The Influence of Money on Politics: The Power of Merchant Interests

Mahmoud Khweis – Feb 2023

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The Influence of Money on Politics: The Power of Merchant Interests

This morning, a friend introduced me to Prof. Emanuel Ezekiel of the Wharton School, University of Pennsylvania. After spending a few hours browsing his LinkedIn and personal website, I came across his free course on Coursera about the life of Benjamin Franklin. Intrigued, I decided to enroll and have already completed the first two lessons. While watching an interview video titled " In Conversation with Prof. Emma Hart about 18th Century "during the second lesson, I was struck by the mention of the "merchant interest in favor of the American cause". This moment inspired me to write this article and reflect on the significant power that merchants hold in our current politics.

Quoting: Prof. Emma Hart “And when in the 1770s some members of parliament they?were thrown out of their seats for not representing the merchant?interest in favor of the American cause, they were shocked.?They were like, how is it that I can be voted out for?disagreeing with the people who voted me in.?And so this idea of direct representation was just so alien to the British and?I'm sure that Franklin can understand this from these close quarters.” End quoting.??

The role of money in politics is a topic of constant debate and analysis in contemporary societies. In this article, I will examine the influence of money on politics with a specific focus on the power of merchant interests in exerting their influence on governments across the board.

The Influence of Money on Politics:

The influence of money on politics is a widely recognized phenomenon. Political campaigns, lobbying efforts, and the funding of political parties all require substantial financial resources. As such, money is a vital factor in shaping political outcomes. Money can be used to shape political discourse, fund political campaigns, and support candidates or political parties that align with the interests of the financiers. And here are three examples of the influence of money on politics in the Arab world.

1.??????Qatar's Lobbying Efforts in the United States: Qatar, a wealthy Arab nation, has engaged in significant lobbying efforts in the United States to influence policymakers. In 2018, it was reported that Qatar had spent over $16 million on lobbying efforts, including hiring high-profile lobbyists and sponsoring influential events. This lobbying effort is believed to be aimed at shaping US policy towards Qatar and its neighbors in the Gulf region.

2.??????Wealthy Businessmen Running for Office in Egypt: In Egypt, wealthy businessmen have increasingly entered the political arena by running for office. These businessmen, who have made their fortunes through various industries such as real estate and telecommunications, use their financial resources to fund their campaigns and gain an advantage over other candidates. Some argue that this trend has contributed to a lack of diversity in the Egyptian political landscape and has resulted in an over-representation of business interests in government.

3.??????Saudi Arabia's Influence on Lebanese Politics: Saudi Arabia has been accused of using its financial resources to influence politics in Lebanon. In 2017, it was reported that Saudi Arabia had cut funding to the Lebanese government and had urged Saudi citizens to leave the country. This move was widely seen as an attempt to influence Lebanese politics, as Saudi Arabia was believed to be unhappy with the growing influence of Iran-backed Hezbollah in Lebanon. This example highlights how money can be used as a political tool to exert influence over other nations.

The Power of Merchant Interests:

Merchants are a particularly influential group in the political landscape due to their substantial financial resources and economic power. Merchants have always played a role in shaping politics, as they have been able to leverage their financial resources to influence political decision-making. Today, merchants continue to exert a significant influence on politics, particularly through lobbying efforts and campaign donations. And here are three examples of the power of merchant interests in the Arab world.

1.??????The Role of the Gulf Cooperation Council (GCC): The Gulf Cooperation Council (GCC) is an economic and political alliance of six Arab states in the Persian Gulf, including Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman. The GCC has significant economic power due to its vast oil reserves, and its member states have used this power to influence politics in the region. For example, the GCC has been involved in providing financial aid to other Arab countries, such as Egypt and Jordan, to support their economic development and gain political influence in these countries.

2.??????The Role of Businessmen in Lebanese Politics: Businessmen have long played a role in Lebanese politics, and their influence has only increased in recent years. Many wealthy businessmen in Lebanon fund political parties and candidates, and some even run for office themselves. This has led to concerns about the concentration of power in the hands of the economic elite and has been seen as a barrier to political reform and democracy.

3.??????The Role of Private Sector in the UAE: The United Arab Emirates (UAE) has a highly developed private sector, and businesses in the UAE have significant economic power. The government of the UAE has encouraged the growth of the private sector and has often relied on businesses to support its economic and political initiatives. For example, in 2020, the UAE government announced a series of economic reforms aimed at attracting foreign investment and diversifying the economy. These reforms were supported by the private sector, which saw them as an opportunity for growth and expansion. This example shows how merchant interests can align with government policies and initiatives to achieve mutual benefits.

