Cronies and capitols

IN 1994 many Italians voted for Silvio Berlusconi in the hope that he could use his skills as a businessman to revive a sclerotic economy. He had built a property-and-media empire out of thin air. He had reinvigorated one of the country’s great football clubs, AC Milan. Surely he would do a better job of running the country than the old guard of corrupt politicians and introverted bureaucrats? Well, si monumentum requiris, circumspice. Mr Berlusconi was prime minister of Italy for eight of the ten years between 2001 and 2011. During that time Italy’s GDP per head fell by 4%, its debt-to-GDP ratio rose from 109% to 120%, taxes rose from 41.2% of GDP to 43.4%, and its productivity stagnated. Rather than using his business skills to revive the Italian economy, Mr Berlusconi used his political skills to protect his business interests.

The great seducer is an extreme example. And with luck Italy’s long Berlusconi-themed nightmare is drawing to a close. But the problem at the heart of Mr Berlusconi’s Italy—the commingling of power and business—is a growing worry around the world.