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Financial disputes, particularly in Syria, and judicial trials, the most recent in Algeria, are all examples of relationships that have brought together men of money and power in the Arab world “in a way that does not reach the public good”. A relationship that brings money to your parties and often ends in corruption scandals?
The current dispute between the Syrian regime, led by Bashar al-Assad, and his cousin, businessman Rami Makhlouf, opens the door to talk about the relationship between money and power in the Arab world.
This type of relationship between men of money and men of power is surrounded by many question marks. Although the long Arab legacy of these relationships shows that they often start with profit and end with heavy losses; However, they are frequent and renewed reports in Arab countries for so many reasons!
Systems are the source of power and wealth
In Algeria, for example, two former prime ministers, Ahmed Ouyahia and Abdelmalek Sellal, along with former ministers and governors, were tried on corruption charges that include “receiving undue benefits, squandering public money and exploiting government occupation for personal purposes. “. Notable businessman Ali Haddad and Mohiuddin Tahkoot were also tried with them.
And if Ouyahia and Sallal were considered the first prime ministers in Algerian history to issue court sentences against them: 15 years for Ouyahia and 12 years for baskets in the case known to the media as “foreign automobile assembly factories”, then Ali Haddad, the owner of the largest private construction company in Algeria, is the first public figure In relation to the late president Abdelaziz Bouteflika, a prison sentence is issued against him, in a case related to his passport.
In an interview, Khalid bin Rashid Al-Khater, a specialist in political economy, notes that “the absence of transparency, control and accountability over public funds in the Arab world leads to the transformation of the private sector into an extension of the state, both through businessmen affiliated to the schemes or networks of beneficiaries “.
As for political science professor at Cairo University, Mustafa Kamel Al-Sayed, he explains that regimes in the Arab world always play a fundamental role in the economy, both because of the large size of the public sector in the state, and because the main source of income comes from state-controlled sectors. In both cases, the entrepreneurs of the Arab world are constantly looking for a good relationship with the authorities as they are “necessary”, both to obtain production opportunities and to protect their wealth, because regimes in Arab countries “are still a source of strength and wealth “.
The private sector and the defense of its interests
Kamel El-Sayed says that establishing a relationship between men of money and power in a country causes problems, when that relationship is not part of the public good, such as providing decent job opportunities and services to citizens, for example. In turn, this relationship can lead to the abandonment of important sectors such as education and health, as happened in Egypt and Tunisia before 2011, as he said.
Egyptian Businessmen’s Association media consultant Saeed Al-Atrash says “the public good can be a criterion” for judging the relationship between business and power. “It is not a shame that the private sector stands up for its interests, which also benefit large sections of society,” he says.
And at the mention of Egypt and Tunisia, after the outbreak of two revolutions within them in 2011, the two countries witnessed trials of businessmen affiliated to the regimes of the last presidents Hosni Mubarak and Zayn al-Abidine Ben Ali.
Attempts to solve some of these problems followed, perhaps the most important in Egypt was the announcement by the grafting agency about reconciliation with the late businessman Hussein Salem. The deal was concluded with Salem in exchange for his transfer of 75% of his wealth to the state, which was estimated at over five billion Egyptian pounds.
In Tunisia, the late President Beji Caid Essebsi announced in 2015 a national reconciliation project on issues of financial corruption and assault on public funds, in order for the Tunisian parliament to ratify the law in 2017.
Returning to the case of Rami Makhlouf, the Syrian businessman is one of the main supporters of the Assad regime, which pushed America and the European Union to impose sanctions on him. According to press reports, Makhlouf fully controls certain sectors, chief among them communications and electricity, “and there are areas where no one could work without going through”, according to the description of those reports.
However, late last year, the Syrian government began issuing a series of rulings denying Makhlouf and his wife’s money on charges of “tax evasion and making illegal profits during the ongoing war since 2011” .
The case of the Syrian businessman is not the only example of accusations of businessmen monopolizing certain economic sectors in the Arab world. During the rule of Hosni Mubarak in Egypt, the businessman and then a member of the political committee of the ruling national party, Ahmed Ezz, managed to control more than fifty percent of the industry. Iron in Egypt. Ezz had always faced monopoly charges, until the revolution of January 2011 referred him to the Public Funds Prosecutor for a trial on charges of “committing monopoly practices in violation of the law.”
Mostafa Kamel El-Sayed, a professor of political science at Cairo University, viewed the case of Ahmed Ezz as an example of a businessman’s attempt to use his relationship with authority to strengthen his position and seek a monopoly position in a way that does not serve society. Al-Sayed cautions against this model because it leads to “an increase in the general sentiment of corruption among major businessmen, as it suggests the danger of such a relationship between those in power and wealth.”
Meanwhile, Saeed Al-Atrash believes independent business associations and organizations, without government intervention, are proof of the health of the country’s economic climate. He says these associations play a key role in ensuring they don’t work for a particular party. In addition, it seeks to enact laws that prevent the emergence of monopolistic practices. Al-Atrash points out that if monopoly models emerge in any country, they are often outside these regulatory entities.
Is the owner of wealth a competitor of the sovereign?
The relationship between men of power and money in the Arab world may reflect a simple agreement that benefits both sides, but in reality these relationships may include cautious competition!
Mustafa Kamel Al-Sayed points out that the state can carry out projects that the private sector implements on its behalf, but rulers in the Arab world “see the rich as their competitor. Either the businessmen cooperate with the government or the government. it imposes control on them and limits their activities, “as he said. .
The political economist, Khalid bin Rashid Al-Khater, confirms that the greater responsibility lies with the ruler than the businessman. Based on their powers. “(DW)
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