High level of incompetence

There are many similarities between the privatization of natural resources and state assets in Russia and Iceland. The privatized banks in Iceland were quick to buy media assets and use their ownership to create a favorable media environment and fight battles against critics and competitors. Both countries suffered from the same lack of an efficient regulatory and supervisory framework and democratic deficiencies. The Icelandic civil service has for a long time suffered from nepotism and political allocation of jobs. It has led to high level of incompetence.

From Icenews.is


2 Responses to “High level of incompetence”

  1. 1 Vilhjalm A. January 12, 2009 at 12:48 am

    I just discovered your blog — it’s great. Maybe the best account of how it all went wrong for Iceland. Previously I had not understood how the Bjorgulf and Jon Asgeir crowd had profited from the banks, apart from the share price inflation, but now I see from your comments that they had been skimming off profits through all these shell companies and other shady, “bottom-feeder” deals.
    All the worse predictions for Iceland seem to prove themselves correct, so I would not be surprised if in a few years 30-40% of the population (the under 40 group) emigrates and Iceland itself becomes a shell consisting of fishermen and government employees and old people. Anything of value in the country will be owned either by foreign creditors or by the Bjorgulf-Jon Asgeir crowd. Also, I expect that the next batch of money to be looted will be the pension funds. We shall see.
    It seems that the outside world has lost interest in Iceland now but what has happened is a fascinating example of the end-game of capitalism. What has happened here will happen in the US in about 15-20 years from now, if not sooner. Massive corruption, socialization of debt and privatization of wealth, extreme wealth concentration, and so on.
    Thanks very much for your blog.

  2. 2 drafnsson January 12, 2009 at 8:02 am

    Thanks Vilhjalm, I think you might be right. There will be a quiet emigration taking place in the next couple of years, leaving us poorer for it.

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