TX_1~AT/TX_2~AT


International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 51

International Journal of Energy Economics and 
Policy

ISSN: 2146-4553

available at http: www.econjournals.com

International Journal of Energy Economics and Policy, 2019, 9(6), 51-64.

Identification of Generalized Models of Development of Economic 
Systems of Rental Character Based on the Retrospective Analysis 
of World Experience

Liliia V. Matraeva*, Nataliya A. Korolkova

Economic Department, Russian State Social University, V. Pika, 4, Russia, Moscow. *Email: matraeva@rambler.ru

Received: 28 May 2019 Accepted: 02 September 2019 DOI: https://doi.org/10.32479/ijeep.8178

ABSTRACT

The rental nature of the economic system determines the availability of additional opportunities as well as the problems of its development. The 
decisive factor is the choice of a development model based on the system of state regulation of rental relations, including the search for effective 
combinations of state policy mechanisms. The core in most cases is energy policy and energy management as a development factor. Now we can talk 
about the accumulation of sufficient experience to conduct a comprehensive study of the peculiarities of the development of rental economies. The 
article reveals the experience of 24 countries of the world (30 cases) with a focus on the peculiarities of the formation and implementation of the state 
policy. The cluster analysis allowed us to identify three generalized models for the development of rental-type economic systems with a pronounced 
profile. This provides a basis for the identification of the main priorities.

Keywords: Rental-type Economic System, State Policy Mechanisms, Clustering 
JEL Classifications: P510, O570, O110

1. INTRODUCTION

Countries with rental-type economic systems are a large group 
in the world economic system, but it is, at the same time, a very 
heterogeneous one: Norway, Chile, USA, Venezuela, Australia, 
Nigeria, Mexico, Russia, Angola, Indonesia, Saudi Arabia, 
Canada, Sweden, Bahrain, Colombia, etc. However, the history 
shows that all these countries are described by the condition of 
the economic systems characterized by instability due to problems 
in the system of rental relations. In this regard, each country is 
faced with the need to search for various combinations of public 
policy mechanisms that allow them to mitigate macroeconomic 
risks of a rent nature. This led to the need for the formation of 
scientifically based approaches aimed at solving these problems.

Conceptual approaches to the assessment of state policy within 
the framework of rental-type economic systems began to form as 

an independent direction in the 1950s and represented a failure 
of description (in a greater degree) and ways to overcome various 
negative phenomena in different periods of the economic history 
of a number of resource-rich countries.

One of the first significant works was an article by Prebisch, 
1950, who studied the imbalance of the trade balance and the 
deterioration of the economic situation of oil-exporting countries 
with a deterioration in the conditions of foreign trade in the 
long term due to a fall in commodity export prices relative to 
the prices for imported industrial goods. The theoretical results 
obtained were refined and supplemented by Singer and Meier, 
1958. This formalized the Prebisch - Singer hypothesis. Their 
recommendations were the basis for the state policy of a number of 
Latin American countries of the 1960s-1970s. It was subsequently 
recognized as ineffective and was strongly criticized. The core 
of this conceptual model was the policy of import substitution.

This Journal is licensed under a Creative Commons Attribution 4.0 International License



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201952

The following additions to the theoretical aspects of managing of 
a rental-type economic system are associated with the definition 
of a staple trap theory (Innis, 1954; Baldwin, 1956). The study 
thereof was based on the Canadian experience. As a basis of state 
policy, it was recommended to build a system of intersectoral 
relations of a certain type: the export-oriented resource sector 
was considered as a growth point of the industries that produced 
the means of production for the commodity sector and industries 
related to the processing of raw materials. Subsequently, the 
hypothesis was supplemented and a diversification strategy 
based on the development of resource exports was suggested 
(Hirshman, 1977).

A special place among theoretical studies is occupied by the issues 
of overcoming the Dutch disease (the Groningen effect) (Corden 
and Neary, 1982; Krugman, 1987; Matsuyama, 1992), described by 
the diversion of investment in the upstream sector of the economy, 
the dominance of “simple” technologies, the slowdown in the 
accumulation of knowledge and decrease in demand for human 
capital, deindustrialization of the economic system, reduction of 
the manufacturing sector, primarily the manufacturing industry, 
as well as unemployment rise. Restructuring of the economic 
system is considered as the main approach to overcoming negative 
consequences from the position of state policy. There are two 
models: British (liberal) and Norwegian (based on government 
regulation). The British model is based on the regulation of 
foreign economic changes, therefore, the main activities are the 
interventions on the foreign exchange market in order to stabilize 
the exchange rate and support the expansion of international 
sales markets via product expansion of industries with low 
competitiveness to the markets of less developed countries. 
The Norwegian model focuses on the creation of a sustainable 
sovereign fund, including to promote the implementation of anti-
inflationary policies, as well as to support innovative industries, 
primarily related to the commodity sector (technologies and 
equipment for oil production).

Consideration of the Nigerian disease phenomenon (Hiro, 2008) 
manifesting itself in the form of redistribution of rental income 
without regard to national interests (in the interests of the ruling 
elites), as well as a high degree of corruption of the isolated 
political elite, also complemented the theoretical understanding 
of the management of the rental-type economic system. If we 
considering the economy of Nigeria, a set of recommendatory 
measures is associated with the development of competition in 
the primary industries and the strengthening of the position of 
private companies compared to state ones (restoring the balance 
between the private and state sectors).

In the Russian literature, the most significant results in the 
study of the theoretical aspects of rental-type economic systems 
management were achieved by Polterovich and Vladimir, 2007. 
Two theoretical results can be distinguished in their works: the 
formalization of the hypothesis of “conditional damnation” and 
the selection of tools to stimulate growth with abundant resources, 
namely the following aspects:
• The policy of withdrawing most of the resource rent by 

taxation;

• Passive strategy based on the implementation of the savings 
function via the formation of sovereign funds (Polterovich 
and Popov, 2003);

• D e v e l o p m e n t  o f  i n d u s t r i a l  p o l i c y :  a  s u m m a r y  o f 
recommendations for the formation of state programs aimed 
at capital accumulation, a critical assessment of the minimum 
wage measure (Rodrik, 1996; Vorobyov, 2006), public 
investment in technology (Zhukova, 2006);

• Accumulation of foreign exchange reserves as a tool of low-
selectivity industrial policy (Polterovich and Popov, 2005);

• Lowering of fuel prices is equivalent to the entire domestic 
production subsidizing. It is noted that the undervaluation of 
prices accelerates growth in the early stages of development 
(with relatively low GDP per capita) and slows down the 
growth if the country is sufficiently developed, that is, the tool 
is associated with the dependence of the threshold nature.

All of the above authors adhere to the mainstream economic theory 
and policy to varying degrees. It supports the “concept of the rental 
state” (Mahdavy, 1970; Kimelman, 2011) focusing on the decisive 
role of incomes of rental origin among all incomes of economic 
entities, as well as highlighting the process of appropriating rent 
as the basics of social and economic development. At the same 
time, there is an alternative point of view assuming that “it is 
impossible to form a successful economic policy on the basis of 
theories built on abstract mathematical models and calculations,” 
expressed by Rainer (2011).

It is also interesting that the overwhelming majority of researchers 
emphasize the “abundance” (wealth) of resources, that the center 
of attention is focused on resource redundancy as one of the 
main parameters. At the same time, the rental economy can be 
built up even in terms of resource availability (under appropriate 
external conditions for the rent formation). N. Ding and B. Field 
(Ding and Field, 2005), and further T. Gylfason (Gylfason, 2007) 
pointed out the significance of the “resource dependence” and 
“resource security” concept. According to their observations, the 
first corresponds to the manifestations of the “resource curse,” the 
second admits the formation of positive trends in the economic 
development. This statement can be supplemented: resource 
availability stimulates growth and development of the economy 
only within certain limits, which largely depend on the existing 
institutional conditions. At the same time, both the resources and 
the rental income derived from them can turn from an intensifying 
factor into a destabilizing one, and vice versa. Closely related to 
this is the study of the issue, which can be summarized as “the 
presence of a threshold effect”: there is an estimated threshold 
value of the level of institutional development, below which the 
abundance of resources impairs the quality of institutions, and 
above - does not have a significant effect on it. The presence of this 
threshold is partially confirmed by the empirical test carried out in 
the already mentioned work of Mehlum et al., 2005, as well as the 
last author in the work of Robinson et al., 2006, who established 
the dependence of the threshold on the quality of institutions in 
the country’s economy. Along with this, there is a downside: the 
dependence of the threshold on the magnitude of the resources. 
This connection was taken into account in the theoretical model 
of the threshold in the first of the above mentioned works, but the 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 53

respective econometric calculations were performed by already 
noted Polterovich and Vladimir (2007).

