Rentier state

From ACT Wiki
Revision as of 13:28, 14 May 2014 by Doug Williamson (Talk | contribs) (NEW ENTRY - Created as response to TT May 2014 article -

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

A term coined by Hossein Mahdavy in 1970. This theory defines rentier states as those countries that receive on a regular basis substantial amounts of their national revenue from the rental of indigenous resources to external clients.

An example of this type of rental is the payment for passage of ships through the Suez Canal.

This term can also be applied to states which trade in valuable natural resources such as oil, or financial instruments such as reserve currency or strategic resources such as military bases.