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What is a rentier state?

Question #99050. Asked by author.
Last updated Jun 09 2021.

Buddy1
Answer has 5 votes
Buddy1
18 year member
146 replies

Answer has 5 votes.
A rentier is someone depending on income that is derived from rates. It is also a theory that classifies states which gets most of its revenue from rent.

link https://en.wikipedia.org/wiki/Rentier_state

Aug 31 2008, 8:27 AM
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zbeckabee star
Answer has 14 votes
Currently Best Answer
zbeckabee star
Moderator
18 year member
11752 replies avatar

Answer has 14 votes.

Currently voted the best answer.
The theory of the “rentier state” says that countries that receive substantial amounts of oil revenues from the outside world on a regular basis tend to become autonomous from their societies, unaccountable to their citizens, and autocratic. The theory is used to help explain why Iran, the Gulf States, many African states ( Nigeria, Gabon) and other countries (e.g., Netherlands) with abundant resource wealth perform less well than their resource-poor counterparts. How does this happen, according to the rentier state theory? The short answer, according to Yates, is that a rentier state and rentier economy lead to a rentier mentality, which dooms a country’s economy and long-term prospects.

link https://www.ukessays.com/essays/economics/rentier-state-rents.php

a rentier state is the one, “where rent situation predominates”.
He divides rent into two as internal rent and external rent. Then, he says that to define a state (or economy) as rentier, the externality of the rent is important. In a way his explanation is fair. Externality of rent would have different repercussions than internality. If the rent is external, state economy is dependent on the resources coming from outside. While a small group of people in the society generating the rent, the majority involved in distribution and utilization of it. Lastly, the rent should be obtained by the government to call it as the rentier economy. This makes government to act independently and lose the basis of the necessities of a democracy.

link http://whynationsfail.com/blog/2013/6/25/natural-resources-and-political-institutions-the-rentier-sta.html

Response last updated by satguru on Jun 09 2021.
Aug 31 2008, 8:37 AM
author
Answer has 5 votes
author
22 year member
2834 replies

Answer has 5 votes.
Indeed, yes.

Quote:
The emergence of the new oil states and their increasing importance in world trade in the 1970s brought a renewed interest in thinking on rentier economies in the aforementioned disciplines of political science and international relations.[3] 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.[4] [5] Rentier state theory has been one of several advanced to explain the predominance of authoritarian regimes in the Middle East and the apparent lack of success of democracy in the region.[6] While many states export resources or license their development by foreign parties, rentier states are characterized by the relative absence of revenue from domestic taxation, as their naturally occurring wealth precludes the need to extract income from their citizenry.

link https://en.wikipedia.org/wiki/Rentier_state

Aug 31 2008, 5:31 PM
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