Recently, in some works (Zotin, 2017a), there has been an 
application of the concept of “mismanagement” to the economic 
policies of countries rich in natural resources. As applied to the 
management of rental-type economic systems, this term is used to 
disclose a type of management characterized by both unintentional 
errors and deliberate unlawful actions by economic entities (first 
of all, government officials) and the lack of proper internal control 
and supervision over the activities of rental relations entities. 
The most striking example is Venezuela. Its history emphasize 
the periods of the emergence of a new political regime via the 
financing of oil rent.

Thus, it is possible to make a number of intermediate conclusions 
about the features of the theoretical study of the problems of 
formation of the state policy of rental economies:
• The majority of theoretical studies in this area is situational 

in nature, based on the description of different periods in the 
economic development of individual countries of the world;

• In many cases, the one-sidedness of the resource path 
of the economic development is emphasized: the focus 
is on identifying and describing the shortcomings and 
paradoxes related to the formation and use of rent in various 
macroeconomic situations;

• There is a problem of the possibility of replicating the results 
obtained on the basis of the experience of individual countries.

It is necessary to change the research task itself: do not try to 
identify key mechanisms as a “medicine” based on the experience 
of individual countries, go on to the search for combinations of 
mechanisms that, under certain conditions, will ensure that the 
rental economy is in an effective state. As a result, there is a need 
for a comprehensive study that will generalize and systematize 
the main theoretical approaches to the formation of state policy 
in the framework of rental-type economic systems management.

This is confirmed by the research activities of the international 
organizations attempting to create international recommendations 
for rental-type economic systems. A special place is occupied by 
analytical brochures and reports of the IMF.

Initially (in the early 2000s), a series of works was observed in the 
IMF Special Issues, combined with the Oil Wealth Management 
topic. The studies were based on the consideration of individual 
cases, for example, Azerbaijan (Niko et al. 2014), and contained 
an assessment of a specific economic system and recommendations 
from fund analysts on its further development.

At present, it is possible to note the formation of IMF reports 
not only in individual countries of the world, but also in the 
context of specialized issues, in particular, in the mobilization 
and management of revenues from the commodity sector. This 
group of publications is presented by the reports of The Managing 
Natural Resource Wealth Trust Fund (MNRW-TF), operating since 
2011. MNRW-TF implements the IMF research and analytical 
work in this subject area, identifies the approaches based on 

successful cases, and draws lessons from national experience 
for the subsequent formation of international recommendations.

More than 20 projects were implemented in the first phase of 
the MNRW-TF (May 2011-April 2017). They were aimed at 
improving the fiscal regimes of managing the extractive industries 
(improving extractive industry - EI), expanding the capacity of 
authorities to administer and control income from EI, developing 
public financial management systems, including sovereign wealth 
funds, improving the quality of reporting on the accounting 
of natural resources in national accounts (MNRW-TF, 2016a). 
This happens via technical assistance, which is to promote the 
integration of the recommendations of the fund into the state 
policies of the participating countries, and to conduct customized 
training.

A special place among the results of the first phase of MNRW-TF 
is occupied by the developed methodological framework. In 
particular, some attempts have been made to form comprehensive 
recommendations on the transformation of state policy (regulatory 
framework) for rental-type economic systems:
• “Administering Fiscal Regimes for Extractive Industries: 

a Handbook” (Calder, 2014) - in terms of the effective 
management of revenues from the extractive industries;

• “Sovereign Asset-Liability Management (SALM) - Guidance 
for Resource-Rich Economies” (MNRW-TF, 2014) - in terms 
of the effective management of sovereign funds.

In addition, a methodology was developed for the assessment of 
the effectiveness of the MNRW-TF project implementation aiming 
to diagnose the success of the participating countries and based 
on an approach to project management, especially development 
projects, called “results-based management.”

The project is now in the second phase of its implementation 
and focuses on the capacity development via five interconnected 
modules to improve the fiscal regimes of the upstream and revenue 
management in the participating countries:
• Module 1: EI fiscal regimes, licensing, and contracting;
• Module 2: EI revenue administration;
• Module 3: Macro-fiscal, public financial management, and 

expenditure policy;
• Module 4: Exchange rate regimes and macroprudential 

policies;
• Module 5: Statistics for managing natural resources (MNRW-TF, 

2016b).

It is interesting that the MNRW-TF methodology offers exactly 
an integrated approach to the implementation of the modules 
involving a combination of public policy mechanisms, and 
not fragmentary improvements. The most prominent example 
today is the recommendation on using IMF’s Fiscal Analysis for 
Resource Industries (FARI) model (MNRW-TF, 2016c): a fiscal 
analysis (module 1) provides a basis for the assessment of risks 
associated with the income from the resource sector (module 2), 
which in turn provides the possibility of macro-budget forecasting 
of government revenues (module 3).



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201954

It should be noted that this approach of MNRW-TF is the most 
advanced in the field of formation of integrated public policy in 
the framework of rental-type economic systems management, 
but focuses on the management of financial flows and the 
achievement of stability in the field of fiscal policy. In particular, 
the issues related to structural policy, development of real sectors 
of the economy, innovation policy, etc. are not addressed. This 
is confirmed by the current assessment of the most important 
results of the implementation of the second phase of the project 
for the participating countries, presented in the annual report of 
MNRW-TF (MNRW-TF, 2018).

Besides, as part of the formation of international recommendations, 
it is possible to highlight the development of the Extractive 
Industries Transparency Initiative standard (EITI 2016) (EITI, 
2017), whereby the information on the oil, gas and mining 
industries is published. It is important to note that the document is 
not instructive in the management of the upstream sector, but rather 
a tool that provides information on how this sector is managed. 
Testing of the EITI Standard ended in 2015 in Norway. By now, the 
EITI Compliance Test is being implemented in another 48 countries 
(EITI, 2019) with the support of MNRW-TF. The content of the 
initiative comes down to the annual provision of key information 
on sector management by the participating countries, along with 
the recommendations for sector management improvement. Thus, 
the base of best practices is being formed and the progress is being 
monitored in the improvement of the efficiency of resource sector 
management in selected countries of the world. At the same time, 
active areas of analysis are contracts and licenses in the sphere of 
subsoil use, production processes, the taxation system, the income 
distribution model, the contribution of resource industries to the 
country’s social and economic development. Also there is an 
interesting fact that the EITI is actively developing the institute of 
public oversight and discussions in the subject area under study: 
there is a special requirement for the formation and functioning of 
a national multi-stakeholder group (representatives of government, 
industry companies and civil society).

Thus, a review of empirical studies confirms the feasibility of 
conducting a comprehensive study of rental economies and makes 
it possible to raise the question of identifying the development 
model of a rental-type economic system, which leads to an 
effective state of the system.

2. RESEARCH METHODOLOGY

The study of scientific papers, representing the results of theoretical 
studies of rental economies, makes it possible to emphasize their 
one-sidedness, which is explained by focusing on the consideration 
of a small number of economies or a particular economic system. 
On the other hand, observations and studies of the economies of 
different countries of the world described by the systems of rental 
relations of different degrees of development, that is, empirical 
studies, allow us to conclude that their experience is possible and 
expedient to generalize.

Thus, if earlier the study of rental-type economic systems could 
only be situational in nature and was fragmentary, then, at present, 

it is possible to speak of accumulating sufficient experience for 
comprehensive research in this area. Therefore, it is permissible to 
assume that a number of generalized models for the development 
of rental-type economic systems can now be identified based on 
the experience of using various public policy mechanisms therein.

Consequently, we are faced with the technical task of rental-type 
economic systems classification as per the state policy mechanisms 
used therein, that is, identifying homogeneous groups from the 
entire set of objects studied, uniquely identified and having a 
clearly interpretable profile. One of the most well-known statistical 
methods used to solve such problems is cluster analysis. It which 
allows to form homogeneous groups inside and heterogeneous 
ones with respect to each other as per given parameters most 
accurately. At the same time, it is advisable to lay down the optimal 
ratio of intercluster to intracluster dispersion as the main criterion 
for the formation of clusters, taking into account the economic 
task that has been set.

