By Abdulillah
In the past few weeks the terms Rentier State and Innovation (or lack thereof) has been used to describe what maybe happening in the Arab world and specifically Jordan. I having read about Rentier states early in my lifetime and knowing little about how these type states function, I thought it interesting to see if these concepts actually apply to present day Jordan and if this and the lack of innovation actually have a detrimental effect on the democratization of the region and in particular Jordan.
First what is a Rentier state? It is defined by the following statement and characteristics:
“A Rentier state is a political science term or theory used to classify those states which derive all or a substantial portion of their national revenues from the rent of indigenous resources to external clients” and in 1987 according to“ Hazem Beblawi should have these four characteristics that would determine whether or not a state could be identified as rentier:
1. if rent situations predominate
2. if the economy relies on a substantial external rent – and therefore does not require a strong domestic productive sector
3. if only a small proportion of the working population is actually involved in the generation of the rent
4. and, perhaps most importantly, which of the state’s government is the principal recipient of the external rent.“
It is further acknowledged that this theory asserts that states defined by these concepts and characteristics are unlikely to be democratic or cannot be democratic.
Based on the above definition and characteristics it is easy to point directly at the Arab world and say; yes this is what is going on!
Back in 2002 a scholarly paper was written by Michael Herb a Georgia State scholar titled “Does Rentierism Prevent Democracy” about this concept/theory, testing whether states considered to fit the above characteristics (mostly GCC states and some African oil rich states) are actually deterred from democratization. It is a well written scholarly article that tests this theory against established GDP datasets and should be read by every political science major, middle east expert, economist or leader. An exhaustive study that basically concludes/suggests. “that unless we assume that rentier wealth has the same positive effect on democracy as other sorts of wealth, the statistical relationship between rentierism and authoritarianism is weak and perhaps absent”, if not “overstated”.
He continues to state “that we would do well to focus on factors other than oil to explain the democratic deficit in the Arab world, and that we should reevaluate the possible consequences of natural resource wealth.”
Well, if we take this study as a possible guide for us, we should be looking for other reasons as to why the region and specifically Jordan (by the way Jordan has very little natural resources outside of potash and phosphates and was not considered as part of the study, for the lack of democracy in the region, which is debatable as well, since based on the study such wealth has the same effects as other wealth on democratization.
So we turn our heads to the other possible causes bantered about. One such cause is the possible lack of innovation. In a recent article by Dr, Yusuf Mansur of Envision Consulting Group (EnConsult) of Jordan, an expert in economic studies titled “Innovation” recently published by Ammon News caught my eye. A well written scholarly article that contends that Jordan (and possibly the region) may be suffering from lack of innovation,
He states that “Innovation, derived from the Latin word “innovatus” (which means renewal or change), is often confused with invention. The difference, although subtle, should not be lost. Innovation is about creating better or more effective products, processes, technologies or ideas that are accepted by society, governments and markets. Innovation, hence, is about substantial positive change rather than incremental changes or improvements”.
He continues to state “Competitiveness arises not from the endowments or resources of a nation but from a mindset that turns challenges into opportunities. Scarcity, it seems, is the mother of not only invention but also, and more importantly, innovation. Countries that are resource poor (have small landmass and scarce natural resources) but are competitive in terms of the mindset, …Hence, Jordan, which has a small landmass and little in terms of natural resources, is well-endowed to become the next Singapore or Switzerland if the competitiveness mindset takes over in everything it does.”
It appears to me that Dr, Mansour has hit the nail on the head here. He is not blaming or cursing the meager natural resources that Jordan possesses or pushing the theory of renterism as the cause to our possible economic or political problems, but that what we are lacking is innovated thinking in Jordan.
He argues that governmental support of this policy would help tremendously, and I for one fully agree. We have such a high level of young, energetic, educated individuals yearning to do great things in Jordan that have great idea’s bouncing around in their heads. Putting these people together in groups can and hopefully will foster such innovated thinking.
Some ways to do this could be starting with as Dr, Mansur stated “a POLICY”, backed by tangible reform. Maybe we start at the university level, or professional institutes with small endowments to groups that come up with the best ideas, that can be built into the next Micro-Soft, Google, or even as simple as educational tutoring or course studies on-line for degree’s or even trades.
I personally cannot wait to see what ideas that come about from this endeavor. It is sorely needed, and our youth need a leg up and are asking us for help. Look at the streets today.
Maybe we start by hiring Dr. Mansur and some others interested in this area as a consultants to come-up with a policy and then follow it up yearly with reports on its progress. It may look daunting at first glance, but for any trip or endeavor, one must make a first step. Best Regards
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