Perilous Petrodollars: The Effects of Oil Wealth on Democratization

Abstract

This paper examines the relationship between oil wealth and democratic reform. This relationship is especially problematic for states that were less developed prior to the discovery of oil. The large oil revenues of authoritarian rentier states, coupled with limited mechanisms for distributional accountability and political participation, ensure a difficult road ahead for democratic reforms in such countries. As long as global dependence on oil persists, the internal politics of oil-rich states will remain extremely important. Hence, it is necessary to understand the ways in which oil impedes democracy in order to look for viable solutions.