Revealing the true roots of inequality, Elite Networks reveals that income disparity isn't a natural byproduct of economic systems, but a man-made phenomenon deeply tied to the misuse of political power.
About the BookElite networks are informal social networks between politicians in power and top executives of politically connected firms where personal ties and long-term interactions build trust and loyalty between involved actors. Both groups draw benefits from these interactions; politicians stay in power, and corporate executives extract rents for their firms. Firms reward connected executives with higher salaries thus widening the dispersion of earnings in society.
In Elite Networks, Vuk Vuković offers a different perspective on the long-run origins of inequality. Calling upon historical arguments and direct empirical evidence, Vuković argues that inequality is not an artifact of a particular economic system, but a man-made phenomenon rooted deeply within the, often violent, quest for political power. Further, he theoretically and empirically establishes the impact elite networks have on higher inequality. Offering a unique contribution to the field, this book argues that to lower inequality and prevent incentives of elite network formation, we must first and foremost lower centralized political power and re-empower the citizens and the community by rebuilding trust and relying on the democratic trial-and-error mechanism. |
Vuk Vuković exposes the hidden web of elite networks where politicians and corporate leaders form powerful alliances that shape inequality through trust, loyalty, and mutual benefits. |
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This groundbreaking book explores how the concentration of political power, not just economic systems, has driven inequality for millennia—from ancient civilizations to modern capitalism and beyond.
Reviews
“Vuković’s sweeping reimagining of the drivers of economic inequality introduces the notion of elite networks— informal social networks between political and economic leaders— as a key mechanism behind the steady accumulation of wealth by small elites in almost all societies. Moving beyond explanation, he identifies concrete steps to advance economic equality through decentralizing reforms. A powerful, compelling combination of theory, history, and data analysis that should reshape how we understand the links between economic and political power.”
— Jacob N. Shapiro, Princeton University
“This is a supremely ambitious and provocative book. It offers a sweeping account of the sources of inequality across the world and attempts to uncover and document universal laws about capitalism, social and political organization, and the distribution of resources akin to Thomas Pikketty’s Capital in the 21st Century. Deemphasizing the idea that market power or enduring competitive advantages are a symptom of the search for profits in the crucible of creative destruction, Vuković stresses that, even in the most innovative countries, corporations secure barriers to entry that engender entrenched class stratification. It therefore follows that sealed off elite networks are at the heart of modern, post Malthusian inequality everywhere, both in the developed and developing world. Whether you agree or not, this is a must read!”
— Victor Menaldo, Professor, University of Washington, and Co- founder of the UW Political Economy Forum
“Elite Networks is a powerful and groundbreaking analysis of how privileged groups exploit their positions to secure economic resources. In this wide- ranging tour de force, Vuković shows how political influence pervades every aspect of our economy, underpinning the global rise in inequality.”
— Ben Ansell, University of Oxford, and author of Why Politics Fails
“Elite Networks is a groundbreaking book that delves deep into the roots of income inequality. Empirically and descriptively rich, the book elucidates how extractive political power drives this pervasive problem, unveiling the intricate web of informal relationships between politicians and influential corporate figures. The book's strength lies in its ability to connect the dots between intra- elite trust, loyalty, and the alarming income disparities we witness today. What sets the book apart is its bold assertion that income inequality is not an inherent feature of economic systems but a result of deliberate actions stemming from the quest for centralized political power. In a world grappling with inequality, this book challenges us to rethink our approach and offers a path toward a fairer society. Elite Networks is a must- read for anyone seeking a deeper understanding of income inequality and a roadmap for meaningful change.”
— Josip Glaurdić, University of Luxembourg
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About the AuthorVuk Vuković is the CIO and cofounder of Oraclum Capital, a New York hedge fund based on a scientific innovation in network theory. He has a PhD from the University of Oxford, and an MSc from the London School of Economics. He published a dozen academic papers during his time as a university lecturer, and his academic work on political economy and networks has inspired his business ventures.
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