldman, M. I. (2003). The Piratization of Russia: Russian Reform Goes Awry. New York, USA: Routledge.

    CrossRef  Google Scholar 

  • Goldman, M. I. (2004). Putin and the Oligarchs. Foreign Affairs, 83(6), 33–44.

    CrossRef  Google Scholar 

  • Gomulka, S. (1995). The IMF-Supported Programs of Poland and Russia, 1990–1994: Principles, Errors, and Results. Journal of Comparative Economics, 20(3), 316–346.

    CrossRef  Google Scholar 

  • Graham, T. (1999). From Oligarchy to Oligarchy: The Structure of Russia’s Ruling Elite. Demokratizatsiya: The Journal of Post-Soviet Democratization, 7(3), 325–340.‏

    Google Scholar 

  • Grinberg, L. (2017). Paving the Way to Neoliberalism: The Self Destruction of the Zionist Labor Movement. In M. Asa & M. Shalev (Eds.), Neoliberalism as a State Project. Oxford: Oxford University Press.

    Google Scholar 

  • Grossman, G. M., & Helpman, E. (1994). Protection for Sale. American Economic Review, 84(4), 833–850.

    Google Scholar 

  • Guriev, S., & Megginson, W. (2007). Privatization: What Have We Learned? In F. Bourguignon & B. Pleskovic (Eds.), Annual World Bank Conference on Development Economics Regional 2007: Beyond Transition. Washington, DC: World Bank.‏

    Google Scholar 

  • Hanson, P. (2007). The Russian Economic Puzzle: Going Forwards, Backwards or Sideways? International Affairs, 83(5), 869–889.

    CrossRef  Google Scholar 

  • Hellman, J. S. (1998). Winners Take All: The Politics of Partial Reform in Post-Communist Transitions. World Politics, 50(2), 203–234‏.

    Google Scholar 

  • Hodak. (2009). The 2009 Hodak Committee, Appointed by the Israeli Commissioner of Capital Markets, Insurance and Savings in May 2009, to Determine Parameters for Consideration by Institutional Investors When Investing in Non-Governmental Israeli Debt Securities—Intermediary Report for Public Comments [Hebrew].

    Google Scholar 

  • Hoff, K., & Stiglitz, J. E. (2004). After the Big Bang? Obstacles to the Emergence of the Rule of Law in Post-Communist Societies. American Economic Review, 94(3), 753–763‏.

    Google Scholar 

  • Hoffman, D. E. (2002). The Oligarchs: Wealth and Power in the New Russia. New York: Public Affairs. Accessed 3 May 2014.

    Google Scholar 

  • Israel Ministry of Finance. 1995. The Brodet Committee Report—The Committee to Examine the Various Aspects of Banks’ Holdings in Real Corporations. Available: http://ozar.mof.gov.il/hon/2001/hon_dep/memos/vaada1995.pdf. Accessed 5 November 2013.

  • Israel Ministry of Finance. 2005. The Bachar Reform: Structural Reform in the Capital Market—Inter-Ministerial Committee Report. Available: http://ozar.mof.gov.il/bachar/asp/reformreport.asp. Accessed 5 November 2014.

  • Israel State Comptroller and Ombudsman. 2001. Report 51B for 2000 [Hebrew]. Available: http://old.mevaker.gov.il/serve/contentTree.asp?bookid=156&id=2&contentid=&parentcid=undefined&sw=1920&hw=1010.

  • Ivashina, V., & Scharfstein, D. (2010). Bank Lending During the Financial Crisis of 2008. Journal of Financial Economics, 97(3), 319–338.

    CrossRef  Google Scholar 

  • Jacobson, M. (2002). Lessons from Processes of Banks’ Privatizations in the Past. Quarterly Banking Review, 37(147), 32–36.

    Google Scholar 

  • Johnson, S. (2009). The Quiet Coup. The Atlantic, 52. Available: http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/. Accessed 24 January 2018.

  • Johnston, M. (2014). Corruption, Contention and Reform: The Power of Deep Democratization. Cambridge: Cambridge University Press.

