Another issue I heard about is that all the top oligarchs are in raw materials and energy. The oligarchs doing actual "complex" tech like weapons, coal extraction machinery etc, are only in the second tier at best. As you can imagine a environment where they can take your company away at any moment doesn't breed innovation (or the wish to do things particularily orderly).

> A small dictatorship of NK can be controlled by a handful of people

This is an interesting observation because it is the opposite of Alexis de Tocqueville‘s observation that democracy was well-suited to small states like Athens and Britain but large states like Russia needed autocracy.

Allocation of capital is terribly suboptimal in a badly managed state without good checks and balances.

Consider USA where there is a mismanagement problem with healthcare -- onerous regulations, rent-seeking, gatekeepers, state capitalism, crony capitalism, corrupt bureaucracies, anti-trust issues, and insufficient investment in training and development.

If healthcare is unnecessarily expensive by 10% -- then that's 2% of the American economy misallocated. Also, the lost human potential because of worse healthcare outcomes is another drain.

Now imagine if that was par for the course everywhere you look.

Maybe I'm misunderstanding what you write, but how do you explain the Chinese Communist Party still being in power since 1949? It's anything but transparent or accountable.