Sustainability of Public Finance of Rentier States

2020 ◽  
pp. 88-113
Author(s):  
Lukman Raimi ◽  
Abdussalam Aljadani
Keyword(s):  
Public Finance ◽  
Saudi Arabia ◽  
Value Added ◽  
Rentier State ◽  
Economic Diversification ◽  
Industrial Services ◽  
The Public ◽  
Sustainability Strategies ◽  
Political Commitments ◽  
Rentier States

Embedding this discourse on rentier state theory (RST), this chapter discusses the quest for sustainability of the public finance system of Nigeria and Saudi Arabia. The inability of these rentier states to meet their economic, social, and political commitments led to the adoption of value-added tax (VAT) and economic diversification as sustainability strategies. The findings from the macroeconomic data indicated that Nigeria and Saudi Arabia have large markets that provide opportunities for the introduction of VAT. These two countries also have huge deposits of natural resources, including oil, which could be developed for accelerating economic diversification. This chapter validates the appropriateness of VAT and post-rentier economic diversification as sound policies for industrial, services, tax, and tourism development. The findings from this chapter need to be strengthened with a more rigorous empirical investigation. The chapter concludes with far-reaching policy suggestions.

scholarly journals Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model

2019 ◽  
Vol 11 (3) ◽  
pp. 911 ◽  
Author(s):  
Abdullah Kaya ◽  
Evren Tok ◽  
Muammer Koc ◽  
Toufic Mezher ◽  
I-Tsung Tsai
Keyword(s):  
Theoretical Model ◽  
Global Economy ◽  
Oil And Gas ◽  
Economic Value ◽  
Optimal Level ◽  
Domestic Economy ◽  
Rentier State ◽  
Economic Diversification ◽  
The Status ◽  
Rentier States

This paper develops a theoretical model to analyze whether a rentier state can diversify its economy away from the rent revenue and hence sustain the economic development and preserve the status-quo. Considering the decarbonization process of the global economy and rapidly fall in economic value of hydrocarbons in the face of the supply glut, rentier states depending on oil and gas revenues urgently need to diversify their economies to avoid social backlash and political upheaval. There are three intertwining factors that determine an effective economic diversification away from the rent revenue: The profitability of non-rentier sectors, the size of the domestic economy to induce a “Big Push” for industrialization to non-rentier sectors, and the level of economic inclusivity. For an optimal level of economic diversification in a rentier state: (1) Non-rentier sectors should be attractive to private agents without the entry barriers; (2) domestic economy should be large enough to induce investment into non-rentier sectors; (3) the ruler(s) should have sufficient tolerance (inclusivity) for private agents investing into non-rentier sectors. Our findings indicate that a rentier state can achieve an optimal level of economic diversification provided that the conditions above are met even without any political change.

Novations in Budgetary Process: Budgeting Focused on Result

2005 ◽  
pp. 4-22
Author(s):  
V. Gamukin
Keyword(s):  
Public Finance ◽  
New Method ◽  
Budgetary Process ◽  
Commercial Sector ◽  
The Public ◽  
Starting Condition ◽  
Domestic Practice

In the article the starting condition of applicating the new method of organization of the budgetary process - the budgeting focused on result is estimated. The importance of specification of the conceptual and methodical device of budgeting with reference to the public finance is underlined. It is conditioned by the fact that rich foreign and domestic practice of budgeting in commercial sector cannot be directly used for optimization of a trajectory of movement of state and municipal finances.

Modernization of the Public Finance in Russia

2006 ◽  
pp. 103-111 ◽  
Author(s):  
Mst. Afanasiev ◽  
I. Krivogov
Keyword(s):  
Public Finance ◽  
The Public ◽  
Budget Reform

Russian public finance reforming under conditions of substantial increase of budget expenditures is analyzed in the article. Basic directions of the budget reform are considered that are formulated in the variant of the Budget Code, which is currently still under discussion. The focus is made on results-based budgeting and federal investment programs management.

Public finance flow in contemporary Russia

2020 ◽  
Vol 26 (11) ◽  
pp. 2501-2523
Author(s):  
V.V. Smirnov
Keyword(s):  
Neural Network ◽  
Public Finance ◽  
Systems Approach ◽  
Management Decisions ◽  
Public Authorities ◽  
Cluster Analyses ◽  
The Public ◽  
National Wealth ◽  
Economic Formation

Subject. This article discusses the issues related to public finance. Objectives. The article aims to identify the determinants, indicators, and priorities of the public finance flow in contemporary Russia. Methods. For the study, I used the methods of statistical, neural network, and cluster analyses, and the systems approach. Results. The article identifies and describes the determining indicators of the main aggregates and balances of public finance, sources, and the use of funds. It establishes a link between the main aggregates and balances of public finance, defining the form and content of Russian capitalism. Conclusions. Understanding the issue and problem of public finance flow in contemporary Russia helps identify the reasons for the inability to transit to a capitalist socio-economic formation. The provisions of the study expand the scope of knowledge and develop the competence of public authorities to make management decisions on the distribution and redistribution of the value of a public product and part of the national wealth.