The initial base of the research was formed on the basis of an 
expert analysis of the mechanisms of state policy used in 30 cases 
of economic development in various countries. They were coded 
on a binary scale in the results of the expert’s answers, where 0 
is the absence of a mechanism, 1 is the implementation of the 
mechanism within a specific case. The most acceptable for solving 
the problem is the k-means method. However, the method cannot 
be applied to binary data (IBM, 2009).

In this regard, a hierarchical cluster analysis has been implemented 
using an agglomerative algorithm (combining objects, initially 
considered as separate small clusters, into larger groups) in the 
SPSS statistical package. The main method of cluster formation 
is the Ward’s method, which allows clustering as a sequential 
procedure, at each step combining two such classes with 
minimization of statistical distance between the classes, providing 
a clearer cluster solution in conditions of data overlap (Vukolov, 
2013). Binary data (nominal scale) analysis imposes additional 
restrictions on the selection of distance metrics. The Squared 
Euclidean Distance for binary data (IBM, 2009) was chosen as 
an indicator characterizing the measures of differences in the 
research objects.

The determination of the optimal number of clusters was based 
on the interpretability of the constructed model (meaningful 
importance of groups), as well as the following criteria:
• Intercluster distance by analyzing the agglomeration graphs 

and visual analysis of tree diagrams (Moosmyuller and Rebik, 
2015);

• Cluster sizes by building a pivot frequency table for various 
cluster solutions (from 3 to 5 clusters).

Final cluster centers were calculated to interpret the main 
characteristics of the formed groups. A report was generated 
on average values for each attribute, taking into account the 
establishment of the cluster number as a grouping variable in the 
absence of the specified ability for hierarchical cluster analysis in 
the SPSS statistical package. As a result, basic, superstructure and 
non-involved mechanisms of state policy were identified within the 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 55

framework of generalized models of development of rental-type 
economic systems with clear profiles.

3. SPECIAL TOOLS

3.1. Description of the Information Base Forming 
Method
The objects of cluster analysis are the state of the rental-type 
economic systems. The experience of using different mechanisms 
of public policy aimed at leveling problems in the economies of the 
specified nature can be considered on the example of 24 countries 
(the largest producers and exporters of natural resources). At 
various periods of time, 30 states of these economic systems can be 
identified (30 cases), which are characterized not only by different 
sets of mechanisms, but also by levels of economic efficiency.

3.1.1. Venezuela (1970s)
The period of Saudi Venezuela (Venezuela Saudita): the state 
mega-project “Great Venezuela” was adopted (Yergin, 2017) 
in the face of the need to overcome the negative recent import 
substitution policies and control the flow of petrodollars from 
the oil shock of 1973. The project implemented substantial state 
intervention in the country’s economic system: creation of a system 
of subsidies, creation of jobs and artificial increase of the salary 
plan, diversification of exports by interfering with the activities 
of non-oil enterprises, etc. The project implementation depended 
strongly on the sustainability of rental incomes and was ineffective 
after the fall in oil prices since 1979.

3.1.2. Venezuela (1990s)
The country implemented a state policy dictated by the 
recommendations of the IMF. A package of measures aimed at 
widespread privatization, opening the country to foreign capital in 
any sector of the economy, as well as price liberalization has been 
taken without taking into account economic security. The result 
is a financial crisis in the mid-1990s (Economic portal, 2019).

3.1.3. Venezuela (2000s)
The adoption of the new economic program, “Bolivarian Socialism 
of the 21st Century”, in 1998 restored the basic principles of the 
country’s economic security. Key aspects: building of a strategic 
planning system, concentrating raw materials and land resources 
in the hands of society, tight control over them, a complete 
change of development priorities while maintaining a reasonable 
balance between the public and private sectors of the economy 
(Dieterich, 2005). However, manual government is used through 
non-market mechanisms. The result is economic growth against 
the background of a short-term artificial increase in the well-being 
of the country’s population, but without creating of a sustainable 
basis for economic development.

3.1.4. Angola
Development is constrained by the strong dependence of the state 
budget on the hypertrophied oil and gas complex. The energy 
sector is expanded by international oil and gas companies. The 
participation of Sonangol national company in the extraction 
of energy resources is very limited. The main function of the 
company is reduced to concession agreements conclusion and 

taxes collection (De Oliveira, 2007). The development of other 
industries is hampered by the Dutch Disease.

3.1.5. Mexico
Currently, rent dependence is preserved by the maintenance of 
inefficient tax system and other fiscal mechanisms (Farfan-Mares, 
2010).1 At the same time, the country demonstrates successful 
economic development by becoming one of the strategic suppliers 
of oil in the United States (implementing the US energy strategy), 
strengthening of the economic ties in the non-oil sector, including 
the development of makiladoras (from 1964 till present time), 
implementing the program of cross-border development (since 
the 1980s), the abolition of the monopoly of Petroleos Mexicanos 
(Pemex) state-owned company and the opening of the oil and gas 
industry to attract foreign investment (2013).

3.1.6. Azerbaijan
The export-oriented production model and economic diversification 
has been declared the target model of economic development. This 
is stated in a variety of strategic documents: “Azerbaijan 2020: 
A Look into the Future” development concept, the “State Program 
for the Development of Industry for 2015-2020” and a number of 
strategic road maps for the national economy and main sectors of 
the economy. However, the declarative rather than the functional 
nature of the set of strategic documents is noted, including the 
“Long-term strategy for managing oil and gas revenues for the 
period 2005-2025” (Decree, 2004; Reports and Statistics, 2019).

3.1.7. Indonesia
An example of successful diversification of the economy via 
the implementation of an investment growth model including 
significant investment in production, export orientation, and 
reliance on cheap labor (Zotin, 2017b). The leveling of resource 
dependence, in particular, the dependence of the state budget on 
rental income, was ensured via the effective state policy, initially 
(from the 1970s) aimed at developing the agro-industrial complex 
of Indonesia, and then (from the 1990s) becoming an export-
oriented industry due to preferences from the USA (Program 
Document, 2017) and Japan (Hoekman et al., 2009).

3.1.8. Saudi Arabia (1960-1990s)
This period of the country development is characterized by a high 
degree of resource dependence. The system of distribution of 
state budget revenues is of a centralized type, which is associated 
with the current monarchical system. A complex bureaucratic 
apparatus was used as an active tool to formalize rent generation: 
the country implemented the “free institutions design” of state 
power (Hertog, 2007). The country has not formed a system of 
taxation and sovereign funds. Industrial policy was fragmented, 
being a hidden form of redistribution of oil rent without effective 
development of the non-oil sector.

3.1.9. Saudi Arabia (Since 2000)
The country recognized the need to transform the economic system 
(after a period of low oil prices from the 1980s-1990s), but there 

1 Makiladoras - various assembly plants, placed by foreign companies 
(mainly the United States) in Mexico. 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201956

is still a strong dependence on fluctuations in the world oil prices 
(Foudeh, 2017), an inefficient system of energy subsidies, the 
lack of a developed tax system strong bureaucracy, significant 
public sector. Saudi Vision 2030 development strategy (Program 
Document, 2016a) is being implemented in the country to level 
resource dependence from 2016. Six state programs have been 
launched and about 96 KPIs have been established, stated in the 
National Transformation Program 2020 (Program Document, 
2016b). A sovereign fund, Public Investment Fund (PIF), has been 
established. It performs an investment, not a savings function.

3.1.10. UAE
Government policy is centralized due to the dominance of the 
emirate donor, Abu Dhabi, based on the use of oil rent. The 
income tax generated by oil and gas companies (55-85%) (PWC, 
2015) generated by the state budget surplus becomes the basis 
for the activity of sovereign funds with an active investment 
strategy. Regional development is performed taking into account 
the absence of dependence on world oil prices: the other emirates 
limit subsidies from Abu Dhabi. The UAE was able to use its 
geopolitical position as a competitive advantage (1980-1990s) 
by creating of special economic zones (Biryukov and Biryukova, 
2016), removing of customs barriers and an effective labor 
migration system (Movchan, 2017). Now the UAE is a global 
financial and business center, the main reseller for a number of 
developed countries, one of the world’s re-export centers.

