He also showed preference to China in a multi-billion dollar anti-missile system tender. Equally important is the direct dependence of rentier economies on factors over which they seldom have any control: international demand for their primary source of rent income such as oil ; international developments that can drastically reduce their rent revenues the Gulf War and the resulting expulsion of many Jordanian expatriate workers from Kuwait ; and other market vagaries. In essence, both terms describe the same phenomena—namely, a self-serving ruling elite that has control over the vast natural resources of the country that provide the elite a financial basis for the government revenue, instead of the tax revenue collected by consolidated democracies from their citizens. He asked Putin twice to accept Turkey in the Shanghai Cooperation Organization which includes Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The country has achieved a high degree of economic diversification away from oil. To do business, foreign enterprises engage a local sponsor kafil who allows the company to trade in his name in return for a proportion of the proceeds — another type of rent. Oil, Autocratic Survival, and the Gendered Resource Curse: When Inefficient Policy Is Politically Expedient.
Beblawi, Hazem, Luciani, Giacomo 1987 The Rentier State: Nation, State and Integration in the Arab World. A useful distinction can be made here between rentier states and rentier economies. Within this type of rentier system, there is virtually no incentive to form associations or interest groups, and some of the governments even take deliberate action to depoliticize the population, which has never been politically active in a European sense. The essence of the ruling bargain was that the state provided social goods and services by renting out access to natural resources—often hydrocarbons or, for those not endowed with oil, migrant labor—in return for general societal acquiescence to a nonaccountable, undemocratic government. According to Elbadawi and Maksidi 2010 , these both events have played significant role on fluctuations of world oil prices, with implications on global scale. Additionally, these bureaucracies are highly susceptible to corruption more of which below.
As quantitative studies demonstrate, oil wealth has indeed a strong negative impact on the level of democracy Ross, 2001. Policy Implications The rentier state theory is the most prominent theoretic paradigm in the study of the comparative politics of the Middle Eastern Arab states, and it has increasingly been applied to the study of natural resource exporters in other regions of the world. This theoretical perspective is derived from the very core argument of the rentier state theory that oil rents are not only sources of valuable government revenues but also, more significantly, essential sources of political power. Comparative Politics, 20 1 , 1-18. Socio economic change and political implications: The Maghreb. Unfettered political activities are proscribed by a strong executive; civil society organizations depend on the clemency of state agencies to operate; and the ruling family is still the final arbiter of elite politics.
This revolution has been political, as well as, cultural. Although the underlying assumption of rentier state theory looks simple, its theoretical reformulations and applications need to be further explained in order to understand how rentierism works in some cases and fails to work the same way in some others. Rentier wealth, unruly law, and the rise of opposition: The political economy of rentier states. This theoretical argument has been advanced in a number of case studies and theoretic pieces by Lisa Anderson 1987 and Giacomo Luciani 1990a. Prosperity and violence: The political economy of development.
Towards a Theory of the Rent-Seeking Society. Political liberalization and democratization in the Arab world, vol. The state in the Middle East and North Africa. So, the green light had been given to larger and larger speculative land booms and busts from which it has become increasingly difficult for nations to extract themselves. Calvert Jones likewise notes the efforts of Gulf rulers to convert resource wealth into symbolic capital, such as social reforms by Saudi Crown Prince Muhammad bin Salman that aim at building popular support while undermining the authority of conservative religious clerics. Therefore, this period is also marked with criticism of academic works of previous contributors to the topic of rentierism. This can be seen for the region as a whole — so some states have been able to exploit location rent due to their strategic location, for example, as sites for military bases.
More recently, a time-series cross-national study using data from 113 states between 1971 and 1997 confirmed these initial empirical studies and showed that oil exports are strongly associated with authoritarian rule Ross, 2001. The politics of economic reform in the Middle East. Examples of rentier states include oil-producing countries in the region including , , , , , , and as well as a few states in Latin America, all of whom are members of. Levitsky S and Way L 2010 Competitive Authoritarianism: Hybrid Regimes After the Cold War. A third set of causal explanations in the literature holds that rentier wealth distorts social structure by preventing changes that promote democracy as compared with countries that follow a more standard development trajectory. Expatriate labor remained a more economical choice for private-sector employers, leading to a surprising number of layoffs of Saudi citizens in the wake of the global financial crisis and crashing oil prices over the course of 2008 to 2009. A review essay on aid dependency and state building in sub Saharan Africa Working Paper No.
The Ambiguous Effects of Oil Wealth and Oil Dependence on Violent Conflict? While many states export resources or license their development by foreign parties, rentier states are characterized by the relative absence of revenue from domestic taxation, as their naturally occurring wealth precludes the need to extract income from their citizenry. Essentially this placed Jordan in a position of no longer being to fund itself or its mass of citizens dependent on it. Furthermore, the effects of other resources with rentier potential are examined at the end of this section. The resulting rentierism has had two broad consequences for the region's political economy. Sustaining development in mineral economies: The resource curse thesis.
The institutional context and historical evolution of rentierism in the Middle East have had several negative consequences for the developmental potentials of the region. Andrew Leber, Harvard University This chapter is part of. The government has only to keep its people in line so that they do not overthrow it and start collecting the oil rents themselves. Arab Studies Quarterly, 10 4 , 457-475. This chart from shows property taxes were also the main source of revenue in the United States until the 1940s. While analyzing transnational influences, Thomas Richter and André Bank elaborate on the difference between relatively fuzzier diffusion and actor-based cooperation. A state or government that has access to a great deal of and uses it to maintain hegemony over its population.
The infrastructural power of these Arab states as well as their capacity to actively control political outcomes independent of societal constraints is limited. Richter T and Bank A 2016 Transnational Diffusion and Cooperation in the Middle East and North Africa: A Conceptual Note. A regional diffusion perspective can fix this shortcoming of the rentier state model. Second, Erdoğan has established military cooperation with Saudi Arabia and Qatar. Journal of Conflict Resolution 49: 483— 507. In practice, dependence on oil exports is observed almost always along with rentierism.