Khaki capitalism
THE darkest character in Joseph Heller’s dark novel, “Catch-22”, is Milo Minderbinder, a lowly mess officer who runs a huge business empire, M&M Enterprises, on the side. He flogs “surplus” army supplies, travels the world making deals and accumulating extravagant official titles (such as Caliph of Baghdad and Mayor of Cairo) and, in the spirit of popular capitalism, gives his fellow soldiers nominal shares in his ever-expanding business. M&M Enterprises almost crashes when the caliph-cum-mayor overextends himself by buying all the cotton in Egypt. There is so much of the stuff that he cannot get rid of it even by covering it in chocolate and serving it to the troops. The American government eventually steps in to solve his mounting problems: M&M Enterprises has grown too big to fail.
Milo Minderbinder’s spirit is still alive in the land that almost destroyed him with its cotton. The Egyptian army has more on its hands than running armoured cars over people in Tahrir Square. It also runs about 10% of the economy. Military-backed companies produce cement, olive oil and household appliances as well as arms. They also provide pest control, catering and even child care. The army owns large chunks of Egypt’s most precious commodity, land, particularly on the Red Sea coast. It also leans on private companies to provide powerful retirees with jobs.
The Egyptians have plenty of brothers-in-arms-and-boardrooms. Pakistan’s top brass are even more enterprising. Ayesha Siddiqa, the author of “Military Inc: Inside Pakistan’s Military Economy”, calculates that the army controls a $15 billion empire, with hundreds of companies making everything from fertiliser to breakfast cereals. In China the People’s Liberation Army took Deng Xiaoping’s aphorism that “to get rich is glorious” as a direct order. At one point in the late 1980s it was running nearly 20,000 firms. Military men in Thailand and Indonesia have a long tradition of padding their pay with profitable enterprises. Zimbabwe’s army has recently formed joint ventures with Chinese partners in farming and mining. Even in democratic India the army runs about a hundred commercial golf courses.. http://www.economist.com/node/21540985
