Sunday, March 27, 2016

Rentier States

In a rentier state the government relies on substantial external rent in order to sustain the economy and lacks a strong productive domestic center. In the MENA region in many cases, this means that the government of a state will have the money that they make from oil equal to almost their entire percentage of their budget revenue. This alone fosters an environment where citizens of a state aren’t as involved in what happens in their state’s politics because they are contributing to it with their money, hence widening the disconnect between a state and its citizens. the goverentmant is also the primary reciever of the external rent which again creates a major wealth gap between the government, and the people. The majority of the people in the state aren’t directly involved with the money that is being made from oil and are only involved with distributing it or utilizing it, creating more levels of disconnect and also fosters a sense lack of legitimacy in the government.

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