3.1.11. Iran
Oil rents led to the acceleration of development in the 1970s 
with the formation of an unbalanced economic system: the White 
Revolution doctrine (Sergeyev and Sarukhanyan, 2012) suggested 
agrarian reform and accelerated industrialization from the 1960s 
on the basis of attracting foreign capital without regard to national 
and religious specifics. But there is a forced reorientation of the 
development of the industrial complex to the base of internal 
reserves (Salitsky et al., 2017) in the period from 1979-2016. The 
country returned to the implementation of the strategy of already 
re-industrialization by attracting foreign direct investment after 
the international sanctions removal (Zotin, 2017c).

3.1.12. Nigeria
An example of public policy for the rental income management, 
leading to the conservation of social and economic problems. The 
nationalization of hydrocarbon production and the concentration of 
rental income at the federal budget level were forced measures to curb 
regional development problems (Manasseh et al., 2019). This has led 
to the formation of sectoral imbalances, including the restriction of 
agricultural development, the development of “Nigerian disease” and 
the excessive dependence of the state budget on rental income, and 
exposure to external oil shocks (IMF, 2018). Since 2000, Nigeria has 
managed to change the rent distribution formula (Grigoriev, 2017a), 
which provides the basis for the economy diversification with a focus 
on the revival of the agro-industrial complex and the development 
of the telecommunications sector.

3.1.13. Norway (Until 2014)
The success of the Norwegian experience is formed from the 
following key components: organizational and functional 

management structure (Thurbera et al., 2011), state ownership 
system, taxation system, rental income distribution system, social 
policy. There is a two-part management model for the national oil 
company (since 1985): free participation in the capital (67% of 
Statoil [MTIF, 2015]) and the State’s Direct Financial Interests 
system. Tax system: the marginal tax rate is 78% (22% is the 
base tax, 56% is the special tax of oil producing companies 
(MTIF, 2019). It is also interesting that government revenues 
are rent-dependent, but the costs are not. This is achieved via the 
activities of the Global Pension Fund Global (LovData, 2016). As 
a result, the Norwegian budget is more non-oil and this ensures a 
balanced development of the country and facilitates the creation 
of a diversified export-oriented industrial complex.

3.1.14. Norway (Since 2014)
The country is faced with the question of the need for structural 
transformations for a smooth transition to the progressive nature 
of the economic system in the context of the exhaustion of its 
resources. The high sectoral differentiation laid down by the 
“national champions” support program since the late 1980s 
provided a shift in the focus of the country’s technological 
development. The measures taken (changes in investment 
approaches during industrialization and a new innovation policy) 
have so far shown low performance and additional diversion of 
investment flow and R&D development towards the oil and gas 
sector.

3.1.15. United States (Alaska)
A deterrent to unlocking the potential of the region and attracting 
investment from oil companies is the high level of taxes on oil 
production on land. Mitigation of the tax regime is hindered by the 
Senate of the US Congress. Investments in fixed assets play a key 
role in the economic growth model of Alaska; energy resources 
are not highlighted as a development factor (Bekareva et al., 
2018). The experience of creating the Alaska Permanent Fund in 
1976 (APFC, 2019) is also interesting in the example of Alaska. 
A natural restriction has been created for the misuse of the fund: 
the budget rule cannot be changed by the authorities, only via a 
referendum, since they are constitutional norms. Significantly, 
the fund’s policy since 1979 includes a special dividend program: 
direct distribution of a limited share of revenues generated on the 
basis of oil rent (10% of the total annual fund income) among state 
residents around (Alaska’s Constitution, 2019).

3.1.16. USA
The entire US state policy is aimed at ensuring its economic and 
also energy, security and the formation of the country’s energy 
independence (Khlopov, 2015). The current state policy complex 
is characterized by continuous state supervision of the subsoil 
development and production processes, flexible tax policy in the 
extractive industries, the use of a wide range of rent extraction 
tools (bonuses, rentals, fixed royalties, etc.), clear specification of 
property rights, accumulation of rent on regional level (Baykova, 
2013).

3.1.17. Great Britain
The UK has created an effective system of embedding the oil 
and gas complex in the national economy via the creation of a 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 57

financial system that can successfully absorb large-scale rental 
incomes, which are then used, including to support and develop 
the finished product industries (Ryazanov, 2011). At the same time, 
hydrocarbons are the property of the monarchy, a licensing regime 
is in force, whereby the licenses are granted for the exploration and 
production of oil (Act, 1998). The risk of resource depletion and 
becoming a net importer is updated: in 2017, resource availability 
is estimated at 4.4 years (BP Statistics, 2018). At the same time, 
the energy policy of the country is focused on the environmental 
protection and replacement of electric power capacities taking 
into account the use of low-carb technologies.

3.1.18. Australia
Regulation of mining is performed at the local level via mining 
laws of various states and territories. A licensing system is in place 
to pay royalties (Leary and Kerrigan, 2018). At the same time, the 
country used the mining industry as a driver for the development 
of high-tech services. The country realizes the redistribution of 
funds via an effective tax system (Bobylev, 2013) to support 
the technological development of the manufacturing and social 
sectors. At the same time, Australia does not have commodity 
sovereign funds, that is, the system is built in such a way that it 
does not require sterilization of the economy and is capable of 
absorbing all funds within the country.

3.1.19. Canada
The industrialization of the country was performed based on the 
formation of private investment activity and was financed via 
natural rent (Howlett et al., 1999; Kapitsa, 2014). At the same 
time, Canada’s state energy policy is based on strengthening its 
position in world energy markets (foreign policy - Extractive 
Sector Trade Strategy) (Caulfield, 2015), on the one hand, and on 
maintaining the investment attractiveness of national production 
facilities (domestic policy - licensed rental system for the provision 
of subsoil for use (Baykova, 2013) on the other one. Canada does 
not support the use of sovereign funds. The exception is Alberta, 
but its experience is not unequivocal (Kapitsa, 2007). The country 
also has significant positive experience in the development of 
energy conservation and energy efficiency policies (NRCan, 2015).

3.1.20. Sweden
A country with an effective economic system has always been 
export-oriented: initially natural resources (wood and iron ore), 
then products with high added value (engineering, etc.). At the 
same time, the main factor-the development of the economic 
system was labor productivity, not natural resources. State policy 
is based on: securing the forest as a national asset and renewable 
resource (Sweden Parliament, 2019), certification system, 
sustainable development policy of the “Green state of universal 
welfare”, support for the private sector, income redistribution 
system, social policy, employment policy and spatial planning 
(Holyavko, 2014).

3.1.21. Chile (Until 2009)
Chile’s economic development is based on the copper industry 
and rental income (Nikolaeva, 2018), but it was characterized by 
a lack of cost control and low efficiency and ease of manufacture 
of metal mining and processing until 2009. For a long time, the 

main instrument for the development of mining industry in Chile 
was concession agreements in the framework of exploration and 
mining of minerals - this was enshrined constitutionally (Act, 
1982; Act, 1983). This made it possible to attract the required 
volumes of foreign investment, but limited the possibilities for 
technological development of national producers and increased 
the dependence of government revenues on rental income. In the 
framework of the sovereign fund management policy (Copper 
Stabilization Fund), its inappropriate use is noted to repay foreign 
debt and subsidize domestic prices for gasoline.

3.1.22. Chile (Since 2009)
The state policy on the introduction of innovations in the mining 
industry has enabled Chile to diversify the economy and exports 
since 2009, raise the technological level of the country and achieve 
sustainable economic development. The country implements 
expanded state support for the innovation activity (Nikolaeva, 
2018), including via centralized coordination, organization of 
regional dialog sites on the problems of sectoral development of 
regions, the development of the Mountain Cluster, funding as an 
instrument of accumulation and redistribution of rental income 
mineral raw materials, as well as foreign investors attracting. 
Now the country’s innovation policy is closely linked to the policy 
of foreign investment attracting in the mining sector: attracting 
of new technologies from international companies, and not just 
financial resources (COCHILCO, 2019). All this makes it possible 
to gradually integrate Chile’s copper industry into international 
value chains.

3.1.23. Kuwait
The economic system of Kuwait is characterized by limiting of 
foreign influence (WIPO, 1962). Foreign participation is limited 
to the construction and maintenance of oil and gas facilities via 
one-time contracts. Special attention is paid to the social sector. 
The policy of expanding social payments is conducted annually 
(Mihin, 2018). The population is exempt from paying taxes. 
This set of measures is also associated with the prevention of 
the formation of social and political tensions characteristic of the 
countries of the Persian Gulf.

