A Schumpeterian Analysis of the Eurobond Scandal through Rothbard’s Cui Bono

Source: Cobden Centre
by George Omondi Ojwang’

“Joseph Schumpeter, in Capitalism, Socialism and Democracy (1942), offered a starkly realistic definition of democracy: it is not the rule of the people by the people, but ‘that institutional arrangement for arriving at political decisions in which individuals acquire the power to decide by means of a competitive struggle for the people’s vote.’ In this view, democracy functions as an elite contest, politicians and their coalitions vie for office, much like firms compete in a market. Once victorious, they wield state power not primarily for the public good but to reward supporters, secure reelection, and extract rents. Kenya’s post-1992 multiparty system embodies this Schumpeterian reality: competitive elections occur, yet governance remains ‘politicians’ rule,’ where the apparatus of the state serves the victors’ networks rather than the electorate.” (05/28/26)

https://www.cobdencentre.org/2026/05/a-schumpeterian-analysis-of-the-eurobond-scandal-through-rothbards-cui-bono/