The Sociology of the Gulf Rentier Systems: Societies of Intermediaries (original) (raw)
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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.
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 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.
International Rentierism in the Middle East Africa, 1971–2008
International Area Studies Review
What is the trend in rentierism in the Middle East and North Africa? Defining a rentier state as one that extracts a significant share of its revenues from rents extracted from international transactions, we examine a range of such transactions that together constitute a third or more of the Middle East/North Africa economies. Outlining a rentierism index that is based on the share of GDP stemming from oil/mineral exports, foreign military and economic aid, worker remittances, and international tourism, we show that rentierism is growing and that 18 of the 22 Middle East/North Africa states depend for over a third of their GDP on these international transactions. Some depend on direct rents stemming from oil/mineral exports and foreign aid, while others rely increasingly on indirect rents from remittances and tourism. This split between direct and indirect rents has implications for the political stability of these states, because it creates states that are more or less able to main...
Rentier State Theory and the Arab Uprisings: An Appraisal
ABSTRACT This article aims to analyze the implications of the Arab uprisings on the Rentier State Theory (RST). Initial conceptualization of rentier state was based on the impact of externally generated oil revenues on the economic development as well as the nature of the state and state-society relations. Especially since 2000s the literature has been largely dominated by the study of relationship between rentier states and democratization. Based on the observations of the earlier literature, most of the studies argued that there was a strong correlation between rentierism and lack of democracy. There were also few studies that challenged this argument. The Arab uprisings should lead to the revisiting of the arguments of the RST. In only two of the rentier states, namely Bahrain and Libya, has there been a widespread uprising. Both ended through outside intervention, one in support of the regime, the other against it. In other rentier states, limited protests did not lead to uprisings. Therefore, the question is twofold: First, what do the full-scale uprisings in two rentier states tell us? Second, what does it tell us that with the exception of these two states, all other rentier states have been able to maintain stability?
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.
Rentier States as Monarchies: The case of Kuwait and Saudi Arabia
2018
In recent years, there is a surge in social movements as part of increasing political participation in the Middle East. A prime example is the set of democratic uprisings erupted in 2011, commonly known as the Arab Spring. This revolution and the subsequent failures in most cases are indicative of Middle Eastern dictators’ vehement resistance against the implementation of democratic institutions. However, even before the Arab Spring, the rulers in Kuwait had embraced a semi-democratic model by establishing a parliament that now coexists alongside the royal family. Meanwhile, the royal family in Saudi Arabia continues to wield its monopoly of political power upon one of the least free countries in the world as well as among the Gulf nations. What can explain the divergence in the governmental structure and discrepancy in the degree of political freedom despite the fact that both states share many similar factors, including region, religion, language, and large oil reserve? What precipitated democratization in the case of Kuwait and what factors led to the consolidation of autocracy in the case of Saudi Arabia? The first section of this paper provides a brief historical overview of the governmental structure of Saudi Arabia and Kuwait. Subsequently, the second section showcases possible factors that led to different paths of political development between these two countries proposed by a number of scholars. Finally, in the last section, this paper evaluates these explanations, introduces the case of Dubai and Bahrain for comparison, and offers a more comprehensive causal mechanism.
POLITICO
The GCC states’ high dependence on the hydrocarbon sector does not reflect a sustainable economy. Therefore, it is demanded that those states reform the economic system that has long been preserved and accelerate economic integration in the region to reduce oil dependence. This article aims to analyze the hindrances to the economic reform program and the intention to achieve economic integration within the rentier state in the Arab Gulf states. This article uses a qualitative method through an explanatory and descriptive approach to elaborate on the issues. This study indicates that a comprehensive economic reform in GCC countries is hard to implement due to the existing political structure and socio-cultural conditions. Were to reform the economic system totally, rulers would have a dilemma regarding the regime's sustainability. Meanwhile, the move towards economic integration within the GCC countries remains unachievable due to such unresolved issues as mistrust among ...