Military Control of Economies: Iran and Venezuela

I've previously mentioned in prior blogs that the militaries of Venezuela and Iran have been given influence over their economies. Specifically, in terms of Iran, this is one reason given for recent protests due to the graft/corruption that this brings.



I figured I'd provide a summary of their control based on a couple articles I've read.

In terms of Iran, I came across a Maclean's article that puts together a nice list of areas controlled by the Islamic Revolutionary Guards Corp (IRGC):

1. Internet Telecom
2. Oil and Gas
3. Banking
4. Insurance
5. Mining
6. Construction
7. Soccer teams
8. Hotels
9. Investment corporation

Vox compiled a list of areas controlled in Venezuela by the military:

1. PDVSA -- Venezuela's oil company
2. A television station
3. Food imports
4. A bank.

As mentioned in the Vox article and I agree with it, this is actually a sign of weakness for both regimes. Both regimes likely fear a potential military coup. In order to prevent that from happening, they pay off the military leaders by giving them control of certain parts of the economy. Citizens, of course, aren't stupid and can see how this is playing out.

Reading through the above lists, reminds me of listening to Sarah Chayes at the Los Angeles Times Festival of Books back in 2016. At the time, she'd recently written a book called: Thieves of State: Why Corruption Threatens Global Security.

The Telegraph UK has a nice summary of her thoughts:

Many governments are machines for fleecing their citizens. Citizens become tired of paying off corrupt officials, and try to stop. The officials force the citizens to pay up. The citizens, angered, fight back. Violence erupts: leading to bloodshed, terrorism, human rights abuses, and the rest.