Truthout: The Iraq War and Crony Democracy

[marmar]

The Iraq War and Crony Democracy
By Henry Pelifian
t r u t h o u t | Guest Contributor

Wednesday 24 January 2007

Has our form of government evolved into crony democracy? What is crony democracy, and how does it relate to the Iraq War? What is crony capitalism? Let us start with crony capitalism, for it begins there.

Crony capitalism is the practice of government supporting specific companies or industries for favorable treatment in legislation, government grants, legal permits and beneficial tax laws. The concepts of open competition and free markets do not apply, because government actively intervenes to assist privileged corporations. In crony capitalism, there is a close relationship between government and corporations, and their actions towards each other are mutually financially beneficial. National laws and regulations are enacted that provide special permission for particular companies for acquisitions, mergers, real estate transactions and tax benefits. The quid pro quo for Republican and Democratic politicians are campaign donations, future jobs for themselves or relatives, and are disguised or hidden perks in exchange for favorable legislation for privileged organizations. Crony democracy occurs when crony capitalism merges with democracy, with major players becoming interchangeable with the lobbying promoting it.

President Eisenhower's warning about the military-industrial complex's undue and adverse influence on the country was prescient and prophetic. Contracts for military hardware were the hallmark of the military-industrial complex in his era. Now it has extended and grown to taking over logistic and myriad other functions of the US military and government overseas, often creating a revolving chair of government and corporate employees securing government contracts domestically and internationally by using high-level contacts while in government for private gain. It appears that the concept of public service has become a major instrument for accessing and obtaining wealth. There is little prohibition of our elected and appointed former government officials to work for private companies, using their influence to assist in securing high-value government contracts.

A prime example of crony capitalism, extensively outlined in Robert Bryce's book "Cronies" is the company Brown and Root, with its subsidiary Halliburton garnering billions of dollars worth of government contracts in Iraq. Vice President Dick Cheney is Halliburton's former chief executive officer. Cheney traded his government contacts when he was hired by Halliburton for domestic and foreign contracts with people with whom he formerly had conducted official business. There was no conflict of interest charge against Vice President Cheney when his former firm Halliburton secured billions of dollars of US government contracts in Iraq.

Mr. Bryce states in his book that Dick Cheney departed Halliburton after five years with a retirement package worth $33.7 million dollars, shortly before being sworn in as vice president of the United States. Vice President Cheney also received deferred compensation from Halliburton totaling nearly $400,000 while in office.

In "Cronies," it is clear why Halliburton hired Mr. Cheney, for he "knew how to vacuum up federal money and federal contracts." Other facts from "Cronies": During Cheney's tenure at Halliburton, he nearly doubled the amount of federal contracts to $2.3 billion. Also, Cheney assisted the parent company, Brown & Root, in receiving a fifteenfold increase in federally backed loans and insurance from the Export-Import Bank and the Overseas Private Investment Corporation. Mr. Cheney understood the importance of lobbying, for he doubled political donations while at Halliburton. ....(more)

The rest of the article is at: http://www.truthout.org/docs_2006/012407N.shtml

[Jane Austin]

1. There's a story in this month's Playboy in which Lockheed's

connections in the White House make Haliburton's look like kindergarten.

I can't find the link right now, but if you do you might not want to open it at work. :)

[marmar]

2. LOL....

"But really, I was reading the articles!"

[Jane Austin]

3. Hat tip to Rachel Maddow, who had the author on her show last

Friday.

Everyone who has read the article says it made their eyes bleed.

Between Air America Radio and DU, I am astounded at how much I know these days, and how little I used to know, pre-
aar and pre-DU.

[muriel_volestrangler]

5. Link here earlier on DU

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=103&topic_id=257176

As far as 'safe for work' goes, it's probably OK - just lingerie adverts next to it. Though the URL name might raise eyebrows, I suppose :D

[northamericancitizen]

4. recommended