POLS 2100 Lecture 6: POLS2100 Feb 10
16 Feb 2017
School
Department
Course
Professor
Document Summary
Pols2100 feb 10 barrel of oil is the profit or, more accurately, rent. The difference between the costs of exploitation and the price paid for a (cid:498)rentier states(cid:499) Rents are (cid:498)payments made periodically for the use of land or accommodation or for equipment (cid:499) Has facilitated enormous economic expansion (high selling price combined with cost to produce it, allows gvt to either fund economic expansion or just keep themselves afloat) When the price of oil is low it costs countries more money to pump oil to the surface than they make in profit. A rentier is a person living on an income from property investments, ect. A rentier state is one that derives a significant percentage of its revenue from external economic rent which can include things like oil but also foreign aid. Can be anything, can be diamonds, can be foreign aid if you get substantial foreign aid.
