The politics of profit in Tunisia: Utility of the rentier paradigm?

Abstract

The analysis of rent-seeking in developing countries has shed light on the nonproductive character of business classes and the parasitic nature of state elites in many settings. The “rentier paradigm” however, is problematic in assuming that all manifestations of state intervention and private cronyism are inherently subversive of efficient growth. Evidence from Tunisia suggests that government mediation of profits, and even extensive cronyism, can be compatible with productive investment and growth if appropriate political conditions prevail. The nature of state structure and the logic of the regime's sustaining political coalition will determine the developmental impact of state economic management.