Rentierism

The damage that oil rents have done to political and social outcomes in the Middle East and North Africa region are due to the interaction of these rents with post colonial nations that had weak institutions, limited participation in government, inability to evenly distribute the wealth from those rents, and government corruption. All of of these factors combined with oil rents can be attributed to the harm that has been done to the social and political facets of the MENA region. In the Ross article he states that “only a few are engaged in the generation of this rent the majority being only involved in the distribution or utilization of it” (Ross, p. 329). States also often control the revenue from their rents, much of which is failed to be invested back into programs that benefit the masses. There is also the “spending effect” in which it is common for governments to invest in patronage which innately reduces the push for democratization. Ammeter attributing factor is the divide among the rich and the poor that can be seen throughout the MENA region and is a main contributor to a disparity in wealth between those that are directly involved in the oil industry and those that work and contribute to the industry but ┬ádo not receive the same reimbursement as those that own it. There is also a large investment into the military within the MENA region with the money earned from oil rents, this in turn leads to a more oppressive regimes and a stronger oppositions to democratization pushes from the population. Another reason for the damage done to the social and political facets of the MENA region is the mismanagement of funds from oil rents among political leaders. With this many of the investments that could be made to better the people of the MENA region never occur or occur at in very small increments. There is also the widespread corruption among the privatized oil sector due to the weak institutions in many MENA region nations. These are a few factors that when combined with oil rents hurt the development of the social and political facets of nations within the MENA region.