Rentier governance in the Kurdistan Region: Reasons and Consequences

Abstract

Based on the international standards for A rentier states, Kurdistan Region-Iraq has implemented the rentier governance. Over the past twenty years, the Rentierism has created major issues between the people and the authorities on the one hand; and has resulted in an unproductive society dependent on oil on the other. At the times of falling oil prices and political tensions between Erbil-Baghdad and other regional actors, the system is constantly in crisis. So, people and the political authorities are always uncertain and unable to formulate their strategic and long-term plans. Currently, Iraq and the Kurdistan Region have been following the principles and characteristics of the rentier system (due to the focus on employment and dependence on oil revenue) without diversifying other economic resources. Kurdistan Region, despite its efforts to become an independent economy and oil-dependent, has a total debt of 30 billion US dollars and has not been able to distribute salaries of employees regularly for more than a decade. We, therefore, come to the conclusion that the rentier system has brought many crises to the region and there should be an attempt to change this system to diversify its economic resources and pay attention to taxes, agriculture, tourism, investment and other industries.

This Research discusses the definition, concept and characteristics of rentier governance. It examines the most important factors that led to the emergence of this system and its consequences on Kurdistan region's society and its political system. Finally, the researcher presents some conclusions and suggestions for the transition needed for the system of governance.