Andrej Babiš - source: wikipedia

Babiš: his biggest enemy is the free market

Andrej Babiš - the current "hegemon" of the Czech political scene - for a long time seemed almost invincible. He is a technologist of power who bases his policy on the hard pursuit of his interests, on bribery and on his influence on the state administration. He does what he is used to - what he grew up on. When he loses these possibilities, so does his power.

Grandma is not a capable businessman

Babiš Babiš not a "capable and hard-working entrepreneur". Capable businessman is a person who can succeed on voluntary market, is competitive, adds some added value to the market. How is Andrej Babiš based on these criteria?

Not so great. There are too many coincidences around Agrofert regarding aggressive practices - liquidation of competing farmers by Roundup, hostile takeovers, use of capital raised through aid subsidies, contacts and acquaintances - whether it is the misuse of Eurodotes, which gives it an advantage over the competition, the use of political influence and the filling of key posts by "its" people or the abuse of Czech diplomacy for influencing the EU subsidy policy.

Today, when he threatens to Agrofert as a whole EU subsidies are lost, speculation is beginning to emerge about the group's possible financial problems. Agrofert is in debt, counts on subsidies in their plans and their strangulation to the creditor - banks - Of course he gets nervous. This is not a good situation for the company.

And it also shows that Andrej Babiš he is not a good businessman. In a voluntary market, he would not succeed in this way - he would not have the contacts to build his business; it would not have subsidies to raise additional capital for expansion; his business model would collapse - and his empire would never emerge.

Andrej Babiš is not a good businessman - it's just experienced power technologist. He grew up in state bureaucratic structures, in an environment of politicking, intrigue, intolerance and expansiveness. It's typical an oligarch whose survival depends on his connection to political power. He could not do anything with his own entrepreneurial skills.

Babiš was and is a "state"

After all, Babiš's "business model" is very similar to one apparatus we already know:

It depends on forced payments, not voluntary exchanges in the market. The one to whom it must bring added value is not the end customer, but a bureaucrat or a politician with decision-making power. Because of this, long-term loyalty is valued, not entrepreneurial invention. The goal is to conquer rent, not to do business in the market.

This is the principle bureaucratic management, exclusive to state organizations. Agrofert has always been and is a state. More precisely, its "privatized part" into the hands of one man - Andrej Babiš.

Agrofert has always been and is a tool for usurping the state monopoly on power for Andrej Babiš.

It's so natural that he tries to hold power at all costs - his survival depends on it.

Grandma is a symptom of a great state

Not to be a state-owned enterprise Spolana Neratovice, who sold share in the then Agrofert za 0,7 % values ​​of the time, today we would probably not know about Andrej Babiš. This extremely unfavorable sale is a prime example of the inability of the state to manage assets. Without Andrej Babiš's contacts and relations at the time with high-ranking state officials, his empire, the acquisition of capital, the purchase of the media and the creation of such an influential and rich movement as YEAR Yippee.

Not to be state interference in (not only) agricultural market, Andrej Babiš would never just acquire such significant capital strength to take over other companies and build financial resources to influence the media and public opinion. The effort of politicians to please voters through subsidies from private entrepreneurs created space for Babiš to grow his power influence - his dependence on subsidies and state influence of the private market led him to influence and commit the powerful, or to secure positions for "friendly people" to under the influence of insurance ensured the continuation of the flow of funds. Without state management and subsidies Andrej Babiš did not gain such power and capital strength.

The huge principal of his economic power is then regulation and their growth over time - without the possibility of competition, his empire has the certainty of existence. Deregulation is not in the interests of Andrej Babiš - it would bring room for the emergence of something that could jeopardize his economic position of power.

Liberalism as the only opposition

What is dangerous for Babiš is not a classic political opposition, it is not EET, it is not an accusation of misusing subsidies or pointing to cooperation with STB.

The basic pillars of Andrej Babiš's power are political relations - subsidies - regulation. These pillars are interconnected: subsidy they maintain capital by which he can strengthen his political relations and power. It uses them to maintain the flow of funds and regulations, which ensure Agrofert's strong position in the market.

If one of these pillars falls, Andrej Babiš will also fall. Political contacts they will not fall - there would have to be an almost revolutionary exchange of all influential people in the state administration, which Babiš would very easily re-commit. Deregulation It is a possibility, but it is a possibility for many years to decades.

Subsidies and economic impact they are the foundation on which everything else stands. Let's get rid of the subsidies, get rid of the political influence of Andrej Babiš and open up the possibility for deregulation, which will prevent the emergence of other similar oligarchs.

Only economic liberalism is thus a real opposition and a threat to Andrei Babis.

You could say that Andrej Babiš had to become a politician because he is an incompetent businessman.