794: Alastair Smith | The Dictator's Handbook Part One

Borrowing Tactics

Dictators often use borrowing as a strategic tool to maintain power and limit challenges from rivals. Alastair Smith explains that smaller coalitions have a greater incentive to borrow money, as it preempts potential challengers by reducing their future borrowing capacity 1. This tactic allows dictators to distribute borrowed funds to their supporters, ensuring loyalty and stability within their regime. Smith likens this to using a credit card to throw a party, where the leader benefits immediately while leaving the repayment burden to future administrations 2.

It's like screwing up the economy of my country and sacrificing the economic future of the nation. It's a feature, not a bug.

--- Alastair Smith

This approach highlights the political rather than financial nature of debt, as leaders prioritize short-term gains over long-term economic stability.

   

Resource Control

Resource control is another method dictators use to maintain their grip on power. Jordan Harbinger notes that leaders often exploit natural disasters to their advantage, allowing famines and floods to persist as a means of weakening potential opposition 3. Smith adds that governments may engineer such crises to divert aid for their own benefit, further entrenching their power 3.

It's sort of a terrible thing that we desperately want to fix a problem that's outside of our ability to fix.

--- Alastair Smith

Additionally, access to valuable resources like oil and diamonds enables dictators to sustain their regimes without relying on the populace for revenue, prolonging their rule 4.