Oil and developing obstacles

Rent, unlike interest and profit which are the results of economic activity, is acquired without any endeavor. A rentier state gains more than 42 percent of its incomes from the foreign rents, it is the main recipient and as the result main spender of the rent incomes. In these states incomes do not have any relations with the production procedures in domestic economy of the states, the majority of the people are recipients of the rents and some of them are distributors of rents and only few people are engaged in the production procedures. Politically, oil rents cause the separation between the government and people and this makes the supremacy of the government over the society because the state revenue does no gain from the taxes. As the result of this process, state becomes independent from the social classes, and they become subordinate to the government. Economically, oil rents can result in decrease of work motives, weakening private sector, developing the culture of using the rents, consumptionism and destruction of economic resources. Unlike the most states which should receive taxes from society and industries, the rentier states because of using the incomes of rents do not need to taxes and as a result to civil society, because of that in rentier states we can not witness the ideal developed society so the developing policies mostly face with many obstacles. As the experiences of the states have been proved the oil-based development would fail. Explaining the different dimensions of socio-political and economic situations of rentier states, in this article the failure of oil-based developing process will examine as the sensible example of rentier states.