A rentier state is heavily reliant on the rents and profits derived from the rent generated from outside actors in return for access to the state’s natural resources. In a renteir state, only a small amount of the population is involved in the generation of wealth from the rents. The majority of the population is involved in the distribution. The government of a renteir state benefits the most from the system, as it is the main recipient of the wealth from the rents. The Middle East, specifically the oil rich Gulf Nations, are perfect examples of renteir states. These nations are extremely dependent on revenue generated from the oil that exists within their borders. According to Forbes, In Saudi Arabia “the petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings.” One of the main problems with renterir states is their lack of legitimacy with their people. In most renteir states, the citizens pay virtually no taxes. Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates collect no taxes on their citizens. Since oil is plentiful in these nations, taxation is seen as an alternative and unneeded source of income. A government that relies on a taxed citizenry to function provides the people with leverage over the government. Citizen tax payers can use this leverage in order to extract concessions from the state, specifically greater political participation. Without this leverage, the government has no incentive to allow for representation. This is why governments in the Middle East and North Africa are typically weak. The state refuses to represent the people so the people feel no allegiance to the state. This failure in creating a functioning citizen state relationship explains the numerous internal conflicts occurring across the region. There are ongoing armed conflicts in Iraq, Syria, Turkey, Libya, and in Yemen. Almost all are civil wars. These conflicts show that there is a widening gap between the people and their government.
Saturday, April 23, 2016
Rentier States and Legitimacy
A rentier state is heavily reliant on the rents and profits derived from the rent generated from outside actors in return for access to the state’s natural resources. In a renteir state, only a small amount of the population is involved in the generation of wealth from the rents. The majority of the population is involved in the distribution. The government of a renteir state benefits the most from the system, as it is the main recipient of the wealth from the rents. The Middle East, specifically the oil rich Gulf Nations, are perfect examples of renteir states. These nations are extremely dependent on revenue generated from the oil that exists within their borders. According to Forbes, In Saudi Arabia “the petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings.” One of the main problems with renterir states is their lack of legitimacy with their people. In most renteir states, the citizens pay virtually no taxes. Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates collect no taxes on their citizens. Since oil is plentiful in these nations, taxation is seen as an alternative and unneeded source of income. A government that relies on a taxed citizenry to function provides the people with leverage over the government. Citizen tax payers can use this leverage in order to extract concessions from the state, specifically greater political participation. Without this leverage, the government has no incentive to allow for representation. This is why governments in the Middle East and North Africa are typically weak. The state refuses to represent the people so the people feel no allegiance to the state. This failure in creating a functioning citizen state relationship explains the numerous internal conflicts occurring across the region. There are ongoing armed conflicts in Iraq, Syria, Turkey, Libya, and in Yemen. Almost all are civil wars. These conflicts show that there is a widening gap between the people and their government.
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I think it is a good point and analysis that MENA states may be "weak" in mind because they are also usually rentier states. The lack of governmental allegiance also can lead to lack of national identity, which is another reason some uprisings have happened.
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