Deep-rooted Maladies of Rentier Societies: Social, Economic, and Urban Fragility
This research aims to critically assess the deep-rooted impact of rentierism on oil-dependent societies, particularly in the Middle East. Rentier economies, shaped by reliance on resource rents, face structural issues that impede economic diversification and foster political and social instability. The research seeks to explore the implications of this system, specifically how the concentration of economic power within a rentier class disrupts societal dynamics and undermines the potential for long-term sustainable development.
At the core of rentierism are its maladies, including a rentier mentality (Beblawi, 1987) that limits productivity and innovation, fostering dependency instead of entrepreneurship. This mentality deepens socioeconomic inequalities, as wealth from resource rents concentrates in the hands of a few, while the majority remains excluded from meaningful economic participation. Additionally, the rentier class exerts disproportionate political influence, weakening governance and prioritizing rent distribution over public goods and services.
By examining the rentier mentality and its effects on labor, entrepreneurship, and innovation, the study intends to highlight the barriers to shifting from a rentier to a productive economy.
In particular, it explores the cultural and institutional elements that must be addressed in order to break the cycle of dependency and foster a more diversified economic landscape.
Additionally, the research will delve into the impact of rentierism on urban development and societal cohesion, exploring how the economic model exacerbates social fragmentation and undermines the resilience of urban environments. The study will also explore economic transition strategies, including investments in non-oil sectors, the promotion of entrepreneurial ecosystems, and the advancement of production-oriented industries, which can facilitate a shift towards a more diversified and sustainable economy.
The goal of this study is to identify reliable approaches for transitioning to more inclusive and innovative economic models, providing insights into how non-oil-dependent societies can mitigate the adverse effects of rentierism and promote a more balanced and diversified future. This research also builds on the works of Luciani (1987), who examines the distinction between allocative and productive states, and Mahdavi (1970), who addresses the challenges of rentier economies, to establish a comprehensive framework for understanding these complex issues.