Refinancing the Rentier State: Welfare, Inequality, and Citizen Preferences toward Fiscal Reform in the Gulf Oil Monarchies

Abstract

Against the backdrop of fiscal reform efforts in Middle East oil producers, this article proposes a general framework for understanding how citizens relate to welfare benefits in the rentier state and then tests some observable implications using original survey data from the quintessential rentier state of Qatar. Using two novel choice experiments, we ask Qataris to choose between competing forms of economic subsidies and state spending, producing a clear and reliable ordering of welfare priorities. Expectations derived from the experiments about the individual-level determinants of rentier reform preferences are then tested using data from a follow-up survey. Findings demonstrate the importance of non-excludable public goods, rather than private patronage, for upholding the rentier bargain.