From rentier economy to rentier mentality in the arab world. The rentier regime is a particular regime with its mode of regulation boyer, 2015, p. The financial oligarchy of the rentier state appropriates a considerable portion of the national income of debtor states in the form of profits interest and dividends from direct. Rentier state and shia islam in the iranian revolution theda skocpol the recent overthrow of the shah of iran, the launching of the iranian revolution between 1977 and 1979, came as a sudden surprise to outside observers from the american friends of the shah, to journalists and political pundits.
Drawing on contemporary history and empirical research, this article revises traditional rentier state theory, which fails to account for the existence of islamist movements in states accruing substantial outside wealth. Rentier state theory rst remains the dominant literature on statesociety relations in the arab states of the gulf, yet by focusing on case studies of three ostensibly rentier states, qatar, bahrain, and oman, and their experience during the post2011 period, this dissertation challenges assumptions of rentinduced political stagnation, state autonomy, and poor economic development. The rentier state is a political economy theory that seeks to account for state society. The rentier state in the arab world hazem beblawi introduction the concept of a rentier state has gained renewed interest with the advent of the oil era and the emergence of the new arab oilproducing states. Development of rentierism posted on march, 2014 by john dudovskiy rentier state theory is a political economy theory that seeks to explain statesociety relations in states that generate a large proportion of their income from rents, or externallyderived, unproductivelyearned payments gray, 2011, p. The resource curse and rentier states in the caspian region. An essay on the theory of the rentier state request pdf. Rentier capitalism has become predominant in capitalistic economies since the 1980s. Statebuilding is thus the process by which the state not only grows in economic productivity and government coercion, but also in political and institutional power. Rentier state and shia islam in the iranian revolution.
The corruption of capitalism argues that rentier capitalism is fostering revolt, and concludes by outlining a new income distribution system that would achieve the extinction of the rentier while promoting sustainable growth. Rentier state article about rentier state by the free. In current politicalscience and internationalrelations theory, a rentier state is a state which derives all or a substantial portion of its national revenues from the rent of indigenous resources to external clients. Rentier state theory rst is a political economy theory that seeks to explain state. Rentierism, far from being saddled with being the sole explanatory tenet for the entirety of the middle eastern political universe, should instead be treated as a trait of gulf politics introduction. Feb 04, 2016 observing the rents accrued by the governments of gulf states, the allure of implementing rentier state theory rst in explaining their politics is easy to comprehend. In short, it remains the conventional and convenient recourse for assessing this regions economic and sociopolitical developments. The origin of the rentier model in the middle east ifri. The other argument which has connected resource wealth, specifically oil, and political institutions, is that of the rentier state. In current politicalscience and internationalrelations theory, a rentier state is a state which. From rentier state to failed state 6 the iraqi state was created in 1920 in the aftermath of world war i.
The rentier state theory has informed much scholarly research on the middle east and north africa mena region. Stateformation in iraq has followed the path of many developing states in its struggle against a major foreign power great britain and the attempt to create a modern state administration and representative institutions. Income measurement in arab states 2 the rentier state in the. The natural history of development theory cambridge core. First, the rentier state theory cannot explain the longrun variation and change in growth of mineral abundant economies eg, botswana, malaysia, venezuela and nigeria. Rentier state theory, therefore, asserts that a populations political loyalty can be commoditized and purchased. Let us return to the topic of natural resources and institutions. The rentier state theory rst has received renewed academic traction in its ability to explicate. A rentier social contract emerges as the creation of artificial employment opportunities and handouts become a means for the government to obtain support and, from this, legitimacy toledo, 20. Economic adjustment and reform in the context of a rentier state bassam fattouh presented at the graduate institute geneva, september 2017 oxford institute for energy studies. This is a fact of paramount importance, cutting across the whole of the social fabric of the economy affecting the role of the state in the society beblawi, 1990, p. An appraisal article pdf available in uluslararasi iliskiler ssci11. Although the central economic factor of an abundant reserve of natural resources remains the constant element around. Aug 26, 2016 examples of rentier states include oil producing countries in the middle east region including saudi arabia, united arab emirates, iraq, iran, kuwait and qatar as well as states such as venezuela and libya in latin america and north africa, all of whom are members of opec.
