Essay from the year 2017 in the subject Politics - Region: Near East, Near Orient, grade: 67, School of Oriental and African Studies, University of London, course: State and Transformation in the Middle East, language: English, abstract: The rentier state theory has informed much scholarly research on the Middle East and North Africa (MENA) region. A main theorist of the rentier state theories argues that "in a rentier state, the government is the principal recipient of the external rent in the economy. This is a fact of paramount importance, cutting across the whole of the social fabric of the economy affecting the role of the state in the society" (Beblawi, 1990, p.88). With several countries in the Middle East and North Africa (MENA) region ranking among the rentier states, it is important to consider the term, which has influenced political thinking of the past and the present. This argumentation raises the question of adequacy concerning the notion of the rentier state in analysing political processes in the major oil-producing states of the Middle East. In order to answer this question, this essay is divided into two main parts. In a first section, it will consider the main features that the rentier state theorists have set out and the implications that this theory brings about. In a second step, the main limitations of this theory will be elaborated, as well as some of its benefits will be considered. Close reading of the theories by Hossein Mahdavy (1970), Giacomo Luciani (1987), and Hazem Beblawi (1990), the consideration of critical essays on theories of the rentier state, as well as a glance at countries ranking among rentier states by definition leads to the conclusion that the rentier state theory judges, generalises, and oversimplifies the respective states that rank among the definition of the rentier states. The theory focuses on the economy of a state and how a regime manages this economy, and excludes many elements that are essential to the analysis of the mentioned political processes and is therefore very problematic for this purpose.

Oil has been central to regime survival for oil states across the Arabian Peninsula and has been at the heart of their attempts to defuse the wave of Arab revolutions. However, in 2011 revolution hit Libya, the most oil dependent regime in the Middle East. The political storm winds that have swept this region have thrown into doubt the resilience of Arab rentier states, and highlight how the political effects of oil vary across the oil producing countries. Oil States in the New Middle East brings together leading experts to critically assess the centrality of oil and the relevance of Rentier State Theory in light of the post-2011 upheaval across the Middle East and North Africa. It combines overall reflections on the political dynamics in oil states with focused case investigations of individual countries. Taking as its starting point the centrality of oil in explanations of regime survival, the book analyses how the oil states have responded to and fared throughout the Arab popular upheavals, resulting in a critical assessment of the continued relevance of Rentier State Theory. While observers have asked how the uprisings varied between oil and non-oil states, this book turns the comparative focus inward, arguing for a more fine-grained understanding of the political effects of oil in different oil producing countries. This book would be of interest to students and scholars of Middle East, North Africa and Gulf Studies, Oil and Politics, as well as Comparative Politics and International Political Economy.

This volume, first published in 1987, is devoted to a discussion of interrelations of the economic base with the cultural, social and political structures, and of its impact on the state. 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. This book, Volume Two in the Nation, State and Integration in the Arab World research project carried out by the Istituto Affari Internazionali, examine the issue of the modernization of rentier states’ public finance, which may well entail important modifications in their domestic politics.

The immense economic and political struggles of resource-rich states around the world presented a puzzle to scholars. Rentier state theory argues that relying primarily on external sources of revenue creates significant economic and political problems for resource-rich states. Unfortunately, the theory traditionally does not evaluate the role that the great powers have in creating those problems. Therefore, I created six hypotheses, which reveal the importance of the interactions between the great powers and rentier states. I then found strong support for these hypotheses over four periods of the modern Iranian rentier state. In my conclusion, I argue that, although my case involves an oil-rich Middle Eastern rentier state, there is a preponderance of evidence suggesting that the great powers also impact other rentier states around the world, regardless of their location or source of revenue. Consequently, my findings suggest that rentier state theorists should be more open to evaluating the role of the great powers in the future.

The downhill slide in the global price of crude oil, which started mid-2014, had major repercussions across the Middle East for net oil exporters, as well as importers closely connected to the oil-producing countries from the Gulf. Following the Arab uprisings of 2010 and 2011, the oil price decline represented a second major shock for the region in the early twenty-first century – one that has continued to impose constraints, but also provided opportunities. Offering the first comprehensive analysis of the Middle Eastern political economy in response to the 2014 oil price decline, this book connects oil market dynamics with an understanding of socio-political changes. Inspired by rentierism, the contributors present original studies on Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The studies reveal a large diversity of country-specific policy adjustment strategies: from the migrant workers in the Arab Gulf, who lost out in the post-2014 period but were incapable of repelling burdensome adjustment policies, to Egypt, Jordan, and Lebanon, who have never been able to fulfil the expectation that they could benefit from the 2014 oil price decline. With timely contributions on the COVID-19-induced oil price crash in 2020, this collection signifies that rentierism still prevails with regard to both empirical dynamics in the Middle East and academic discussions on its political economy.

Abstract: This research explores the soundness of the classical rentier state theory in analyzing oil reliant states considering oil price fluctuations and their outcomes on rentier cases. Ever since its discovery, oil has played a major role in shaping rentier economies and their policies. However, oil reliance is regarded to be a double edged sword as the huge inflows of rent could lead to a series of long-term societal and economic risks otherwise dubbed as the "rentier curse". The effects of such curse have been showing over the years in examples such as Venezuela, Saudi Arabia and several other oil reliant states. Nevertheless, not all rentier cases suffer from the same socioeconomic issues or react similarly to international oil price fluctuations. The aforementioned calls for a deeper understanding of such variations as the classic rentier state theory provides static tenets for rentierism as a "one size fits all" labeling mechanism. Although this is useful in understanding the nature of the rent seeking behavior, it is quite simplistic as some rentier states seem to suffer more than others. This has been further exacerbated by the recent and ongoing oil price drop which started in 2014 and already affected the budgets of such states. Although all oil reliant cases incurred massive deficits, some seem to be more capable of weathering the storm while other cases are preparing for drastic economic transformation. A perfect example is the Kingdom of Saudi Arabia which adopted relatively "extreme" fiscal reforms and is in the process of accomplishing the Vision 2030 plan which primarily aims at marginalizing, if not eliminating, the Saudi reliance on rent revenue. Such policies and plans, combined with the inherent fiscal, demographic and socioeconomic differences between rentier states when reacting to oil price shocks not only calls for questioning the current analytical value of the classical rentier state theory, but also calls for a post-rentier labeling for cases similar to Saudi Arabia

Examines the last forty years of Iranian and Middle-Eastern history through the prism of the Green Uprisings of 2009.