Rentier States

The issue of rentier states is prevalent in Middle Eastern studies. Rentier states are defined as those that derive a substantial or majority of their income from natural resource export to outside powers. In the Middle East, the vast majority of rentier states are those that rely on oil income. For example, Saudi Arabia has little indigenous resources besides oil. However, the presence of these vast oil reserves has catapulted it to extreme global importance and has transformed it into a wealthy nation with many wealthy individuals in its population. In this regard, being a rentier state helps bridge the disconnect inherent between the state and society in many nations. Many Middle Eastern nations use the income appropriated from rentier-ism to provide subsidies on facets of public life such as education, energy, healthcare, and infrastructure in an attempt to placate the masses and keeping them happy despite fierce restrictions on human rights. In this regard, being a wealthy rentier state helps bridge the gap between the state and the populace inherent in many nations in the MENA region. Having said that, however, this solution is not a sustainable one as oil and natural gas are quickly running out. As future supplies dwindle and global demand increases, these states may encounter difficulty in sustaining this rentier-subsidy based governmental model. Furthermore, the vast majority of the wealth extracted from being a rentier state is appropriated by the wealthier echelon of the population and the government. This creates a large income gap in the respective societies, which may fuel discontent among the masses. The rentier model is neither sustainable nor effective at the overall placation of the public due to increasing income gap and dwindling supplies.