Towards a Customized¬ Awareness Campaign to Educate the Public about COVID-19: Development and Validation of a Messaging Campaign to Promote Precautionary Behavior Using Geospatial Intelligence in Saudi Arabia (Preprint)

2020 ◽  
Author(s):  
Mayda Alrige ◽  
Hind Bitar Bitar ◽  
Maram Meccawi ◽  
Balakrishnan Mullachery
Keyword(s):  
Artificial Intelligence ◽  
Saudi Arabia ◽  
Content Validity ◽  
Awareness Campaign ◽  
Artificial Intelligence Technique ◽  
The Public ◽  
High Infection ◽  
Local Map ◽  
The City ◽  
Intelligence Technique

BACKGROUND Designing a health promotion campaign is never an easy task, especially during a pandemic of a highly infectious disease, such as Covid-19. In Saudi Arabia, many attempts have been made toward raising the public awareness about Covid-19 infection-level and its precautionary health measures that have to be taken. Although this is useful, most of the health information delivered through the national dashboard and the awareness campaign are very generic and not necessarily make the impact we like to see on individuals’ behavior. OBJECTIVE The objective of this study is to build and validate a customized awareness campaign to promote precautionary health behavior during the COVID-19 pandemic. The customization is realized by utilizing a geospatial artificial intelligence technique called Space-Time Cube (STC) technique. METHODS This research has been conducted in two sequential phases. In the first phase, an initial library of thirty-two messages was developed and validated to promote precautionary messages during the COVID-19 pandemic. This phase was guided by the Fogg Behavior Model (FBM) for behavior change. In phase 2, we applied STC as a Geospatial Artificial Intelligence technique to create a local map for one city representing three different profiles for the city districts. The model was built using COVID-19 clinical data. RESULTS Thirty-two messages were developed based on resources from the World Health Organization and the Ministry of Health in Saudi Arabia. The enumerated content validity of the messages was established through the utilization of Content Validity Index (CVI). Thirty-two messages were found to have acceptable content validity (I-CVI=.87). The geospatial intelligence technique that we used showed three profiles for the districts of Jeddah city: one for high infection, another for moderate infection, and the third for low infection. Combining the results from the first and second phases, a customized awareness campaign was created. This awareness campaign would be used to educate the public regarding the precautionary health behaviors that should be taken, and hence help in reducing the number of positive cases in the city of Jeddah. CONCLUSIONS This research delineates the two main phases to developing a health awareness messaging campaign. The messaging campaign, grounded in FBM, was customized by utilizing Geospatial Artificial Intelligence to create a local map with three district profiles: high-infection, moderate-infection, and low-infection. Locals of each district will be targeted by the campaign based on the level of infection in their district as well as other shared characteristics. Customizing health messages is very prominent in health communication research. This research provides a legitimate approach to customize health messages during the pandemic of COVID-19.

Has the Sovereign Wealth Fund of Azerbaijan (SOFAZ) Been Able to Promote Economic Diversification?

2013 ◽  
Author(s):  
Vahid Yücesoy
Keyword(s):  
Fossil Fuels ◽  
Dutch Disease ◽  
Future Generations ◽  
Direct Control ◽  
Economic Diversification ◽  
Sovereign Wealth Funds ◽  
Sovereign Wealth Fund ◽  
Rentier States ◽  
Oil Revenues ◽  
Rich Countries

Oil-rich countries have oftentimes been confronted with the challenge of diversifying their economies away from oil dependence given the exhaustible nature of these fossil fuels. Investing in sovereign wealth funds has been one of the most ubiquitous ways of preparing for the post-oil period. Investing in sovereign wealth funds rather than directly injecting the oil revenues in the economy not only precludes the outbreak of the Dutch Disease (which is known for giving rise to an exchange rate appreciation, crowding out non-oil industries and keeping the economy reliant on oil), but it also saves for future generations. Yet, in the case of Azerbaijan, the Sovereign Wealth Fund of Azerbaijan (SOFAZ), founded in 1999, has only increased this reliance on oil. Using the rentier states theoretical framework, this paper will argue that the direct control over SOFAZ exercised by the president and the lack of consultation with the NGOs have made corruption easier, making the task of economic diversification more difficult. This has been possible because through corruption the president has often resorted to oil money to buy peace rather than invest it in economic diversification. As a result, since the foundation of SOFAZ, the country is more reliant, not less, on oil.   Full text available at: https://doi.org/10.22215/rera.v8i1.223  

Systems of Governance and Politics of Opposition in the Super-Rentiers

2018 ◽  
Author(s):  
Courtney Freer
Keyword(s):  
Civil Society ◽  
Political Life ◽  
Political Environment ◽  
Popular Politics ◽  
Rentier State ◽  
Critical Information ◽  
Independent States ◽  
The Government ◽  
Legal Frameworks ◽  
Rentier States

This chapter provides a critical background on the country cases by examining their brief political histories as independent states. It also gives critical information about the legal frameworks of such states to highlight where and how Islamist groups can act in these states. By providing such descriptions, this chapter demonstrates the extent to which these states, in regime or popular politics, either adhere or fail to adhere to the government type and political environment normally associated with the rentier state. The chapter also reveals critical commonalities among the super-rentier states—they are governed by powerful ruling families; institutionalized political life is hampered; and civil society and political life remain largely informal—while also indicating their differences, which arose in light of their differing sociocultural and economic backgrounds.

The Economics of Government

2020 ◽  
Author(s):  
Vito Tanzi
Keyword(s):  
Public Finance ◽  
Public Sector ◽  
Social Welfare ◽  
Real Life ◽  
Rent Seeking ◽  
Major Conclusion ◽  
The Public ◽  
The Past ◽  
Private Market

This book deals with practical or real life aspects of public finance. It focuses on the growth in the activities of governments, in a world that expects more than in the past from governments. The book focuses on the growing complexity in both the work of the private market and that of the public sector. It stresses that part of the growing complexity is due to the more ambitious role that governments tried to play today, while part is due to choices made by governments, so that complexity may be partly avoidable. This was important in the different pursuit of social welfare by different countries. Complexity has increased opportunities for abuses, for rent seeking, and for mistakes in policies. It may also have increased the attraction of populist policies that claim to offer magical or easy solutions to problems. A major conclusion of the book is that the objective of simplicity in laws and in policies should be given more importance by both economists and governments.

Sign in / Sign up

Export Citation Format

Share Document