Defining rents as effortlessly accrued income streams, rentier states can be seen as those whose economies are dependent on substantial external rent for state revenues schwarz. The rentier stateresource curse narrative and the state of the. A theory oflate rentierismin the arab states of the gulf. Oil rents have been central to shaping the political economy of the gulf corporation council gcc countries. The rentier state theory revisited nishad sanzagiri. The term rentier state has been used since the 20th century, in a number of ways. Oil and the rentier state loyola university chicago. Introduction1 the present paper aims to arrive at a set of guidelines that help to study stateformation, state reformation and state deformation processes in the postcolonial states of the arab middle east. This phase is tied to dangers of splitting a fragile rentier state. In a celebrated passage, adam smith distinguished between rent and other sources of income. Centrality of rents and rentier state theory rents have been central to shaping the political economy of the gulf corporation council gcc. State formation in iraq has followed the path of many developing states in its struggle against a major foreign power great britain and the attempt to create a modern state administration and representative institutions. Rentier state theory rst remains the dominant literature on statesociety relations in the arab states of the gulf, yet by focusing on case studies of three ostensibly rentier states, qatar, bahrain, and oman, and their experience during the post2011 period, this dissertation challenges assumptions of rentinduced political stagnation, state autonomy, and poor economic. The rentier state theory rst and its limits the theory of the rentier state started to emerge in the late 1960s, became fully formed in the 1980s, and has since undergone some adjustments.
A main theorist of the rentier state theories argues that in a rentier state, the government is the principal recipient of the external rent in the economy. Economic adjustment and reform in the context of a rentier. Secondly, the variation and change in economic growth in nonmineral rich economies is. Articleblindthe rentier stateresource curse narrative. Part ii illustrates the theory of the rentier state, and in particular, how the rentier system affects the economics of the state and work mentality. Request pdf an essay on the theory of the rentier state this article analyzes one of the most frequently used terms in social science literature namely, rentier state on the axis of. The basic analytical framework for analyzing the impacts of rents remains the rentier state theory rst despite some important refinements to this theory over the years.
In a rentier state, the public institutions alone are rentier. With a young, restless population and crumbling oil revenues, the largest of the gulf monarchies needs investment inflows like this one to shake off its rentier economic system and build a more sustainable model. This evidence heavily implies that the uae qualifies as a rentier state. Centrality of rents and rentier state theory rents have been central to shaping the political economy of the gulf corporation council gcc basic analytical framework remains rentier state theory rst despite some important refinements fiscal independence of state from taxation no accountability.
Oct 11, 20 rentier state theory, therefore, asserts that a populations political loyalty can be commoditized and purchased. Introduction the focus of this study is on the rentier character of state and economy in relation to capital accumulation during the period of 19601997 in iran. Rentier state theory rst, which seeks to explain the impacts. This article shall focus on the political aspects of the resource curse theory, in particular the rentier state theory as a sub theory of the resource curse. Rentier state theory and the arab uprisings uluslararas. In this regard, this thesis will aim to analyze three state theories that target to define the different structures of those states. A theory of late rentierism in the arab states of the gulf. All giga working papers are available online and free of charge on the website. The implications of the rentier state theory regarding the.
One point was earned for identifying nigeria as a rentier state, but no point was earned for describing a problem that a rentier state faces and the impact of that problem on economic development. Examples of rentier states include oil producing countries in the middle east region including saudi arabia, united arab emirates, iraq, iran, kuwait and qatar as well as states such as venezuela and libya in latin america and north africa, all of whom are members of opec. In rentier state theory, the state derives most of its revenue from renting resources such as oil to foreign powers. The response earned no point for the statement that a rentier state is a state in which the government gets help from other nations. Rentier state theory rst is a political economy theory that seeks to explain state society relations in states that generate a large proportion of their income from rents, or externallyderived, unproductivelyearned payments. Economic adjustment and reform in the context of a rentier state. Apr 02, 2018 rentier islamism is a pathbreaking work, brimming with insights on a topic that has remained woefully understudied. Rentier state theory rst gained currency in the late 1980s, and remains. Todays examples of rentier states include gulf nations such as qatar, bahrain, saudi arabia, the united arab emirates, kuwait, and oman, where governments reap massive international revenues rents from oil exportation. Today gulfs oil monarchies, archetypes within the rentier state theory are, in contrast. To facilitate the free flow of ideas and knowledge through publishing the. A theory of late rentierism in the arab states of the gulf 5 the 1990 invasion of kuwait and the subsequent 19901991 gulf war, the sanctions from 1990 to 2003, and the 2003 iraq war and the political and economic problems. In political science and international relations theory, a rentier state is a state which derives all or a substantial portion of its national revenues from the rent of indigenous resources to external clients.
