Rentier state

 

Political Science

A government that derives its revenues predominantly from the sale of valuable resources it owns to clients in other countries. The idea was first proposed by Iranian economist Hossein Mahdavy in 1970. Saudi Arabia’s government, which earns almost all revenue by selling its oil to the rest of the world, is a good example of a rentier state. Some social scientists have argued that rentier states are unlikely to be accountable to their citizens as they are not dependent on tax revenues for their survival. This can lead them to be more tyrannical than other governments.