This thesis investigates discursive trends on the topic of productivity and entrepreneurship in resource-rich Middle East countries (specifically Gulf Cooperation Council states). It provides both...Show moreThis thesis investigates discursive trends on the topic of productivity and entrepreneurship in resource-rich Middle East countries (specifically Gulf Cooperation Council states). It provides both qualitative and quantitative analyses of the existing literature. General findings point to the dominant role that the Rentier State Theory has had in shaping the discourse.Show less
This thesis contributes to the body of literature that attempts to identify the reasons behind the long-standing inability of various Middle Eastern and African states to implement the...Show moreThis thesis contributes to the body of literature that attempts to identify the reasons behind the long-standing inability of various Middle Eastern and African states to implement the international guidelines of sustainable economic development. By integrating the findings of historical sociology, rentier state theory, and political economy within the New Institutional Economics framework, it opens a path towards explaining the relative resilience of some developing autocratic regimes to social change and consolidation of impersonal markets. For this purpose, the Kingdom of Saudi Arabia has been selected for a case study as, more clearly than others, it demonstrates the remarkable ways in which traditional social norms can be appropriated by the leadership and constrain institutional development. At the center of the historical narrative, the work puts the concept of patrimonialism as an informal system of embedded customary rules that fundamentally enhanced the chances for survival of the pre-state Arabian communities. In order to assess the extent to which it shaped the subsequent evolution of institutional matrix and its particular societal incentives until the most recent form, the author traces its institutional, organizational, and economic manifestations over a century of state building process from its tribal origins. Based on the analysis of historical sources it firstly argues that the centralized hierarchic distribution has characterized the social organization long before the discovery of oil, though it heavily depended on secondary elites due to the material shortage at that time. While the oil-related fiscal surpluses enabled expansion of the allocation state and diminished the influence of elites on policymaking, the pre-state governance structures were instrumentalized for personal interests of the autocratic ruler and gradually emerged as the cornerstone of modern institutional environment. This allowed for neopatrimonial strategies of co-option and domination that helped to enlarge the social hierarchy during the fiscal surplus and sustain it over crises. Accordingly, the following process tracing analysis demonstrates this correlation by analyzing the significant legislative decisions and personnel shifts of the Council of Ministers between 1953-2018, and compares them to the macroeconomic developments. Although there are occasional disruptions caused by exceptional external or internal events on one side and, increasingly, authoritarian learning on the other, an apparent pro-cyclical pattern stands out throughout the study, in which the weakness of distributional networks leads to greater institutional and organizational concessions that in turn facilitate decentralization and socio-economic development. Thereby, the author urges for an alternative approach to economic reforms in the Gulf, pointing out the significance of institutional reform for an actual change towards an effective, market-based and sustainable development, and warning from socio-economic impacts of further centralization.Show less
Due to China’s growing industry and their corresponding growing energy requirements in the last couple of decades, the country has reevaluated its foreign policy for the Middle East to secure its...Show moreDue to China’s growing industry and their corresponding growing energy requirements in the last couple of decades, the country has reevaluated its foreign policy for the Middle East to secure its supply of energy. A key factor in the achievement of this goal has been the improvement of relations with oil exporting countries in the Middle East such as Saudi Arabia and Iran. This research analyzes how China has developed relations with the two major rivalling states in the Middle East and what explains the viability of an imbalanced system that is the triangular relation between China, Saudi Arabia, and Iran.Show less
Oil-induced revenues that are directly accrued to states, or rents, are one of the foundations for many states in the Middle East, Africa, and elsewhere in the world. In exchange for political...Show moreOil-induced revenues that are directly accrued to states, or rents, are one of the foundations for many states in the Middle East, Africa, and elsewhere in the world. In exchange for political inactivity, these so-called rentier states redistribute a fraction of this oil wealth in the form of healthcare, education, salaries and other benefits. However, with oil gradually running out, the social contract that bases itself on this rentier principle is facing a potential end-scenario. In this thesis, I will be addressing this dilemma, by asking the following question: To what extent does a relationship exist between oil depletion and change in the rentier social contract? Focussing specifically on Saudi Arabia, I will deconstruct the Saudi social contract, and compare a quantified version of this contract with the process of oil depletion, in order to find whether such a relationship exists. The study will show that even though the exact form of this relationship remains subject to discussion, it clearly exists. In conclusion, this means that scholars should redirect their focus to the political implications of oil depletion.Show less
As the militarily most powerful and economically most developed riparian, Egypt occupied the position of the Nile’s hydro-hegemon for centuries. The appearance of China, a new influential actor,...Show moreAs the militarily most powerful and economically most developed riparian, Egypt occupied the position of the Nile’s hydro-hegemon for centuries. The appearance of China, a new influential actor, previously unconnected to the region, however, has significantly impacted the Nile River Basin’s historic power balance. China’s emergence as a financier and contractor of hydro-infrastructure in the Upper Nile basin has provided upstream riparians with unprecedented leverage. Chinese engagement in the hydro-politics on the Upper Nile undermines Egypt’s established hydro-hegemony, as it equips upstream states with viable powers to contest the status quo for the first time in history. Additionally, Beijing’s involvement alters the individual riparians’ approaches towards the hydro-conflict. Whereas certain upstream states seem encouraged by Chinese backing to pursue an increasingly unilateral agenda, Beijing’s presence might contribute to a basin-wide hegemon-led multilateral initiative. Surprisingly, despite China’s role in the hydro-political conflict, its relations with Egypt have not been impacted significantly.Show less
The thesis explores the linkage between economic policies and quality of governance in the Middle East. Through an Econometric model and further theoretical research it ask why some countries have...Show moreThe thesis explores the linkage between economic policies and quality of governance in the Middle East. Through an Econometric model and further theoretical research it ask why some countries have a high rate of "open" economic practices, but with severe "closed" political systems. It concludes that based on the rapid development of these Oil States, they spend relatively little time in a state of development where regimes are unstable and likely to fall, instead shooting towards the stable, high, GNI per capita they currently have.Show less
