A look at Rentier states
Summary :
Table of Contents
- Introduction
- Rentier and semi rentier states
- Unsustainable rentierism: The case of Jordan
- Loyalty to the Hashemite monarchy
- The political development of Jordan
- The reason why Jordan made drastic changes
- Bahrain: Oil and foresight
- The al-Khalifa family
- An ideological commitment to the market
- Economic and political reform in Bahrain
- Conclusion
Abstract
When I think of rentier states I am reminded of a time in the early 1970s with Richard Nixon invited Johnny Cash to the White House, provided that the sing the right-wing satire, "Welfare Cadillac." Claiming he did not know the words, Cash instead sang the "Ballad of Ira Hayes," about an American Indian who starved because the government never paid his veteran benefits. This brief anecdote illustrates the attempts President Nixon made (but failed to complete) in undoing Lyndon Johnson's creation of the American welfare state. Significantly-if ironically-it also illustrates the differences between rent and non-rent mentalities. In a rent mentality, the ultimate receivers of the rent do very little to earn their benefits: more importantly the rents buy the loyalty of the beneficiary. Thus, just as Guy Drake's protagonist supports Johnson, a rent beneficiary supports the rent distributor.
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