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Economics

State Capture by Oligarchic Networks in Transitional Economies

Quick fact

In 1990s Russia, the 'loans-for-shares' scheme allowed a small group of oligarchs to gain control of major state-owned oil and metal companies for a fraction of their value, effectively capturing the state's economic levers.

Why this is interesting

When a country's government writes laws that benefit a handful of billionaires, democracy is not failing—it may have been captured. How do private networks take control of the state without a coup?