Charnysh V, Markus S.
The Flexible Few: Oligarchs and Wealth Defense in Developing Democracies. Submitted.
AbstractBased on an original large-N dataset of individual Ukrainian oligarchs and
qualitative evidence, we test competing perspectives on the political power
of big capital. We find, surprisingly, that neither the assumption of direct
power by the oligarchs, nor the mobility of oligarchic assets, help tycoons
protect their fortunes against shocks. Instead, the indirect strategies of
party support and media ownership significantly enhance business wealth.
Empirically, we profile postcommunist oligarchs by examining the political
and economic activities of 177 Ukrainian oligarchs from 2006 to 2012.
Theoretically, we contribute to the literatures on instrumental and
structural power of capital, and on the interactions between extreme
wealth, rule of law, and democracy. In doing so, we contrast the logic of
flexibility, according to which oligarchs benefit from political adaptability
and deniability, with the logic of commitment compensation, according to
which oligarchs benefit from direct power when the rule of law is weak.