    Google Scholar 

  • Katz, Y. (1997). Privatization in Israel and Abroad [Hebrew]. Tel-Aviv: Pecker Publisher.

    Google Scholar 

  • Kaufmann, D., & Siegelbaum, P. (1997). Privatization and Corruption in Transition Economies. Journal of International Affairs, 50(2), 419–458.

    Google Scholar 

  • Khanna, T. (2000). Business Groups and Social Welfare in Emerging Markets: Existing Evidence and Unanswered Questions. European Economic Review, 44(4), 748–761.

    CrossRef  Google Scholar 

  • Khanna, T., & Yafeh, Y. (2007). Business Groups in Emerging Markets: Paragons or Parasites? Journal of Economic Literature, 45(2), 331–373.

    CrossRef  Google Scholar 

  • Kosenko, K. (2008). Evolution of Business Groups in Israel: Their Impact at the Level of the Firm and the Economy. Israeli Economic Review, 5(2), 55–93.

    Google Scholar 

  • Kosenko, K. (2013). The Nature of Organizational Hybrids: Exploring the Evolutionary Dynamics of Israeli Business Groups, 1995–2008. SSRN. Available: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2287530. Accessed 29 September 2014.

  • Kosenko, K., & Yafeh, Y. (2010). Business Groups in Israel. In A. M. Colpan, T. Hikino, & J. R. Lincoln (Eds.), Oxford Handbook of Business Groups (pp. 459–485). New York: Oxford University Press.

    Google Scholar 

  • Krampf, A. (2018). The Israeli Path to Neoliberalism: The State, Continuity and Change. Oxon and New York: Routledge.

    Google Scholar 

  • Kryshtanovskaya, O., & White, S. (2005). The Rise of the Russian Business Elite. Communist and Post-Communist Studies, 38(3), 293–307.

    CrossRef  Google Scholar 

  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and Finance. Journal of Political Economy, 106(61), 1113–1155.

    CrossRef  Google Scholar 

  • Lane, D. S. (2007). The Transformation of State Socialism: System Change, Capitalism or Something Else? Hampshire, NY: Palgrave Macmillan.

    CrossRef  Google Scholar 

  • Leach, D. K. (2005). The Iron Law of What Again? Conceptualizing Oligarchy Across Organizational Forms. Sociological Theory, 23(3), 312–337.

    CrossRef  Google Scholar 

  • Li-Chen, S. (2008). The Rise and Fall of Privatization in the Russian Oil Industry. Hampshire, UK: Palgrave Macmillan.

    Google Scholar 

  • Lizal, L., & Svejnar, J. (2002). Investment, Credit Rationing and the Soft Budget Constraint: Evidence from Czech Panel Data. Review of Statistics, 84(2), 353–370.

    Google Scholar 

  • Maman, D. (1997). The Elite Structure in Israel: A Socio-Historical Analysis. Journal of Political and Military Sociology, 25(1), 25–46.

    Google Scholar 

  • Maman, D. (2002). The Emergence of Business Groups: Israel and South Korea. Compared Organization Studies, 23(5), 737–758.

    Google Scholar 

  • Maman, D. (2004). Business Groups in the Israeli Economy: Consolidation and Empowerment Factors [Hebrew]. In D. Filc & U. Ram (Eds.), The Power of Property: Israeli Society in the Global Age [Hebrew] (pp. 116–130). Israel: HaKibbutz HaMeuchad and Van Leer Institute.

    Google Scholar 

  • Maman, D. (2006). Elites. In N. Berkovitch & U. Ram (Eds.), In/Equality [Hebrew] (pp. 38–46). Israel: Ben-Gurion University Press and Bialik Institute.

    Google Scholar 

  • Maman, D., & Rosenhek, Z. (2011). The Israeli Central Bank: Political Economy, Global Logics and Local Actors. Oxon and New York: Routledge.

    CrossRef  Google Scholar 

  • Mandelkern, R., & Shalev, M. (2010). Power and the Ascendance of New Economic Policy Ideas. World Politics, 62(3), 459–495.

