Ren$er&States&and&The&Arab&Spring - Syracuse · PDF fileRen$er&States&and&The&Arab&Spring:&...

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Ren$er States and The Arab Spring: Implica(ons of oil economies on revolu(onary movements in the MENA region Jonathan Polo Interna-onal Rela-ons & Economics 2013 B.A. Candidate Introduction For many years, scholars have asked themselves why the Arab world was one of the only major regions in the en$re world throughout all of modern history where authoritarian regimes have managed to defy global trends to democra$ze. What is the background and founda$on of authoritarian structures’ sustainability that is par$cular to Middle Eastern regimes? With the excep$on of Israel, there is not a single stable democracy in the Middle East. The developmental theory states that there should be a posi$ve correla$on between the level of electoral contesta$on or availability of opposi$on par$es and a country’s rela$ve wealth; Throughout the MENA region although, we find that that is not even close to the truth. In reality there exists some of the largest economies in the world per capita alongside some of the most repressive governments in the world. This theory is one of the strongest and bestcorroborated findings in all of social science yet doesn’t seem to apply to the Arab world. Why is that reality deviates so far from theory? I think that the ren$er state theory could provide some insights into the apparent unassailability of the developmental theory and the MENA region. Hypothesis I argue that, in addi$on to many other factors, the availability of rent revenues primarily hindered the democra$za$on of Arab states throughout history and the propaga$on of insubordina$on during the Arab Spring. Ahead I will outline the mul$ple ways in which oil revenues played and con$nue to take on a pivotal role in sustaining social order in the Arab States. Research Question Why did the Arab Spring succeed in bringing some governmental changes in some countries while not in others and how much, if at all, did the poli$cal environment of ren$er states influence the outcomes? Outcomes of The Arab Spring Arab Spring Outcomes Rela$ve To Oil Revenue Food Prices and Arab Anger Energy Retail Prices in 2010 Energy Subsides Youth Unemployment Methodology Carrot and S*ck Theory: I argue that the governments of several Middle Eastern countries use their revenues from their oil and gas sectors to depoli$cize strategic sectors of society by providing numerous concessions for their cons$tuents to indulge in (carrots). While at the same $me using the engrossing oil revenues to keep popula$ons in order with well funded, all encompassing security and intelligence agencies (s$cks) Data Analysis The Welfare State: Oil revenues have permiXed the crea$on of vast welfare states since the introduc$on of oil extrac$ng technology to Middle Eastern states. According to data by the World Bank, the MENA region has the highest subsidy rates per capita in the world with energy subsidies totaling $280 billion (51%) in 2011. Some countries more than others although are struggling to con$nue paying for these subsides. Egypt in par$cular was readdressing its 35% food subsidy part of its fiscal budget prior to the start of demonstra$ons in Tahrir Square. Similarly, across the region, countries where food and energy prices where rising and governments without large rents to pay for rising subsidy costs saw higher levels of unrest during the Arab Spring. Youth Unemployment: Middle East and North Africa has the highest youth unemployment rate in the world, with about one youth in four without a job (26.5%). Between 1970 and 2010 the popula$on of the region nearly tripled from 128 million to 359 million people. Although ren$er states did not necessarily have an advantage in providing more employment for this increasing amount of youth, who according to the Revolu$onary Theory are more likely to insinuate insubordina$on, only in countries with high youth unemployment and low oil revenues were Arab Spring movements successful in bringing about poli$cal change. Military Expenditure: According to World Bank es$mates the MENA region has been spending a significantly higher percentage of its GDP on its military than has the rest of the world, averaging 5.5% of GDP between 2001 and 2010, compared with the world average of only 2.5%. The highest numbers although interes$ngly coming from the highest oil producers in 2010 with Saudi Arabia accoun$ng for half, at $45.2 billion, the UAE spending $16.1 billion or 17%, while Kuwait spent $4.6bn or 5%. Conclusions Although it is almost impossible to come to the conclusion that some kind of casual factor exists between ren$er states and revolu$onary success or the quelling of popular uprisings there are s$ll several interes$ng correla$ons that are important to highlight. This research provides substan$al evidence in support of the ren$er state theory. But I argue that instead the theory should be relieved of the burden of having to be a comprehensive explana$on for the totality of a system, and instead be used simply to par$ally explain how poli$cs operate, thus gaining much greater u$lity. Of course the success or failure of the Arab Spring was implicated through other important factors like the increased use of social media, the increased demand for human rights and limited corrup$on. But these factors, although, do not make the importance of rents to repressive governments any less crucial to understand.

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Ren$er  States  and  The  Arab  Spring:  Implica(ons  of  oil  economies  on  revolu(onary  movements  in  the  MENA  region    

Jonathan  Polo  Interna-onal  Rela-ons  &  Economics  2013  B.A.  Candidate      

   

Introduction For  many  years,  scholars  have  asked  themselves  why  the  Arab  world  was  one  of  the  only  major  regions  in  the  en$re  world  throughout  all  of  modern  history  where  authoritarian  regimes  have  managed  to  defy  global  trends  to  democra$ze.  What  is  the  background  and  founda$on  of  authoritarian  structures’  sustainability  that  is  par$cular  to  Middle  Eastern  regimes?  With  the  excep$on  of  Israel,  there  is  not  a  single  stable  democracy  in  the  Middle  East.  The  developmental  theory  states  that  there  should  be  a  posi$ve  correla$on  between  the  level  of  electoral  contesta$on  or  availability  of  opposi$on  par$es  and  a  country’s  rela$ve  wealth;  Throughout  the  MENA  region  although,  we  find  that  that  is  not  even  close  to  the  truth.  In  reality  there  exists  some  of  the  largest  economies  in  the  world  per  capita  alongside  some  of  the  most  repressive  governments  in  the  world.  This  theory  is  one  of  the  strongest  and  best-­‐corroborated  findings  in  all  of  social  science  yet  doesn’t  seem  to  apply  to  the  Arab  world.  Why  is  that  reality  deviates  so  far  from  theory?  I  think  that  the  ren$er  state  theory  could  provide  some  insights  into  the  apparent  unassailability  of  the  developmental  theory  and  the  MENA  region.  