3.1.24. Bahrain
A concentration of economic opportunities, including rental 
income, was realized on the development of the manufacturing 
industry: oil refining, petrochemistry, and the aluminum industry 
under the threat of exhaustion of energy resources (oil and gas). 
Fiscal reforms are currently underway in the country, including 
the reduce of energy subsidies and introducing value added tax 
(CIO, 2017). The formation of sources of government revenues 
from non-oil sectors is highlighted as one of the main strategic 
objectives. One of the growth points of Bahrain is the sphere of 
financial and business services: the strategic position in the center 
of the Persian Gulf provides the country with development as a 
financial and business center of oil-exporting countries.

3.1.25. Colombia
The mining sector is the backbone of Colombia’s economy and the 
main source of rental income. Since 2003, the development of the 
industry began to be associated with attracting foreign investment 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201958

in a critical situation of depletion of resources due to the non-use 
of hydraulic fracturing technology (Neftegaz, 2017). Changes 
were introduced to the organizational and functional structure 
of the sector and the status of Ecopetrol backbone company was 
changed to a partially state-owned company (Zapata and Ricciulli, 
2018). The constraining circumstance of development remains 
social and political tensions in the country.

3.1.26. Zimbabwe
The basis of the economic system is the mining industry after 
an unsuccessful agrarian reform (2000s): gold, diamonds, iron 
ore, coal, etc., are mined. Rental income is concentrated in a 
narrow circle of the ruling elite. The country cannot ensure its 
own internal development and is limited in attracting foreign 
investment, including in the extractive sector. There are no high-
tech production. Social and political tensions are maintained in 
the country.

3.1.27. Iraq
Since 2006, the belonging of the oil and gas people of Iraq (Article 
111 of Iraq’s Constitution) is constitutional The monopoly on the 
development of Iraqi oil fields belongs to state-owned companies. 
In the early 2000s, Iraq has a series of reforms prepared. It was 
to create a unified system of strategic development of the Iraqi 
economic system based on the oil and gas sector and attracting 
foreign investment. The changes were never accepted due to the 
war initiated by the USA. Two types of service contracts of three 
types (Strong, 2018) and production sharing contract (almost not 
used) are now stipulated and legally fixed to attract international 
oil and gas companies.

3.1.28. Yemen
It is one of the poorest Arab countries. As the main task of 
developing the national economy, it is currently accepted to 
attract Arab and other foreign investments in the oil, gas, minerals 
industries and to achieve a long-term strategic partnership. The 
main form of relationship has become a production sharing 
agreement. Special provisions of the contract include exemption 
from a number of customs duties and related taxes, which reduced 
the share of rental income in GDP (Abdul, 2013). Interestingly, 
since mid-2005, the government of Yemen has ceased to insist 
on the prolongation of contracts with some large international 
companies (Hunt Oil Company (USA), Nexen (Canada), Total 
(France), DOF Group (Norway), creating instead national 
companies (Safir, PetroMasila). Only citizens of Yemen are at the 
key oil and gas enterprises. This may indicate the beginning of the 
formation of the principles of economic security and independence.

3.1.29. Kazakhstan
The problems of the public debt increase, provoking of a banking 
crisis due to uncontrolled lending, “Dutch disease,” atrophy of 
manufacturing industries, and corruption were formed against 
the background of the initial development of the export-oriented 
energy-resource mining sector at the expense of foreign investment 
attracting (Spivak, 2017). At present, it is declared that “in the 
near future, Kazakhstan will have to continue the process of 
transition from an economy driven by a factor of “raw materials 
competitiveness” to an economy based on growth due to the 

“investment factor,” with further achievement of the prerequisites 
for the beginning of an economy driven by an “innovations factor” 
(Decree, 2014; Bekturganova et al., 2019). However, the analysis 
of strategic documents shows the focus not on a comprehensive 
transformation, but on the improvement of the current growth 
model.

3.1.30. Russia
The development of the energy sector forming the basis of 
the Russian economy, is determined by a number of strategic 
documents, including the Medium-term Social and Economic 
Development Forecast, the Energy Strategy, the Energy Security 
Doctrine and the State Program for Energy Development. A tax 
reform in the oil and gas sector is being implemented in the 
country - a “tax maneuver”: the gradual zeroing of the export 
duty on oil and replacement thereof with a mineral extraction 
tax. The Russian system takes into account the sterilization of the 
economy - the development of sovereign funds (the Reserve Fund 
and the National Wealth Fund). However, the implementation 
of the state policy in this part violated the tasks set during its 
formation (Kudrin and Sokolov, 2017). De facto management of 
sovereign funds of Russia showed its low efficiency, and the rate 
of their exhaustion during the crisis period only confirmed the 
existence of systemic problems with the stability and balance of 
the state budget.

Signs during cluster analysis in the framework of this study are 
the mechanisms of state policy implemented in the studied rental-
type economic systems. The generalization of world experience 
allowed us to identify more than 20 mechanisms of state policy, 
allowing to level the key social and economic problems associated 
with the system of rental relations. At the same time, it is difficult 
to give them an unambiguous assessment by the criterion of 
efficiency: the degree of efficiency depends on the conditions for 
the implementation of mechanisms and the state of the economy. 
Under these conditions, it is more reasonable to group from the 
position of the availability of approbation of mechanisms in 
rental-type economic systems. Thus, it is possible to single out 
mechanisms subject to the implementation of experience in various 
rental economies (Korolkova, 2018):
1. Sterilization of the economy, including the formation of 

reserve funds that contribute to the redistribution of time and 
leveling of income;

2. Limiting the dependence of the budget on rental income by 
the reduce of production;

3. Floating exchange rate;
4. Distribution of a limited share of rental income (investment 

income) on a non-competitive basis: equal payments, 
pensions, social benefits;

5. Margin leveling;
6. Long-term contracts for rent-forming resource;
7. Hedging prices for rent-forming resource;
8. Denomination of debt in terms of the resource;
9. Provision of preferences for foreign companies;
10. Export diversification (including commodity exports);
11. Development of non-primary (non-oil) economic relations;
12. Centralization of the extractive industries, and then the resource 

industry as a whole (in the extreme case, nationalization);



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 59

13. Economic diversification via government intervention;
14. Creation of a subsidy system;
15. Development of energy conservation and energy efficiency 

policies;
16. Fiscal mechanisms, namely discriminatory taxation and 

regulation;
17. Import substitution policy and protection of domestic producers;
18. Price control in the domestic market;
19. Cartel agreements;
20. Loans at lower rates (on average LIBOR + 1.5%) for economic 

recovery secured by oil contracts (supported by oil supplies);
21. Restriction of repatriation of profits of foreign companies.

The latter mechanism is excluded during cluster analysis due to 
the lack of confirmed information for a number of countries.

4. RESULTS AND DISCUSSION

4.1. Experiment (Calculations Themselves)
The results of Euclidean distance calculation taking into 
account the binary connection were obtained at the first stage 
of hierarchical clustering and each object of observation was 
considered as a separate cluster. They show the extent which the 
rent-type economic systems differ to in the structure (set) of public 
policy mechanisms used therein. The most similar objects are 
Nigeria, Yemen, Zimbabwe: the square of the Euclidean distance 
between these groups is 2.00 and is the minimum among all other 
values of this indicator. The greatest difference is observed in 
such a pair as Russia and Yemen (16.00), which first proves the 
heterogeneity of the generalized models to be identified in them.

The optimal number of clusters is four as per the analysis of the 
dendrogram.

The preference of the chosen solution is proved by the correlation 
of the fullness of the clusters for various cluster solutions (from 3 
to 6) using the pivot table of frequencies.

It is possible to identify generalized models for the development of 
rental-type economic systems based on the analysis of the cluster 
end centers (Table 1).

Evaluation of the participation of mechanisms in the combination 
of development models allows us to conclude that most of them are 
important for at least one of the models. The mechanisms with a low 
contribution rate (from 0.1 to 0.3) include: “Distribution of a limited 
share of rental income (investment income) on a non-competitive 
basis,” “equalization of the margin” and “diversification of the 
economy via government intervention.” However, the exclusion 
of these mechanisms during the analysis may cause a distortion of 
the clarity of the contours of the selected models: they can play a 
secondary supporting role for a particular combination. At the same 
time, significant mechanisms of public policy can be divided into 
three groups depending on their frequency of use in various models:
• Basic mechanisms: frequency of use above 0.75;
• Add-on mechanisms: the frequency of use is more than 0.4, 

but <0.74;
• Mechanisms not involved: frequency of use is 0.

