A rentier is a person who derives a subsistence level or greater level of income from economic rent instead of working. To meet Wikipedias quality standards, this article or section may require cleanup. ...
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The short answer, according to Yates (1), is that a rentier state and rentier economy lead to a rentier mentality, which dooms a country’s economy and long-term prospects.
Beblawi and Luciani preferred the term “rentier economy” to rentier state, suggesting that the rentier state is really a subset of a rentier economy, and that the nature of the state is best examined primarily through its size relative to that economy and the sources and structures of its income.
The economic behavior of a rentier is distinguished from conventional economic behavior ‘in that it embodies a break in the work-reward causation.’” (Yates, p.
A rentier state is a term in political science and international relations theory used to classify states who derive all or a substantial portion of their national revenues from the rent of indigenous resources to external clients.
The term is most frequently applied to states rich in highly valued natural resources such as petroleum, however it could be applied to nations who trade on their strategic resources (such as permitting the development of an important military base in their territory) as well.
While many states export resources or license their development by foreign parties, rentier states are characterized by the relative absence of revenue from domestic taxation, as their naturally-occurring wealth precludes the need to extract income from their citizenry.
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