POLS 2100 Lecture Notes - Lecture 5: Unearned Income, Qatar, World Oil Market Chronology From 2003
9 Nov 2016
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Middle east possesses about 2/3rd"s of the world"s oil. Russia produces most of the world"s oil. It is very expensive to produce oil, but there is usually huge pro ts on it, this pro t is called rent. Rent: payments made periodically for the use of land or accommodation or for equipment. *accumulated on a per barrel basis (produce millions of barrels a day) A rentier is a person who makes a living from property or investments. If you don"t produce oil you need a growing and productive economy to make money. In iran, oil is a public good, revenue from it"s sale is spread throughout society. Rentier states don"t need to invest in productive processes but they still bene t from the fruit of that product: revenue is un-earned income. Oil producing states: libya, kuwait, oman, united arab emirates, bahrain and quatar. *will probably always be dependent on oil production for their livelihood.