4.2. Experimental Results (Description of Generalized 
Models)
The analysis of the resulting combinations of mechanisms allows 
us to identify three generalized models for the development of 
rental-type economic systems with clear profile (Table 2):
• Model 1 “Development aimed at the creation of a strong 

diversified industrial complex”;
• Model 2 “Development supported by external support”;
• Model 3 “Maintenance of short-term macroeconomic and 

social stability, without development.”

The fourth group included countries with unique models or forming 
models that do not yet have a clearly defined development vector.

Model 1 “Development aimed at the creation of a strong diversified 
industrial complex.” The most effective state of the economic 
system within the framework of the model implementation was 
reached by Norway (Grytten, 2008) and the USA (Kapitsa, 2014; 
Engerman and Gallman, 1996). The profiles of the economic 
development of these countries clearly show the use of its 
own mineral resource base for the formation of a sustainable, 
diversified industrial complex producing high value-added 
products. At the same time, this development took place on the 
basis of a competitive market economy mode relying on private 
and public-private companies as the locomotives of the scientific 
and technological process (Ryazanov, 2011).

Three options of its development can be distinguished within the 
framework of this model:
1. Import-substituting approach: focus on meeting the needs 

of the domestic market via the development of national 
industries;

2. Export-oriented approach: recommended for small economies 
in the conditions of the inability to maintain high growth 
rates of domestic consumption in the long term, as well as 
the constraints arising while reducing costs for the cost of 
production, if production volumes meet domestic demand 
only;

3. Combined campaign: maintenance of the simultaneous growth 
of imports of products of the extractive industries and exports 
of products of the processing industry while maintaining its 
own resource base.

It should be noted that the development path of the Russian 
economic system also corresponds to the model in question, but 
does not ensure its transition to an effective state. It is advisable 
to look for the reasons for the current situation in the complex 
assessment of the balance of the Russian economic system.

Model 2 “Development supported by external support.” 
Examples of development as per Model 2 are Mexico, Indonesia, 
and Colombia. The most characteristic of the group is the 
economic portrait of Mexico demonstrating the management of 
the national system via the creation of favorable conditions for 
external influence, that is, from the developed countries of the 
world. Mexican experience shows that this path can provide a 
transition to an effective state of the economic system. Currently, 
the country’s economy is quite diversified, the oil rent from 2016 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201960

is a small share in GDP - 1,495%, comparable to the average 
world level (1,019%). For comparison, the level of the Russian 
Federation is 7.006% (WB, 2019). The results were achieved 
mainly due to a significant degree of openness of the economy. 
About 1/3 of Mexican exports now account for the production 
of about 3,000 enterprises of Makiladoras, including the world’s 
largest manufacturers of automobiles and electronics, which is 
more than 3 times higher than the volume of export earnings 
from the sale of crude oil (Spivak et al., 2017). The basis of 
the Mexican industry are the enterprises of free economic 
zones with a preferential customs regime for importing of the 
components from abroad and duty-free export of most of the 
manufactured products. Mexico also has a diversified agriculture 
(CC RF, 2019).

Indonesia has diversified its economy since the 1980s until now 
in a similar way. As part of the economic system, sustainable 
agribusiness and export-oriented industries were built via 
preferences from the United States and Japan, as well as the 

relocation of investment from the newly industrialized countries 
of East Asia in the 1990s.

Model 3 “Maintenance of short-term macroeconomic and social 
stability, without development.” This model predetermines the 
focus of the government policy on the maintenance of short-term 
macroeconomic stability of the system. This path is currently 
followed by countries such as Angola, Nigeria, Yemen. The use of a 
low-efficiency rent-forming resource for these countries has resulted 
in underdeveloped infrastructure, relative closeness of the economy, 
restriction of rights and freedoms, low investment attractiveness, 
and management of excess revenues in foreign markets without 
reinvestment in the domestic economy. A set of public policy measures 
aimed at containing social tensions in the current political cycle.

It is also interesting to emphasize that the creation of a subsidy 
system is not of a system-forming nature for the formation 
of generalized development models of the economic systems 
under consideration. Moreover, this mechanism is often 

Table 1: Identification of generalized models of development of rental‑type economic systems
Public policy mechanisms Cluster end centers

1 2 3 4
Without clear profile With clear profile

Unique models or 
forming models 

without a pronounced 
vector of development

Model 3
Maintain short‑term 

macroeconomic 
and social stability, 

without development

Model 2
Development 
with external 

support

Model 1
Development aimed 
at the creation of a 
strong diversified 

industrial complex
Sterilization of the economy 0.7 0.0 0.0 1.0
Limiting of budget dependence on rental income by 
reducing of production

0.0 0.0 0.9 0.3

Floating exchange rate 0.0 0.0 1.0 0.8
Distribution of a limited share of rental 
income (investment income) on a non-competitive 
basis

0.2 0.0 0.0 0.3

Margin alignment 0.2 0.0 0.0 0.1
Long-term contracts for rent-forming resource 0.3 0.0 0.4 0.7
Hedging of the price of a rent-forming resource 0.5 0.0 0.1 0.0
Denomination of debt in resource units 0.2 0.8 0.0 0.0
Provision of preferences for foreign companies 0.1 0.3 0.6 0.6
Export diversification (including raw material 
exports)

0.3 0.0 0.4 0.6

Development of non-primary (non-oil) economic 
relations

0.0 0.3 0.3 0.9

Centralization of the extractive industries, and then 
the resource industry as a whole (nationalization in 
extreme cases)

0.8 1.0 0.4 0.1

Diversification of the economy via government 
intervention

0.4 0.0 0.1 0.2

Creating of a subsidies system 0.5 0.0 0.3 0.4
Development of energy saving and energy 
efficiency policies

0.6 0.0 0.4 0.8

Fiscal mechanisms, namely discriminatory taxation 
and regulation

0.3 0.5 0.7 0.7

Import substitution policy and protection of 
domestic producers

0.2 0.0 0.1 0.6

Domestic price controls 0.2 0.5 0.3 0.1
Cartel agreements 0.1 1.0 0.0 0.0
Lending at lower rates to restore the economy 
secured by oil contracts (supported by oil supplies)

0.1 0.8 0.0 0.0

Source: Compiled by the author



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 61

counterproductive and hampers the development of the economic 
system. For example, Indonesia has developed a fuel subsidy 
system in the 1960s (Grigoriev et al., 2017b). The consequence 
of this measure was the irrational use of oil products. The same 
difficulties faced Saudi Arabia, Venezuela, and Norway at various 
stages of their development.

5. CONCLUSION

The conducted research allowed to draw a number of results and 
conclusions of theoretical and practical importance.

A cluster analysis was conducted on 20 mechanisms of state policy 
within the framework of rental-type economic system management 
based on the experience of 24 countries of the world, reflecting 
30 states of economies in various conditions of their operation.

The generalized models of the development of rental-type 
economic systems with clear profiles have been revealed:
• Model 1 “Development aimed at the creation of a strong 

diversified industrial complex”;
• Model 2 “Development supported by external support”;
• Model 3 “Maintenance of short-term macroeconomic and 

social stability, without development.”

A profile has been determined for each model based on the 
selection of sets of basic, superstructural and non-involved 
mechanisms of public policy. The backbone mechanisms for the 
identified models are the following ones:
• Model 1: Development of non-commodity relations, 

diversification of exports, including raw materials, long-term 
contracting, as well as measures for energy saving and energy 
efficiency;

• Model 2: Preferences for foreign companies and a floating 
exchange rate;

• Model 3: Centralization of the extractive industries, and then 
the resource industry as a whole (nationalization in extreme 
cases), as well as cartel agreements.

It should also be emphasized, including for the current and future 
development of the Russian economic system, that the creation 
of a subsidy system is not of a systemic nature, but only relevant 
to complementary (combining) mechanisms.

The approach suggested in the work allows to focus the developed 
perspective state policy within the framework of a certain concept 
of its formation. It is possible to determine an effective combination 
of mechanisms and identify the list of required adjustments in the 
system of state programs of the country based on the parameters 
of the identified development model.