    CrossRef  Google Scholar 

  • McKenzie, D., & Mookherjee, D. (2003). The Distributive Impact of Privatization in Latin America: Evidence from Four Countries. Economia Journal of the Latin American and Caribbean Economic Association, 3(2), 161–233.

    Google Scholar 

  • Morley, S. A. (1999). The Impact of Reforms on Equity in Latin America. Washington, DC: World Bank.

    Google Scholar 

  • Navot, D. (2012). Political Corruption in Israel [Hebrew]. Jerusalem: The Israel Democracy Institute.

    Google Scholar 

  • OECD. (2011). Corporate Governance in Israel. Available: http://www.oecd-ilibrary.org/governance/corporate-governance-in-israel-2011_9789264097698-en;jsessionid=6k5f0of3q5nlg.x-oecd-live-02. Accessed 5 May 2014.

  • Paroush, J., & Ruthenberg, D. (2003). Measuring Competition in Israel’s Banking System: Business Customers Vis-A-Vis Households [Hebrew]. Bank of Israel, Banking Review, 8, 1–15.

    Google Scholar 

  • Pavlov, A., & Wachter, S. (2004). Robbing the Bank: Non-Recourse Lending and Asset Prices. The Journal of Real Estate Finance and Economics, 28(2–3), 147–160‏.

    Google Scholar 

  • Peled, Y., & Shafir, G. (1996). The Roots of Peacemaking: The Dynamics of Citizenship in Israel, 1948–1993. International Journal of Middle East Studies, 28(3), 391–413.

    CrossRef  Google Scholar 

  • Poon, A. (2011). Land and the Ruling Class in Hong Kong. Singapore: Enrich Professional Publishing.

    Google Scholar 

  • Putin, V. (2006, May 10). Annual Address to the Federal Assembly of the Russian Federation. Available: http://archive.kremlin.ru/eng/speeches/2006/05/10/1823_type70029type82912_105566.shtml. Accessed 19 March 2014.

  • Robison, R., & Hadiz, V. R. (2004). Reorganizing Power in Indonesia: The Politics of Oligarchy in an Age of Markets. New York: RoutledgeCurzon.

    Google Scholar 

  • Robison, R., & Rosser, A. (2000). Surviving the Meltdown: Liberal Reform and Political Oligarchy in Indonesia. In R. Robison, M. Besson, K. Jayasuriya, & H. Kim (Eds.), Politics and Markets in the Wake of the Asian Crisis. New York: Routledge.

    Google Scholar 

  • Rolnik, G. (2017). Analysis ‘Fishmanism,’ the Exclusive Club That Stunts the Israeli Economy. TheMarker. https://www.haaretz.com/israel-news/business/.premium-fishmanism-the-exclusive-club-that-stunts-the-israeli-economy-1.5483421.

  • Rutland, P. (2009). The Oligarchs and Economic Development. In S. K. Wegren & D. R. Herspring (Eds.), After Putin’s Russia: Past Imperfect, Future Uncertain (pp. 159–182). Lanham, MD: Rowman & Littlefield Publishers.

    Google Scholar 

  • Sakwa, R. (2010). The Dual State in Russia. Post-Soviet Affairs, 26(3), 185–206.

    CrossRef  Google Scholar 

  • Shafir, G., & Peled, Y. (2002). Being Israeli. Cambridge: Cambridge University Press.

    CrossRef  Google Scholar 

  • Shalev, M. (2004). Did Globalization and Liberalization ‘Normalize’ the Political Economy in Israel? In D. Filc & U. Ram (Eds.), The Power of Property: Israeli Society in the Global Age (pp. 84–115). Jerusalem: Van-Leer Institute.

    Google Scholar 

  • Shleifer, A. (2005). A Normal Country: Russia After Communism. Cambridge, USA: Harvard University Press.

    Google Scholar 

  • Shleifer, A., & Treisman, D. S. (2000). Without a Map: Political Tactics and Economic Reform in Russia. Cambridge, MA: The MIT Press.

    Google Scholar 

  • Shumilov, A., & Volchkova, N. (2004). Russian Business Groups: Substitutes for Missing Institutions? Center for Economic and Financial Research (CEFIR) (Working Papers w0050). Available: https://ideas.repec.org/p/cfr/cefirw/w0050.html. Accessed 3 September 2017.

