Oil rentier state
Oil presents a horrendous paradox in Nigeria. It provides enormous wealth and means of patronage to the rentier state and its joint venture partners, the transnational oil companies. However, to large sections of the local oil-bearing communities, the commodity is mainly a source of anxiety and misery. oil income enabled the state to encourage the emergence of a dependent modern bourgeoisie alongside the traditional bourgeoisie. Oil revenues also allowed the shah's regime to function independently of domestic productive forces. However, the rentier nature of the state limited the regime's ability to legitimize itself through its economic performance. Rentier state theory is a set of ideas about why states with considerable natural resource wealth appear to have very similar economic and political development trajectories. This article looks more closely at the proposition that oil rentier states have specific features that make them unlikely to become consolidated democracies. Rentier state theory, therefore, asserts that a population’s political loyalty can be commoditized and purchased. Today’s 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, and thus have the financial resources necessary to buy off their citizens.
The theory of the “rentier state” says that countries that receive substantial amounts of oil revenues from the outside world on a regular basis
foreign exchange through borrowing, aid, and oil revenues. To the extent that these revenues undercut the emergence of the institutions and norms necessary for Contrary to the oil-rentier states where rents are by far the most important source for the state budget, political rents and other sources of rent income are Examples of rentier states include oil-producing countries in the MENA region including Saudi Arabia, United Arab Emirates, Iraq, Iran, Kuwait, Qatar, Libya and Algeria as well as a few states in Latin America, all of whom are members of OPEC. Rentier State Rentier state means a country that receives substantial amounts of oil or other types of revenues from the outside world on a regular basis. It is independent from its society, unaccountable to its citizens, and autocratic. The focus of this study is on the “rentier” character of state and economy in relation to capital accumulation during the period of 1960-1997 in Iran. The rentier character and structure of the Iranian State reflects the domination of the economy by the oil sector Oil rentier states are based on a capital-intensive economy4 and the petroleum industry, which largely disassociates the state from the larger economic spectrum.5 With income flowing into the state and less economic vulnerabilities, rentier states are more likely to act unilaterally and develop authoritarianism. “Rentier states” in the Middle East, have for several decades, secured their status-quo by building an overwhelming portion of their economy dedicated to the sale of crude oil. While the rentier system has been successful in propping up Middle Eastern governments for decades, the downside to this system is the economic and political uncertainty created by the rapidly changing value in a single commodity.
Finally, oil revenues (rent) accrue directly to the state or the government. The Arab oil states thus correspond to our definition of rentier states. The role and the
In Table 1, Syria and Yemen are labelled rentier states despite the apparent differences with the oil exporting countries from the Gulf or with Algeria and Iraq. 330. WORLD POLITICS. Claims about the rentier state can be sorted into two categories: those that suggest oil wealth makes states less democratic and those. Oil income increased 25 times from 1970 to 1979. The ambitions of the Saudi state, the all-dominant agent of change during the boom, grew in lockstep. Finally, oil revenues (rent) accrue directly to the state or the government. The Arab oil states thus correspond to our definition of rentier states. The role and the
Rentier state theory is a set of ideas about why states with considerable natural resource wealth appear to have very similar economic and political development trajectories. This article looks more closely at the proposition that oil rentier states have specific features that make them unlikely to become consolidated democracies.
“Rentier states” in the Middle East, have for several decades, secured their status-quo by building an overwhelming portion of their economy dedicated to the sale of crude oil. While the rentier system has been successful in propping up Middle Eastern governments for decades, the downside to this system is the economic and political uncertainty created by the rapidly changing value in a single commodity. Since then, the term “rentier state” has been commonly used in the context of natural resource rich gulf economies.Starting with the first discovery of oil in Middle East (Persia) in May 1908 by William D’Arcy the world continues to rely on Middle East oil even today to keep their economies running. Oil presents a horrendous paradox in Nigeria. It provides enormous wealth and means of patronage to the rentier state and its joint venture partners, the transnational oil companies. However, to large sections of the local oil-bearing communities, the commodity is mainly a source of anxiety and misery. oil income enabled the state to encourage the emergence of a dependent modern bourgeoisie alongside the traditional bourgeoisie. Oil revenues also allowed the shah's regime to function independently of domestic productive forces. However, the rentier nature of the state limited the regime's ability to legitimize itself through its economic performance. Rentier state theory is a set of ideas about why states with considerable natural resource wealth appear to have very similar economic and political development trajectories. This article looks more closely at the proposition that oil rentier states have specific features that make them unlikely to become consolidated democracies. Rentier state theory, therefore, asserts that a population’s political loyalty can be commoditized and purchased. Today’s 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, and thus have the financial resources necessary to buy off their citizens. oil income enabled the state to encourage the emergence of a dependent modern bourgeoisie alongside the traditional bourgeoisie. Oil revenues also allowed the shah's regime to function independently of domestic productive forces. However, the rentier nature of the state limited the regime's ability to legitimize itself through its economic performance.
Finally, oil revenues (rent) accrue directly to the state or the government. The Arab oil states thus correspond to our definition of rentier states. The role and the
oil income enabled the state to encourage the emergence of a dependent modern bourgeoisie alongside the traditional bourgeoisie. Oil revenues also allowed the shah's regime to function independently of domestic productive forces. However, the rentier nature of the state limited the regime's ability to legitimize itself through its economic performance. In political science, the term “rentier state” refers to a state that derives the majority of government revenues from the sale of domestic resources to external clients. Today, the term almost exclusively applies to the world’s major oil-producing states, particularly in the Middle East, Africa and Latin America, which boast massive state-controlled oil and gas reserves and firms to utilize them. The ‘rentier states’ of the Middle East, which derive a substantial part of their revenue from foreign sources in the form of rent, largely oil revenues, face the same basic problem, the challenge of transforming their economies to give increased strength to productive activity and rely on its progress to increase state revenue from domestic sources. tremendous challenge to oil-wealthy Arab nations. In a rentier state, the government collects oil revenues and distributes the pro-ceeds to the population. The population relies on their government for food, shelter, income, and job opportunities. Because the gov-ernment in a rentier state plays the role of benefactor, citizens will Rentier State Theory and the Arab Uprisings 77 states were defined through three key characteristics: First, oil revenues are paid to gov-ernments in the form of rent; this means that the relationship between production price
Rentier state theory is a set of ideas about why states with considerable natural resource wealth appear to have very similar economic and political development trajectories. This article looks more closely at the proposition that oil rentier states have specific features that make them unlikely to become consolidated democracies. Rentier state theory, therefore, asserts that a population’s political loyalty can be commoditized and purchased. Today’s 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, and thus have the financial resources necessary to buy off their citizens. oil income enabled the state to encourage the emergence of a dependent modern bourgeoisie alongside the traditional bourgeoisie. Oil revenues also allowed the shah's regime to function independently of domestic productive forces. However, the rentier nature of the state limited the regime's ability to legitimize itself through its economic performance. In political science, the term “rentier state” refers to a state that derives the majority of government revenues from the sale of domestic resources to external clients. Today, the term almost exclusively applies to the world’s major oil-producing states, particularly in the Middle East, Africa and Latin America, which boast massive state-controlled oil and gas reserves and firms to utilize them. The ‘rentier states’ of the Middle East, which derive a substantial part of their revenue from foreign sources in the form of rent, largely oil revenues, face the same basic problem, the challenge of transforming their economies to give increased strength to productive activity and rely on its progress to increase state revenue from domestic sources.