Further areas of research for generalized models of the development 
of rental-type economic systems may be related to two areas:
• Description and systematization of sets of conditions which 

various generalized models of development of rental-type 
economic systems are formed and/or function under;

• Specification of the parameters of the models taking into 
account the various phases of economic cycles, for example, 
based on the delimitation of cases of periods of high and low 
world oil prices.

REFERENCES

Act. (1982), Organic Constitutional Law on Mining Concessions. Law 
No. 18.097. Available from: http://wwww.clc.to/eHRmrg. [Last 
accessed on 2019 Apr 09].

Act. (1983), Mining Code. Law No. 18.248. Available from: http://www.

Table 2: Description of the generalized model of development of rental‑type economic systems
Group of 
mechanisms 

Frequency 
of use

Model 1 Model 2 Model 3
Development aimed at the creation 
of a strong diversified industrial 
complex

Development with external 
support

Maintain short‑term 
macroeconomic and social 
stability, without development

Basic 
mechanisms

0.75 and 
more

Sterilization of the economy;
Development of non-commodity 
relations;
Energy saving and energy efficiency 
measures;
Floating exchange rate
Long-term contracting

Floating exchange rate;
Limiting of the dependence of 
the budget on rental income by 
production reducing

Centralization of extractive 
industries, and further resource 
industry in general (nationalization 
in extreme cases)
Cartel agreements

Add-on 
(if required)

0.4-0.74 Fiscal mechanisms (discriminatory 
taxation and regulation);
Export diversification, including raw 
materials;
Import substitution policy;
Provision of preferences for foreign 
companies

Provision of preferences for 
foreign companies;
Fiscal arrangements (tax 
mitigation for foreign 
companies)

Demonetization of debt in terms of 
resources
Crediting at lower rates for 
economic recovery (formal reason) 
secured by raw materials (oil) 
contracts

Mechanisms that 
are not involved

0 Monetary instruments Mechanisms that can 
adversely affect investment 
climate change

Mechanisms for structural change in 
the economy

Countries Australia, Norway, USA, Canada, 
Chile (until 2009), Bahrain, 
Kazakhstan, Russia

Mexico, Indonesia, 
USA (Alaska), UK, Sweden, 
Chile (since 2009), Colombia

Angola, Nigeria, Zimbabwe, Yemen

Source: Compiled by the author



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201962

clc.to/wsjNOw. [Last accessed on 2019 Apr 09].
Act. (1998), Petroleum Act 1998. Available from: https://www.clc.to/

UuLDQA. [Last accessed on 2019 Apr 12].
Alaska’s Constitution. (2019), Alaska’s Constitution: A Citizen’s Guide. 

5th ed. Anchorage: Alaska Legislative Affairs Agency. Available 
from: http://www.clc.to/X-xuxg. [Last accessed on 2019 Apr 03].

APFC. (2019), A Pioneering Investment Model, the Alaska Permanent 
Fund Corporation (APFC). Available from: http://www.clc.to/
kF0cSQ. [Last accessed on 2019 Apr 04].

Baldwin, R.E. (1956), Patterns of Development in Newly Settled Regions. 
Manchester School of Social and Economic Studies, 24, 161-179.

Baykova, E.R. (2013), State Regulation of Rental Relations. Ph.D Thesis. 
St. Petersburg State University of Economics.

Bekareva, S.V., Meltenisova, E.N., Guerreiro, A. (2018), Arctic energy 
resources as an economic growth factor: Evidence from Alaska, USA. 
International Journal of Energy Economics and Policy, 8(4), 1-12.

Bekturganova, M., Yessekina, B., Satybaldin, A. (2019), Conceptual 
framework for the formation of low-carbon development: 
Kazakhstan’s experience. International Journal of Energy Economics 
and Policy, 9(1), 48-56.

Biryukov, E.S., Biryukova, O.V. (2016), Special economic zones of the 
GCC countries. Asia and Africa Today, 11(712), 28-33.

Bobylev, Y.N. (2013), World Experience in Extractive Industry Taxation, 
Federal State Budgetary Educational institution of Higher Vocational 
Education Russian Academy of National Economy and State Service 
under the President Russian Federation. p14-15.

BP Statistics. (2018), BP Statistical Review of World Energy; 2018. 
Available from: http://www.clc.to/G4q2Xw. [Last accessed on 
2019 Apr 05].

Calder, J. (2014), Administering Fiscal Regimes for Extractive Industries: 
A Handbook. United States: International Monetary Fund. Available 
from: https://www.goo.gl/CZkWXh.

Caulfield, P. (2015), Government Launches New Strategy to Promote 
Canadian Mining Abroad, Canadian Mining and Energy. Available 
from: http://www.clc.to/kuBfnQ. [Last accessed on 2019 Apr 06].

CC RF. (2019), Mexican United States: Materials of the Chamber of 
Commerce of the Russian Federation. Available from: https://www.
goo.gl/v66GPT. [Last accessed on 2019 Jan 20].

CIO. (2017), Total State Budgeted Revenues and Expenditures for the 
Financial Years 2009-2016, Central Information Organization (CIO), 
Bahrain Open Data Portal. Available from: http://www.data.gov.bh. 
[Last accessed on 2019 Apr 01].

COCHILCO. (2019), Foreign Investment in the Mining Sector General 
Guidelines. Available from: http://www.clc.to/lhb7Ig. [Last accessed 
on 2019 Apr 07].

Corden, M., Neary, J.P. (1982), Booming sector and de-industrialization 
in a small open economy. Economic Journal, 92(368), 825-848.

De Oliveira, R.S. (2007), Business Success: Angola-style Postcolonial 
Politics and the Rise and Rise of Sonangol. Cambridge: Cambridge 
University Press. p595-619.

Decree. (2004), Decree of the President of the Republic of Azerbaijan 
of September 27, 2004, No. 128. On Approval of the Long-Term 
Strategy for Managing Oil and Gas Revenues. Available from: https://
www.goo.gl/f7nEeQ. [Last accessed on 2019 Feb 13].

Decree. (2014), Decree of the President of the Republic of Kazakhstan 
of August 01, 2014, No. 874. State Program of Industrial and 
Innovative Development of the Republic of Kazakhstan for 2015-
2019. Available from: http://www.clc.to/wU0wKQ. [Last accessed 
on 2019 Apr 02].

Dieterich, H. (2005), Hugo Chavez and Socialism of the 21st Century. 
Caracas: Pluto Press.

Ding, N., Field, B. (2005), Natural resource abundance and economic 
growth. Land Economics, 81(4), 496-502.

Economic Portal. (2019) Venezuela in the Modern World, Economic 
Portal. Available from: https://www.goo.gl/qP689U. [Last accessed 
on 2019 Mar 20].

EITI. (2017), The EITI Standard 2016. EITI, May 2017. Available from: 
https://www.goo.gl/PEMPFp.

EITI. (2019), Open EITI Data: Countries. EITI. Available from: http://
www.clc.to/HKg_yQ. [Last accessed on 2019 Mar 27].

Engerman, S.L., Gallman, R.E., editors. (1996), The Cambridge 
Economic History of the United States. Vol. 1-3. Cambridge, London: 
Cambridge University Press.

Farfan-Mares, G. (2010), Non-Embedded Autonomy: The Political 
Economy of Mexico’s Rentier State, 1970-2010. Ph.D Thesis. The 
London School of Economics and Political Science (LSE). р106. 
Available from: https://www.goo.gl/xxK1tp.

Foudeh, M. (2017), The long run effects of oil prices on economic growth: 
The case of Saudi Arabia. International Journal of Energy Economics 
and Policy, 7(6), 171-192.

Grigoriev, V. (2017a), Nigeria’s Forty Lost Years Managing the Resource 
Curse: Strategies of Oil-Dependent Economies in the Modern Era, 
Paper. Carnegie Endowment for International Peace. p149.

Grigoriev, V., Zotin, A., Movchan, A. (2017b), Fight Against Oil. 
Indonesia: Geopolitical Luck. Available from: https://www.goo.gl/
wXd6Hr.

Grytten, O.H. (2008), The Economic History of Norway, EH.Net 
Encyclopedia. March 16, 2008. Available from: https://www.goo.
gl/ACAYJW. [Last accessed on 2019 Feb 20].

Gylfason, T. (2007), The International Economics of Natural Resources 
and Growth. Munich, CESifo Working Paper Series No 1994. p25. 
Available from: https://www.goo.gl/odpB4Z.