  • Silva, E. (1996). The State and Capital in Chile: Business Elites, Technocrats, and Market Economics. Boulder, CO, USA: Westview Press.

    Google Scholar 

  • Silva, E. (1998). Organized Business, Neoliberal Economic Restructuring, and Redemocratization in Chile. In F. Durand & E. Silva (Eds.), Organized Business, Economic Change and Democracy in Latin America (pp. 217–243). Florida: North-South Center Press.

    Google Scholar 

  • Slinko, I., Yakovlev, E., & Zhuravskaya, E. (2005). Laws for Sale: Evidence from Russia. American Law and Economics Review, 7(1), 284–318.

    Google Scholar 

  • Sokolinski, S. (2012). Business Groups in Israel: Development, Diversification, and External Finance. Milken Institute. Available: http://www.milkeninstitute.org/publications/view/533. Accessed 2 December 2014.

  • Solnick, S. L. (1998). Stealing the State: Control and Collapse in Soviet Institutions. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Sonin, K. (2010). Provincial Protectionism. Journal of Comparative Economics, 38(2), 111–122.

    CrossRef  Google Scholar 

  • Swirski, S. (2004). Israel in the Global Sphere. In D. Filc & U. Ram (Eds.), The Power of Property (pp. 57–83). Jerusalem: Van-Leer.

    Google Scholar 

  • Taylor, J. B. (2009). The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong. NBER (Working Paper 14631).

    Google Scholar 

  • The State Comptroller of Israel. 2012. The 2012 Committee to Examine Crony Capitalism, Appointed by the State Comptroller of Israel in 2010 [Hebrew]. Available: http://progdemocracy.files.wordpress.com/2012/07/d793d795d797-d7a1d795d7a4d799-d795d79ed795d793d7a4d7a1-d7a9d79c-d794d795d795d7a2d793d794-d799d795d7a0d799-2012.pdf. Accessed 14 June 2014.

  • Thompson, D. F. (1995). Ethics in Congress: From Individual to Institutional Corruption. Washington: Brookings Institution Press.‏

    Google Scholar 

  • Weidner, D. J. (1978). Realty Shelters: Nonrecourse Financing, Tax Reform and Profit Purpose. SouthWestern Law Journal, 32, 711–751.

    Google Scholar 

  • Williamson, O. E. (2000). The New Institutional Economics: Taking Stock, Looking Ahead. Journal Of Economic Literature, 38(3), 595–613.

    CrossRef  Google Scholar 

  • Winters, J. A. (2011). Oligarchy. Cambridge, UK: Cambridge University Press.

    CrossRef  Google Scholar 

  • Woods, N. (2006). The Globalizers: The IMF, the World Bank, and Their Borrowers. New York: Cornell University Press.

    Google Scholar 

  • Yafeh, Y., & Yosha, O. (1996). Anatomy of Financial Markets Reform from an Industrial Organization Perspective, Israel 1985–1995 [Hebrew]. The Economic Quarterly, 43(4), 593–619.

    Google Scholar 

  • Yafeh, Y., & Yosha, O. (1998). Financial Markets Reform, Patterns of Corporate Finance, and the Continued Dominance of Large Banks: Israel 1985–1995. Economic Systems, 22(2), 175–199.

    CrossRef  Google Scholar 

  • Yavlinsky, G. (1998). 1998 Russia’s Phony Capitalism. Foreign Affairs, 77(3), 67–79.

    CrossRef  Google Scholar 

  • Zelekha, Y., & Tzur-Neiberg, A. (2007). The Banks’ Shares Crisis—From Nationalization Till the Completion of Privatization [Hebrew]. Banking Quarterly, 160, 61–94.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Shelly Gottfried .

Rights and permissions

Reprints and Permissions

Copyright information

© 2019 The Author(s)

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Gottfried, S. (2019). Privatization and the Rise of the Oligarchy. In: Contemporary Oligarchies in Developed Democracies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14105-9_3

Download citation