Leveraging weakness into strength: how neo-patrimonial oil-producing countries survive economic crises.

Abstract

Most scholarship on major oil-producing countries (OPCs) focuses on their illiberal characteristics, but scant research explores how these regimes react to periodic oil price collapses, particularly neo-patrimonial OPCs with relatively low state capacity, herein termed gatekeeper OPCs. These OPCs should be extremely vulnerable to regime change during economic crises. However, since the most recent collapse in international oil markets in 2014, almost all neo-patrimonial OPCs have managed to weather the ensuing fallout, thereby begging the question of how these seemingly vulnerable regimes manage to survive extended periods of economic crises. We hypothesise that the likelihood of regime survival in neo-patrimonial OPCs depends on a strategic calibration of domestic neo-patrimonial policies, such as clientelism and executive aggrandisement, and the skilled navigation of global geopolitics. We find evidence that incumbent governments leverage international geopolitical tensions during economic crises to secure valuable foreign aid from key allies, which allows them to maintain the domestic neo-patrimonial strategies required to safeguard their power. We reached the above finding through a nested mixed-methods research design combining quantitative analysis of 35 major OPCs from 2011 to 2018 using Cox proportional hazards models with the qualitative comparison of two gatekeeper OPCs-Chad and Venezuela.