Lobbying:

Lobbying is a widely used method for merchants to exert their influence on politics. Lobbyists are employed by merchants to communicate their interests to policymakers and to ensure that their interests are represented in the political decision-making process. Merchants use lobbyists to influence the content of legislation, secure government contracts and ensure that their business interests are protected.?And here are three examples of merchants lobbying to influence politics in the Arab world.

1.??????In Saudi Arabia, the Council of Saudi Chambers is a powerful lobbying group that represents the interests of businesses in the country. They have advocated for policies that promote economic growth and development, such as investment in infrastructure and the development of new industries. They have also worked to improve the business environment in the country by pushing for regulatory reforms and reducing bureaucratic red tape.

2.??????In Bahrain, the Bahrain Chamber of Commerce and Industry is a prominent lobbying group that represents the interests of businesses in the country. They have advocated for policies that support the development of the private sector, such as tax breaks and other incentives for businesses. They have also worked to promote Bahrain as a hub for international trade and investment.

3.??????In Tunisia, the Tunisian Union of Industry, Commerce and Handicrafts is a powerful lobbying group that represents the interests of businesses in the country. They have advocated for policies that support economic growth and job creation, such as reducing taxes on businesses and promoting investment in key sectors. They have also worked to improve the business environment in Tunisia by pushing for regulatory reforms and reducing bureaucracy.

Additional instances of merchants lobbying to influence politics in the Arab world include the Cairo Chamber of Commerce and the Federation of Chambers of Commerce, Industry and Agriculture in Lebanon, among others.

Campaign Donations:

Another way merchants exert their influence on politics is through campaign donations. Merchants donate to political parties and individual candidates who they believe will further their interests. These donations are often substantial and can be used to fund campaign events, television ads, and other campaign materials. In return, merchants expect political favors and access to policymakers who can help them achieve their goals.

Campaign finance laws in the Arab world vary from country to country, and some countries have stricter regulations than others. In general, business people and merchants in the Arab world have been known to use their financial resources to support political candidates and parties that align with their interests. This can take the form of direct donations to candidates or parties, as well as support for political action committees and advocacy groups.

One example of merchants exerting their influence on politics through campaign donations is the case in Saudi Arabia. The country has strict campaign finance laws, but wealthy businesspeople and merchants are still able to exert their influence through donations to political campaigns and charitable organizations. Some have criticized this practice, arguing that it allows wealthy elites to exert undue influence on the political process.

Another example can be seen in the United Arab Emirates, where wealthy businesspeople and merchants have been known to donate to political campaigns and parties.

While the country has laws regulating campaign finance, there have been concerns about the lack of transparency in the political process and the influence of money on politics.

In Egypt, businesspeople and merchants have also been known to make donations to political campaigns and parties. In some cases, this has led to accusations of corruption and undue influence on the political process. The government has taken steps to increase transparency in campaign finance, but there are still concerns about the influence of money on politics in the country.

Here are three examples of other countries merchants exerting their influence on politics through campaign donations:

1.????In the United States, business magnate and philanthropist Michael Bloomberg has used his vast personal fortune to donate to political campaigns and causes that align with his interests. He has been a major donor to candidates running for office at the federal, state, and local levels, and has also supported a number of political action committees and advocacy groups.

2.????In India, the Tata Group is one of the country's largest and most influential business conglomerates. The company and its affiliates have been known to make significant campaign donations to political parties and candidates, particularly those who are seen as friendly to their interests. In some cases, this has led to accusations of corruption and undue influence on the political process.

3.????In Brazil, the meatpacking company JBS has been at the center of a number of high-profile corruption scandals in recent years. The company has been accused of making illegal campaign donations to politicians in order to secure favorable treatment from the government. This has led to widespread protests and calls for greater transparency and accountability in Brazilian politics.

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The influence of money on politics is a complex and multifaceted issue, with merchant interests playing a significant role in shaping political outcomes. Merchants use their financial resources to influence the political decision-making process through lobbying efforts and campaign donations. It is important for policymakers and citizens alike to be aware of the power of merchant interests and to ensure that the political process remains transparent and accountable to all members of society.