Comparative Government 2.4 Introduction to Comparative Politics

Today's Shmoop du jour is about rentier states. We're pretty sure that refers to the mood you're in before you sign an apartment lease, but we'll check out this video, just to be safe.

APAP Comparative Government
LanguageEnglish Language

Transcript

00:26

renter which is actually a great way of looking at it. In a way the two are

00:30

similar but rent can be a funny word kinda like borrow if we say can I borrow [Teacher delivering a lesson]

00:35

some gum we really mean can I have some gum with no give backsies. We may not

00:41

mean exactly what we say but we still get the point across there right? [Baby crying gets his bottle]

00:44

Now let's think of a rentier state as a landlord of sorts, imagine renting a place

00:48

in the biggest little sota state in the world Minnesota. Chances are good that the [Minnesota has a sign put in it]

00:52

landlord is doing business with an out-of-state renter well let's really

00:56

use our imaginations and say that people from all over the country come to rent [Cars driving from across the U.S. into Minnesota]

00:59

in Minnesota because it's the next big apple. The landlord in this example is

01:04

heavily relying on people from foreign or external clients, a rentier state

01:09

generates most of its government revenue by renting the use of its natural

01:12

resources to foreign nations or companies. Keep in mind its government [Rentier government selling jerry cans of fuel]

01:16

revenue civilians incomes don't count. Which is where the misuse of the word

01:20

rent comes in, renting natural resources is like asking to borrow a tank of gas

01:25

claiming you'll give it right back when you're done so let's look over these [Client taking some fuel]

01:29

answer choices and see which state relies on renting out its natural

01:32

resources. Well Russia and Mexico both have advanced economies based mostly on

01:37

manufacturing and services, which is a far cry from having to rent out natural [Workers on a production line]

01:42

resources so cross out C and E. Great Britain exports a number of

01:46

natural resources but we're only talking about one branch of the UK's highly

01:49

advanced economy A is definitely not our answer. Now what's the key component that [People holding a key]

01:54

defines a rentier state, channel that inner Jimmy Neutron... Oh yeah it's right [Jimmy Neutron's head explodes]

02:00

in the name a rentier state's government generates most of its revenue by renting

02:05

the use of its natural resources. Which means Iran can't work because most of

02:09

its oil fields are publicly owned and operated so [Nodding donkey oil pump]

02:13

Iran's government actually runs the biz rather than renting out its facilities [Iran government man wearing shades]

02:16

which leaves us with D. Nigeria is a rentier state, its economy relies on renting

02:22

oil reserves to foreign countries and businesses especially Royal Dutch Shell. [Nigeria handing oil over to the U.S.]

02:27

A rentier states government is afraid to commit to a relationship though it

02:31

only rents out its use of natural resources. Don't get your hopes up there

02:35

shell Nigeria could start swooning over a prettier oil company at any moment. [Nigeria runs away from Shell with Sunoco]