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Economics

The Political Economy of Rentier States and Democratic Accountability

Quick fact

The rentier state effect suggests that countries that receive large revenues from oil, gas, or foreign aid—rather than from taxing their citizens—tend to have weaker democratic accountability, because citizens have less leverage to demand government responsiveness when they are not funding the state through taxes.

Why this is interesting

What if a government could raise billions of dollars without asking its citizens for a single penny in taxes? How would that change the relationship between the people and the state?