Rentier State

Definition

A rentier state is a country that relies heavily on income from external sources, such as natural resources or foreign aid, rather than its own productive activities.

Related terms

Resource Curse:

The resource curse refers to the negative consequences that can arise in countries rich in natural resources, such as corruption, economic instability, and inequality.

Economic Diversification: Economic diversification is the process of expanding an economy by reducing its dependence on one industry or source of income and developing other sectors.

Foreign Aid: Foreign aid refers to financial assistance provided by one country to another for various purposes like development projects, humanitarian relief, or economic support.