Martin Beck
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Oil and the political economy in the Middle East
Overcoming rentierism?
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This concluding chapter focuses on two aspects of the Middle Eastern political economy. It initially examines the major consequences of the post-2014 oil price decline and also deals with the oil price crash as triggered by the COVID-19 pandemic. First, migrant workers in the Arab Gulf are the main social losers of policy adjustments. Second, citizens who are predominantly employed in the well-paid public sector were capable of repelling burdensome adjustments. Third, adjustment policies show some of the institutional weaknesses characteristic of rentier states. Fourth, for the three semi-rentier states of Egypt, Jordan, and Lebanon, the expectation that they could profit from the oil price decline in 2014 has not been fulfilled. Beyond major empirical developments, this conclusion also highlights three conceptual dimensions for the theoretical advancement of rentierism. First, it is important to bring state–class relations back into the discussion. Second, the authors stress the importance of institutions during periods of policy adjustment within countries shaped by the inflow of hydrocarbon resources. Third, the authors call for a more nuanced understanding of rentier state autonomy. Based on these discussions, they argue that rentierism still prevails with regard to both empirical dynamics in the Middle East and academic discussions on its political economy.

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Oil and the political economy in the Middle East

Post-2014 adjustment policies of the Arab Gulf and beyond

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