CORRUPTION Syndromes of Corruption

6 Oligarchs and Clans: we are
family – and you’re not
Introduction: high stakes, insecurity,
and personal power
Oleg Deripaska, one of Russia’s most aggressive biznis oligarchs, had his
eye on an industrial plant in the nation’s Far East not long ago. He got
what he wanted, not through a buyout but by bringing a low-profile legal
proceeding before a friendly judge in a court thousands of miles to the
west. The plant’s rightful owners, knowing nothing of the case, defaulted
on the judgment; equally friendly local police then helped Deripaska seize
the plant (Tavernise, 2002a, 2002b; Agence France-Presse, 2003). In the
Philippines several generations of the Lopez family – landowners, sugar
producers, and political figures in the West Visayas region – saw their
wealth and power rise and fall depending on who held the nation’s
presidency. Under Ferdinand Marcos their interests suffered – often,
from ‘‘reforms’’ targeted at those Marcos personally opposed. After the
Aquino ‘‘People Power’’ revolution, however, the Lopez family reinvented
itself as a media conglomerate whose political connections were
as essential as its satellite network (McCoy, 1993). In Mexico drug lords
and their armed gangs dominate some areas, engaging in legal as well as
illicit business, money laundering, and politics. Often they operate with
the protection of local police.
In cases like these it is hard to distinguish among organized crime,
state officials, and corrupt politicians (Leitzel, 2002: 37). A relatively
small number of individuals use wealth, political power, and often
violence to contend over major stakes, and to reward their followers, in
a setting where institutional checks and legal guarantees may mean
little. Their power is neither clearly public nor private – often, it is both –
but it is definitely personal. Political and economic opportunities
are great and gains can be difficult to protect; those brave (or foolish)
enough to investigate or publicly oppose such dealings may pay with
their lives.
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