International Rentierism in the Middle East Africa, 1971–2008 (original) (raw)

RENTIER STATE IN THE MIDDLE EAST REGION_by Petra Čačić.docx

Present-day most common meaning of rentier state stands for a state that obtains most or a considerable portion of its national revenues from the rent of domestic natural resources to external clients. In this essay I will show what is meant by the term “rentier” and explain in more detail the main features of the rentier states. Political economy approach asserts that the rentier nature of the state has major effect on the lack of democracy in countries whose economy rests on a significant oil rent. Having in mind this statement I will reflect on a question if natural resource wealth promotes authoritarianism, as well as demonstrate how distinction between economic and political sphere is purely methodological and not organic, meaning that we can distinguish them analytically but in practice they are intertwined. Case study of Saudi Arabia will serve to illustrate the applicability of the rentier framework for describing empirical reality and to reveal potential shortages of frequently used rentier theory. I will mention the events that do not go in favor of the rentier theory, such as the growth of the opposition against the regime and the increase of private sector involvement in Saudi Arabia’s economy.

A Theory of "Late Rentierism" in the Arab States of the Gulf

Established in 2005, the Center for International and Regional Studies at the Georgetown University School of Foreign Service in Qatar is a premier research institute devoted to the academic study of regional and international issues through dialogue and exchange of ideas, research and scholarship, and engagement with national and international scholars, opinion makers, practitioners, and activists.

"A Well-Oiled Machine" The Limits of Rentierism: The Case of Saudi Arabia

This research explores the soundness of the classical rentier state theory in analyzing oil reliant states considering oil price fluctuations and their outcomes on rentier cases. Ever since its discovery, oil has played a major role in shaping rentier economies and their policies. However, oil reliance is regarded to be a double edged sword as the huge inflows of rent could lead to a series of long-term societal and economic risks otherwise dubbed as the “rentier curse”. The effects of such curse have been showing over the years in examples such as Venezuela, Saudi Arabia and several other oil reliant states. Nevertheless, not all rentier cases suffer from the same socioeconomic issues or react similarly to international oil price fluctuations. The aforementioned calls for a deeper understanding of such variations as the classic rentier state theory provides static tenets for rentierism as a “one size fits all” labeling mechanism. Although this is useful in understanding the nature of the rent seeking behavior, it is quite simplistic as some rentier states seem to suffer more than others. This has been further exacerbated by the recent and ongoing oil price drop which started in 2014 and already affected the budgets of such states. Although all oil reliant cases incurred massive deficits, some seem to be more capable of weathering the storm while other cases are preparing for drastic economic transformation. A perfect example is the Kingdom of Saudi Arabia which adopted relatively “extreme” fiscal reforms and is in the process of accomplishing the Vision 2030 plan which primarily aims at marginalizing, if not eliminating, the Saudi reliance on rent revenue. Such policies and plans, combined with the inherent fiscal, demographic and socioeconomic differences between rentier states when reacting to oil price shocks not only calls for questioning the current analytical value of the classical rentier state theory, but also calls for a post-rentier labeling for cases similar to Saudi Arabia.

LEBANESE AMERICAN UNIVERSITY The Limits of Rentierism and the GCCs’ Move toward “Greater” Liberalism

2016

With radical transformations of the political economies of the Gulf in the past decade, conventional Rentier State Theory (RTS) fails to adequately explain many of the modern aspects of the GCC’s politics. Through a theoretical and empirical assessment of the theory, this thesis will investigate the theory’s shortcomings when applied to the dynamic economies of the Gulf countries. This will be conducted by undertaking an in-depth analysis of GCC macroeconomic performance with a focus on diversified economic challenges and its contemporary complications. Subsequently, the effect of natural gas revenues, states strategies, and the drift of foreign labor in relation to heightened liberalism in the gulf market will be delineated. Therefore, the paper will aim at deducing the theoretical modifications necessary in rendering RTS as pragmatically relatable to the present economics of the Gulf countries.

Oil, Authoritarianism, and Natural Resource Rents: The Case of the Arab Gulf

This work seeks to test the viability of Rentier State Theory for explaining economic and political developments in the Arab Gulf. In particular, this theoretical paradigm is used to analyze the aforementioned developments in the Gulf Cooperation Council (GCC States): Saudi Arabia, Bahrain, Qatar, The United Arab Emirates, Kuwait, and Oman. This research contends that the economic and political trajectories of the GCC states are directly linked to the accrual and dissemination of natural resource rents.

‘Can’t buy me legitimacy’: the elusive stability of Mideast rentier regimes

Journal of International Relations and Development, 2017

This paper qualitatively revisits the thesis that rentier regimes can draw on their non-tax revenues to buy political legitimacy and stability. Exploring the material/moral interplay in Mideast rentier politics, I show why and how rents may provide for provisional, but not sustainable, stability for authoritarian rentier regimes. I propose distinguishing between negative and positive political legitimacy, the former being about 'what is legitimate' (liberty vs security), and the latter about 'who is the legitimator' (divine/hereditary right vs popular sovereignty). Sustainable stability is predicated on having both legitimacies. Rentier regimes, however, often draw exclusively on negative political legitimacy. These regimes can use rents to buy timethrough coercion and expediencycontriving an imagery of a lusty Leviathan. But due to the diversity of rents and the temporal shifts in their revenues, this social contract is materially contingent and morally frailrendering authoritarian rentier regimes, not least in the Middle East, more mortal than they, and many observers, are ready to admit.

Rents, financial development, and economic growth in MENA countries, 2000-2020

Regional Statistics, 2024

This paper investigates the role of natural resource rent and other forms of rent on the economic growth of Middle Eastern and North African (MENA) countries within the framework of the rent curse theory. Rent curse theory suggests that while certain types of rent, such as geopolitical, regulatory, and labour rent, can hinder growth, others may act as incentives. Employing the partial least squares structural equation model (PLS-SEM), this study examines the impact of rent and financial development on economic growth in the region. The empirical findings reveal that forms of rent derived from natural resources and regulatory rent have a negative effect on financial development and economic growth, but labour rent and geopolitical rent do not have any contribution to economic growth, so the rent curse theory cannot be confirmed by these two sources of rent. Furthermore. The result indicates that financial development is a crucial factor for economic progress. Moreover, the study suggests that globalization can enhance financial development in MENA countries and stimulate growth.