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The Guardian State and its Economic Development Model

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  • Laura El-Katiri

Abstract

This article outlines the core features of a particular, resource-led development model, the oil-rich guardian state. Its key distinguishing feature from other resource-rich economies consists in its strong economic welfare objective function, which in line with its exceptional oil wealth renders its population amongst the wealthiest nations in the world. However, the guardian state also illustrates some of the negative externalities associated with resource wealth, namely the policy dilemma of directing seemingly abundant financial resources into the economy. The state faces a high propensity for waste, and for the systemic dilution of market incentives, thereby rendering sustained and self-generating economic growth more difficult than in less resource-rich economies.

Suggested Citation

  • Laura El-Katiri, 2014. "The Guardian State and its Economic Development Model," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 22-34, January.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:1:p:22-34
    DOI: 10.1080/00220388.2013.849340
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    References listed on IDEAS

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    1. Bulte, Erwin H & Damania, Richard & Deacon, Robert, 2003. "Resource Abundance, Poverty and Development," University of California at Santa Barbara, Economics Working Paper Series qt66z854gv, Department of Economics, UC Santa Barbara.
    2. Eoin McGuirk, 2013. "The illusory leader: natural resources, taxation and accountability," Public Choice, Springer, vol. 154(3), pages 285-313, March.
    3. Moore, Mick, 2007. "How Does Taxation Affect the Quality of Governance?," Working Papers 12795, Institute of Development Studies, International Centre for Tax and Development.
    4. Mr. John Thornton & Fabian Bornhorst & Mr. Sanjeev Gupta, 2008. "Natural Resource Endowments, Governance, and the Domestic Revenue Effort: Evidence from a Panel of Countries," IMF Working Papers 2008/170, International Monetary Fund.
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    Cited by:

    1. Wegenast, Tim & Beck, Jule, 2020. "Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa," World Development, Elsevier, vol. 130(C).
    2. Driouchi, Ahmed & El Alouani, Hajar & Gamar, Alae, 2014. "Descriptive Analysis of Economic Diversification, Price and Revenue Dynamics in Oil and Energy in the Arab World," MPRA Paper 59389, University Library of Munich, Germany.

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