POLS 2100 Lecture Notes - Lecture 9: Unearned Income
31 Aug 2016
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Document Summary
The difference between the costs of the exploitation and the price paid for a barrel of oil is the profit or rent . Rentier a person living on income from property/ investments, or in this case, oil. Rentier states then, are states that gain a significant amount of its revenue from things like oil or even foreign aid. Oil is a public good owned by the state, revenue is spread, although not equally, through its country. A rentier state does not actively participate in production but it benefits. When prices are high small countries like kuwait can become fabulously wealthy by doing nothing but making their oil available for exploitation. Oil producing states: libya, kuwait, oman, uae, bahrain, qatar. Places that have lots of oil but nothing else making them completely dependent on oil and oil production. Oil industrializers: iraq, iran, algeria, saudi arabia. Export lots of oil but have other revenue too. Middle east nics: turkey, egypt and morocco.
