Rentire states are wealthy mostly, however its not developing nor producing to help in self sufficient, which created a problem needed to be solved, two suggested solutions are taxation with some benefits resulted from a previous study between high tax countries and low tax countries the other solution is diversification and its effect on economy and socially and two supportive examples
Rentire states is the country that receives its revenues mostly if not all from outside worlds (rent) on regular basis. Most of the sources of rent paid by those other countries comes from natural resources like oil and as Beblawi defines a rentier state as one in which rents are paid by foreign actors and are amassed by the state with limited involvement of the population, some examples are, Saudi Arabia, kuwait, Gabon, Netherlands and others. Rent economy must contains four element to be called rentire states which are: firstgustis the rent element, second is the rent must come from an outsider country, third, little parties contributes in generating this rent and fourth and the majority consume it. Forth, the government who is responsible for receiving the rent in the economy (suberbant, 2007) The problem:
•The rentire states generates their revenue from outside resource • Which eliminate domestic economy (yates, 1996)
•Which turn the country into an expenditure one instead of production •Then the country will not become self sufficient, its resources will not be used suffetionatily which will make it an expenditure and dependent country •The mentality will change into a rentire mentality because of the lost incentive to produce or learn as people became dependent on the government and the income from the rent. •The government goal in the rentire state is to spend from the rent system without the need of taxation system for its income which make people less involved in the decision making...