Geopolitical Power, Private Gain
Alexander Cooley & Daniel Nexon | Foreign Affairs, March/April 2026
The Age of kleptocracy defines a global system in which political authority and private wealth are increasingly intertwined. In their article, Alexander Cooley and Daniel Nexon argue that state institutions now operate in ways that allow elites to accumulate and protect personal fortunes through international financial structures.
Rather than being limited to weak or corrupt states, these practices are embedded within global markets, offshore banking centers, and transnational investment flows. Financial secrecy jurisdictions, shell companies, and real estate markets enable political actors to move assets across borders with relative ease. As a result, geopolitical competition intersects with systems that facilitate private gain.
Age of kleptocracy and financial networks
In the Age of kleptocracy, economic relationships serve dual purposes. They sustain commercial exchange, but they also create channels of influence and patronage. Capital flows can reinforce political loyalty, secure alliances, and expand leverage abroad.
Moreover, global finance often benefits from these arrangements. Democracies and authoritarian regimes alike receive investments, even when the sources of wealth raise governance concerns. Consequently, efforts to regulate corruption face resistance from powerful economic interests.
Institutional consequences and reform challenges
The authors stress that this dynamic weakens accountability. When leaders prioritize wealth accumulation, public institutions lose credibility and citizens lose trust. Governance becomes vulnerable to capture by private networks.
Ultimately, Cooley and Nexon contend that addressing this system requires coordinated transparency measures and stronger regulatory frameworks. Without collective reform, the structural incentives sustaining the Age of kleptocracy will continue shaping global politics.
Reference
Cooley, A., & Nexon, D. H. (2026). The age of kleptocracy: Geopolitical power, private gain. Foreign Affairs, 105(2). https://www.foreignaffairs.com/