Social and cultural legacies of rentierism

Abstract

This chapter traces the social and cultural effects of rentierism. The MENA possesses the world’s largest reserves of oil and natural gas, and their exploitation since the early twentieth century has not only transformed financial and political institutions but also influenced the social fabric of entire populations, as well. Oil wealth generated a complex, interdependent web of social changes that go beyond instant riches. Oil and gas exporters in the Arab Gulf states attracted millions of foreign workers, who now surpass the citizenry in demographic terms. MENA societies that sent their labor to work in those economies received back their financial remittances; others reaped foreign aid and support. Yet hydrocarbon dependence also distorted notions of citizenship, pushed hyperbolic urban growth, and wasted human capital: in essence, natural resources were not just a harbinger of riches but also a commodifier of social relations. Though they are likely irreversible, recognizing these effects across multiple generations may enable us to extract positive externalities as well.

Keywords Society, Culture, Middle east, Rentierism, Urban growth