Does this sound familiar? Petro states arent like other states for several reasons, says Karl. For starters, their dependence on oil profits breaks the necessary link between taxation and representation. Instead of extracting state funds from citizens, wealth magically comes from the ground. This makes governments unaccountable; it means that people dont demand to see how money is spent. And oil governments, in turn, tend to treat their citizens like subjects, either paying them off or, when necessary, repressing them. Wedded to boom and bust cycles, oil-dependent regimes are either overspending to keep themselves in power or accruing debt to mask problems with seemingly no ability for fiscal reform. Oil and highly centralized rule go together. Oil wealth permits governments to dismantle accountability mechanisms, weaken bureaucracies and undermine the rule of law. Karl further found that although petro states appear strong, and some governments last for long periods of time, these oil infused regimes are highly vulnerable. When they collapse, they fall apart very quickly. Neither autocracies nor democracies are immune. Petro-fueled environmental damage, violence and civil war often dominate oil-producing regions.
Posted on: Thu, 18 Dec 2014 19:40:47 +0000
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