Why does the rentier curse represent such a challenge to development and political progress in the Middle East?
Economic and political development are both intrinsically linked in rentier states in the Middle East. Economic development is difficult also as large public sectors and weak private sectors limit the opportunity for the growth of new industries to emerge that enable states to be uncoupled from resource rents.
Why is a rentier state bad?
The unequal distribution of external income in rentier states has thus a negative effect on political liberalism and economic development. With virtually no taxes citizens are less demanding and politically engaged and the income from rents negates the need for economic development.
What is meant by the term resource curse?
The resource curse (also known as the paradox of plenty) refers to the failure of many resource-rich countries to benefit fully from their natural resource wealth, and for governments in these countries to respond effectively to public welfare needs.
What is rentier state theory?
In current 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 paid by foreign individuals, concerns or governments.
What is a rentier state ap comp gov?
Rentier state. a country that obtains a hefty income by exporting raw materials or leasing out natural resources to foreign companies.
What is the rentier state theory?
What is a rentier state AP Gov?
What is the repression effect?
The author also tests three explanations for this pattern: a “rentier effect,” which suggests that resource-rich governments use low tax rates and patronage to dampen democratic pressures; a “repression effect,” which holds that resource wealth enables governments to strengthen their internal security forces and hence …
What causes resource curse?
The resource curse mainly occurs when a country begins to focus all of its production means on a single industry, such as mining or oil production, and neglects investment in other major sectors. At times, the resource curse can also result from government corruption.
What is the definition of rentier state theory?
Rentier state theory 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 externally-derived, unproductively-earned payments” (Gray, 2011, p.1). In simple terms, rentier states derive substantial proportions…
How does a rentier economy differ from a productive economy?
In such an economy rents would only be a part of the total income, while in rentier economies rents take up a substantial part. Rentier states thus rely on external rents and not on the productivity of the domestic sector. This creates a rentier economy which influences multiple aspects of a state’s society.
How does a rentier state affect political development?
They show that rentier states receive income without an increase in the productivity of the domestic economy or political development of the state, that is the ability to tax citizens. The unequal distribution of external income in rentier states has thus a negative effect on political liberalism and economic development.
When did the development of rentierism begin and end?
Development of rentierism and rentier state theory into academic and practical levels can be divided into the following three phases: classical rentier state theory, the second phase of rientierism and late rientierism. The first phase of rentierism encompasses the period from the beginning of 1980’s and to the early 1990’s.