Rentier States

Rentier states depend on external sources of income for a large proportion of revenue, as opposed to domestic taxations. Today, the term refers most often to the oil states whose income is derived from the international sale of petroleum . Beblawi's definition of rents is widely followed: rents (1) come from abroad, (2) accrue to the government directly, (3) "only a few are engaged in the generation of this rent (wealth), the majority being only involved in the distribution or utilisation of it" and, (4) 'the government is the principal recipient of the external rent in the economy'. …