Drawing on recent critiques and advances in theories of the rentier state, this paper uses an in-depth case study of the Hashemite Kingdom of Jordan to posit a new "supply and demand" approach to the study of external rents and authoritarian durability. The Jordanian rentier state is not exclusively a product of external rents, particularly foreign aid, but also of the demands of a coalition encompassing groups with highly disparate economic policy preferences. The breadth of the Hashemite coalition requires that the regime dispense rent-fueled side payments to coalition members through constructing distributive institutions. Yet neither rent supply nor coalition demands are static. Assisted by geopolitically motivated donors, the Hashemites have adapted institutions over time to tap a diverse supply of rents that range from economic and military aid to protocol trade, allowing them to retain power through periods of late development, domestic political crisis, and neoliberal conditionality.
Is business the solution to the problems of the Middle East? Some economists and policymakers argue that unleashing the Arab private sector is the key to sustainable growth and more liberal politics. Pete Moore's book is the first to examine relations between state authority and elite business representation in the region. By analysing the Kuwait and Jordan cases, he considers why organised business in Kuwait has been able to coordinate policy reform with state officials, while their Jordanian counterparts have generally failed. The author concludes that unleashing the private sector alone is insufficient to change current political and economic arrangements, and that successful economic adjustment requires successful political adjustment.
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