Hypothesis I  argue  that,  in  addi$on  to  many  other  factors,  the  availability  of  rent  revenues  primarily  hindered  the  democra$za$on  of  Arab  states  throughout  history  and  the  propaga$on  of  insubordina$on  during  the  Arab  Spring.  Ahead  I  will  outline  the  mul$ple  ways  in  which  oil  revenues  played  and  con$nue  to  take  on  a  pivotal  role  in  sustaining  social  order  in  the  Arab  States.    

Research Question Why  did  the  Arab  Spring  succeed  in  bringing  some  governmental  changes  in  some  countries  while  not  in  others  and  how  much,  if  at  all,  did  the  poli$cal  environment  of  ren$er  states  influence  the  outcomes?    

Outcomes  of  The  Arab  Spring    

Arab  Spring  Outcomes  Rela$ve  To  Oil  Revenue   Food  Prices  and  Arab  Anger  

Energy  Retail  Prices  in  2010  

Energy  Subsides  Youth  Unemployment  

Methodology Carrot  and  S*ck  Theory:  I  argue  that  the  governments  of  several  Middle  Eastern  countries  use  their  revenues  from  their  oil  and  gas  sectors  to  depoli$cize  strategic  sectors  of  society  by  providing  numerous  concessions  for  their  cons$tuents  to  indulge  in  (carrots).  While  at  the  same  $me  using  the  engrossing  oil  revenues  to  keep  popula$ons  in  order  with  well  funded,  all  encompassing  security  and  intelligence  agencies  (s$cks)    

   

Data Analysis The  Welfare  State:  Oil  revenues  have  permiXed  the  crea$on  of  vast  welfare  states  since  the  introduc$on  of  oil  extrac$ng  technology  to  Middle  Eastern  states.  According  to  data  by  the  World  Bank,  the  MENA  region  has  the  highest  subsidy  rates  per  capita  in  the  world  with  energy  subsidies  totaling  $280  billion  (51%)  in  2011.  Some  countries  more  than  others  although  are  struggling  to  con$nue  paying  for  these  subsides.  Egypt  in  par$cular  was  readdressing  its  35%  food  subsidy  part  of  its  fiscal  budget  prior  to  the  start  of  demonstra$ons  in  Tahrir  Square.  Similarly,  across  the  region,  countries  where  food  and  energy  prices  where  rising  and  governments  without  large  rents  to  pay  for  rising  subsidy  costs  saw  higher  levels  of  unrest  during  the  Arab  Spring.  Youth  Unemployment:  Middle  East  and  North  Africa  has  the  highest  youth  unemployment  rate  in  the  world,  with  about  one  youth  in  four  without  a  job  (26.5%).  Between  1970  and  2010  the  popula$on  of  the  region  nearly  tripled  from  128  million  to  359  million  people.  Although  ren$er  states  did  not  necessarily  have  an  advantage  in  providing  more  employment  for  this  increasing  amount  of  youth,  who  according  to  the  Revolu$onary  Theory  are  more  likely  to  insinuate  insubordina$on,  only  in  countries  with  high  youth  unemployment  and  low  oil  revenues  were  Arab  Spring  movements  successful  in  bringing  about  poli$cal  change.    Military  Expenditure:  According  to  World  Bank  es$mates  the  MENA  region  has  been  spending  a  significantly  higher  percentage  of  its  GDP  on  its  military  than  has  the  rest  of  the  world,  averaging  5.5%  of  GDP  between  2001  and  2010,  compared  with  the  world  average  of  only  2.5%.  The  highest  numbers  although  interes$ngly  coming  from  the  highest  oil  producers  in  2010  with  Saudi  Arabia  accoun$ng  for  half,  at  $45.2  billion,  the  UAE  spending  $16.1  billion  or  17%,  while  Kuwait  spent  $4.6bn  or  5%.    

Conclusions Although  it  is  almost  impossible  to  come  to  the  conclusion  that  some  kind  of  casual  factor  exists  between  ren$er  states  and  revolu$onary  success  or  the  quelling  of  popular  uprisings  there  are  s$ll  several  interes$ng  correla$ons  that  are  important  to  highlight.  This  research  provides  substan$al  evidence  in  support  of  the  ren$er  state  theory.  But  I  argue  that  instead  the  theory  should  be  relieved  of  the  burden  of  having  to  be  a  comprehensive  explana$on  for  the  totality  of  a  system,  and  instead  be  used  simply  to  par$ally  explain  how  poli$cs  operate,  thus  gaining  much  greater  u$lity.  Of  course  the  success  or  failure  of  the  Arab  Spring  was  implicated  through  other  important  factors  like  the  increased  use  of  social  media,  the  increased  demand  for  human  rights  and  limited  corrup$on.  But  these  factors,  although,  do  not  make  the  importance  of  rents  to  repressive  governments  any  less  crucial  to  understand.