- #421
quadraphonics
edward said:This doesn't explain why almost every ministry in Iraq is corrupt. Many of them are far removed from oil.
"Far removed" in what sense? In their designated function, sure. But all of their budgets come directly out of oil revenue, and the appointment of ministers is highly politicized. Which, in a petrostate, means that they're appointed to those positions not so much because they're qualified for them, but as a pretense for those in power to pay them out of the oil revenue and so solidify their grip on power. This corruption propagates down through the ministries. The point is that, in a petrostate, a government doesn't need to tax its population, and so doesn't need to do things to improve their productivity (such as maintain functional, noncorrupt ministries for stuff like education, infrastructure, etc.). All that's required to stay in power is that leaders distribute enough oil revenue to buy patronage (well, and a little cheap populism from time to time). This corrupts the entire state, as there is no incentive for it to function properly; it's all simply a pretense for the distribution of oil revenue. It all works the same way in every petrostate, from Saudi Arabia to Venezuela. Indeed, the oil sector itself is often the *least* corrupt part of the state, as it DOES need to function, and typically requires investment from and collaboration with entities from Western countries who don't view corruption as acceptable.