1/ A thread on why corrupt real estate tycoons are terrible for the economy.
First, the more obvious. They make money by stealing from the public, i.e. they "buy" public land at way below market value through bribes and connections.
ft.com/content/379d2c…
First, the more obvious. They make money by stealing from the public, i.e. they "buy" public land at way below market value through bribes and connections.
ft.com/content/379d2c…
2/ Second, the stealing takes resources away from more productive uses, and real estate investment has the lowest productivity. The net result is a very low investment rate overall for the country.
3/ Finally, it gets even worse when tycoons and their cronies launder the profits out of the country as dollars/pounds. This puts downward pressure on balance of payment, and forces the country to export just to pay for the stolen profits of the tycoons.