The word rentier usually refers to the social position of the individual who owns lands and earns revenues of its properties without working which means. Mar, 2014 development of rentierism posted on march, 2014 by john dudovskiy rentier state theory is a political economy theory that seeks to explain statesociety relations in states that generate a large proportion of their income from rents, or externallyderived, unproductivelyearned payments gray, 2011, p. Is rentier state theory sufficient to explain the politics of. First, oil revenues are paid to governments in the form of rent. Rentier state theory claims that resource abundance causes weak and predatory state institutions. A person who lives on income from property or investments. Current usage of the term rentier capitalism describes the gaining of rentier income from ownership or control of assets that generate economic rents rather than from capital or labour used for production in a free competitive market. Rentier capitalism is a term currently used to describe the belief in economic practices of monopolization of access to any physical, financial, intellectual, etc.
The first phase of the debate was concerned with oil resources and oil and gasrich states. Observing the rents accrued by the governments of gulf states, the allure of implementing rentier state theory rst in explaining their politics is easy to comprehend. The resource curse thesis claims that oil rents generate economic stagnation, authoritarianism, and heightened vulnerability to civil war. Is rentier state theory sufficient to explain the politics. In economic crisis and political change in north africa. Rentier state an imperialist usurer state that enriches itself by exporting capital to other states, primarily those that are economically underdeveloped and dependent. Center for international and regional studies cirs. The news was primarily featured in the business pages, but the move comes at a critical time for saudi arabia. Rentier states article about rentier states by the free. Rentier definition of rentier by the free dictionary. Since the extraction of oil and its export policy are solely controlled by the national government, all the revenue from oil rent flow into the authoritarian regimes coffer. Rentier state theory rst gained currency in the late 1980s, and remains widely cited or accepted, as an explanation for the lack of democratization and for economic problems in oil and gas producing states of the middle east. French, from rente, yearly income, from old french.
After world war ii 193945 the usa became the main international exploiter and chief rentier state. Stateformation, or alternatively statebuilding, will be understood here as the states ability to accumulate power. Before world war i 191418 the major rentier states were great britain, france, and germany. Over the past decades, theories concerning rentier economies and rentier. A rentier state is defined as a state whose primary function is to distribute revenue derived from the rent of indigenous resources to external clients ross 2001. View rentier state theory research papers on academia. Rentier state theory, arab uprisings, oil and politics, political. The word rentier usually refers to the social position of the individual who owns lands and earns revenues of its properties without working which means without creating value beblawi, 1987, p. Rentier islamism is a pathbreaking work, brimming with insights on a topic that has remained woefully understudied. Rentier state theory and the arab uprisings 77 states were defined through three key characteristics. Before examining the concept of rentier state and main distinctive characteristics of rentier states, to be familiar with what rent and state are separately will be beneficial to clarify the distinctive characteristic of rentier state. The rentier state is a state of parasitic, decaying capitalism v. Two broad categories of claims have been advanced about the rentier state. Water free fulltext a rentier state under blockade.
In a previous post we saw how there has been a debate about whether or not natural resource wealth undermines democracy. Contrarily, the theory of the rentier state largely neglected in the study of peace and war in this respect suggests that regimes use revenue from abundant resources to buy off peace through patronage, largescale distributive policies and effective repression. First, the rentierstate theory cannot explain the longrun variation and change in growth of mineral abundant economies eg, botswana, malaysia, venezuela and nigeria. While this is a book about the muslim brotherhood in the gulf, it is alsoperhaps more subtly but just as powerfullya book about the complex intersection of economics, politics, and religion in superrich states. This article will discuss how the rentier state contributes to the survival of arab absolute monarchies despite the various challenges to their rule.
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