Hertog, S. (2007), Shaping the Saudi state: Human agency’s shifting 
role in Rentier-state formation. International Journal of Middle East 
Studies, 39(4), 539-563.

Hiro, D. (2008), Blood of the Earth: The Global Battle for Vanishing Oil 
Resources. London: Politico’s. p424.

Hirshman, A.O. (1977), A generalized linkage approach to development, 
with special reference to staples. In: Hoselitz, B.F., Nash, M, editors. 
Essays on Economic Development and Cultural Change in Honor 
of Bert F Hoselitz. Chicago: University of Chicago Press. p67-98.

Hoekman, B., Martin, W., Primo, B., Carlos, A. (2009), Trade Preference 
Erosion: Measurement and Policy Response. Washington: World 
Bank. p121.

Holyavko, S. (2014), In: Kant, I., editor. Swedish Spatial Planning Model: 
Functions, Problems and Solutions. Bulletin of the Baltic Federal 
University. p159-168.

Howlett, M., Netherton, A., Ramesh, M. (1999), The Political Economy 
of Canada. An Introduction. Oxford: University Press.

IBM. (2009), IBM SPSS Statistics Base 23 (in Russ). IBM SPSS Statistics 
23 Documentation. p125, 61. Available from: https://www.clc.to/
nKi11Q.

IMF. (2018), Out of Recession and Looking Beyond Oil. Chile: IMF 
Country Focus. March 2018. Available from: https://www.goo.gl/
pvMfaa.

Innis, H.A. (1954), The Cod Fisheries: The History of an International 
Economy. Toronto: University of Toronto Press.

Kapitsa, L.M. (2007), Resource rent for development: Foreign experience. 
World and National Economy, 2(3), 42-60.

Kapitsa, L.M. (2014), Natural Resources and Socio-economic Progress. 
Vol. 4. Russia: Vestnik MGIMO Universiteta. p168-186.

Khlopov, O. (2015) Energy Security of the United States: New Issues 
and Challenges. Russia: Herald Russian State University for the 
Humanities. p134-144.

Kimelman, S. (2011), Neo-industrialization is hindered by a Rentier state. 
The Economist, 8, 18-26.



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 2019 63

Korolkova, N.A. (2018), Identification of the Generalized Models of 
Development of Economic Systems of Rent Character on the Basis 
of the Retrospective Analysis of International Experience. Scientific 
Review. Series1. Economics and Law. The Magazine is a Peer-
reviewed. p67-75.

Krugman, P.R. (1987), The narrow moving band, the Dutch disease and the 
competitive consequences of Mrs. Thatcher. Journal of Development 
Economics, 27, 41-55.

Kudrin, A.L., Sokolov, I.A. (2017), Budget rules as a tool for a balanced 
budget policy. Economic, 11, 5-32.

Leary, J., Kerrigan, G. (2018), Mining Australia. Mining Law Review. 
7th ed. United Kingdom: Law Business Research Ltd. Available from: 
https://www.clc.to/PzHfCg.

LovData. (2016), LOV-2005-12-21-123 Act on the Government Pension 
Fund. Available from: http://www.clc.to/X6XN2w.

Mahdavy, H. (1970), The Pattern and Problems of Economic Development 
in Rentier States: The Case of Iran. Oxford: Oxford University Press. 
Available from: https://www.goo.gl/kWixqB.

Manasseh, C.O., Abada, F.C., Ogbuabor, J.E., Okoro, O.E., Egele, A.E., 
Ozuzu, K.C. (2019), Oil price fluctuation, oil revenue and well-being 
in Nigeria. International Journal of Energy Economics and Policy, 
9(1), 346-355.

Matsuyama, K. (1992), Agricultural productivity, comparative advantage, 
and economic growth. Journal of Economic Theory, 58, 317-334.

Mehlum, H. (2005), Institutions and the resource curse. Economic Journal, 
116(508), 1-20.

Mihin, V. (2018), Prosperous Kuwait economy in a turbulent world, 
Geopolicy. Available from: http://www.clc.to/V5ZwCw. [Last 
accessed on 2019 Apr 07].

MNRW-TF. (2014), Sovereign Asset-Liability Management Guidance for 
Resource-Rich Economies: Policy Papers. MNRW-TF, June 2014. 
Available from: https://www.goo.gl/sisJKk.

MNRW-TF. (2016a), Assisting Resource Rich Countries Mobilise and 
Manage their Revenues: Report. MNRW-TF, September 2016. 
Available from: https://www.goo.gl/exxHXd.

MNRW-TF. (2016b), Program document of the Managing Natural 
Resource Wealth Trust Fund: Report. MNRW-TF, November 2016. 
Available from: https://www.goo.gl/tPyqXM.

MNRW-TF. (2016c), Fiscal Analysis of Resource Industries (FARI) 
Methodology. MNRW-TF, February 2016. Available from: https://
www.goo.gl/R2qA8C.

MNRW-TF. (2018), Annual Report, FY2018. MNRW-TF, June 2018. 
Available from: https://www.goo.gl/4HRtgK.

Moosmyuller, G., Rebik, N.N. (2015), Marketing Research in SPSS: 
Study Guide. 2nd ed. Moscow: INFRA-M. p98.

Movchan, A. (2017), Managing the Resource Curse: Strategies of Oil-
Dependent Economies in the Modern Era. Carnegie Endowment for 
International Peace. United Arab Emirates: Sovereign Liberalism. 
p109-126.

MTIF. (2015), The State Ownership Report 2015, Norway Ministry of 
Trade, Industry and Fisheries (MTIF). Available from: https://www.
goo.gl/zsyQ1S.

MTIF. (2019), The Petroleum Tax System 2019, Norway Ministry of 
Trade, Industry and Fisheries (MTIF). Available from: https://www.
goo.gl/wXELVt. [Last accessed on 2019 Apr 01].

Neftegaz. (2017) We Need Urgent Measures. If you do not stimulate the 
Oil Industry, Colombia will not be Able to Fully Provide Itself with 
Oil in 4 Years, Neftegaz.ru. June 6, 2017. Available from: http://
www.clc.to/COd9sQ. [Last accessed on 2019 Apr 12].

Niko, A.H., Borgne, E.L., Aturupane, C., Gvenetadze, K., Wakeman-
Linn, J., Danninger, S. (2014), Managing Oil Wealth: The Case of 
Azerbaijan, IMF Special Issues. Available from: https://www.goo.
gl/xGWPVY.

Nikolaeva, L. (2018), Copper industry in Chile is a platform for innovation 
development. Latinskaia Amerika, 11, 63-73.

NRCan. (2015), Delivery of ecoENERGY Efficiency Program (AU1509), 
Natural Resources Canada (NRCan). Available from: http://www.
clc.to/JpMnlA. [Last accessed on 2019 Apr 06].

Polterovich, V., Popov, V. (2003), Accumulation of Foreign Exchange 
Reserves and Long Term Growth. New Economic School. MPRA 
Paper No. 20069. Available from: https://www.goo.gl/Y8McNd.

Polterovich, V., Popov, V. (2005), Appropriate Economic Policies for 
Different Stage of Development. New Economic School. MPRA 
Paper No. 20066. Available from: https://www.goo.gl/eH2wvK.

Polterovich, V.M., Vladimir, P. (2007), Economic Policy, the Quality 
of Institutions and Mechanisms of the Resource Curse. Moscow: 
Publishing House of the State University Higher School of 
Economics. p98.

Prebisch, R. (1950), The economic development of Latin America and its 
principal problems. Economic Bulletin for Latin America, 7, 1-12.

Program Document. (2016a), Saudi Vision 2030. Available from: https://
www.goo.gl/abx5iA.

Program Document. (2016b), National Transformation Program 2020. 
Available from: https://www.goo.gl/N7PQPZ.

Program Document. (2017), Program U.S. Generalized System of 
Preferences: GUIDEBOOK, March 2017. Available from: https://
www.goo.gl/whcKia.

PWC. (2015) Doing Business in the UAE: A Tax and Legal Guide. 
Available from: https://www.goo.gl/rHuUBe.

Rainer, E.S. (2011), How Rich Countries have Become Rich, and why 
Poor Countries Remain Poor. Moscow: Moscow Publishing House 
of the State University Higher School of Economics.

Reports and Statistics. (2019) State Oil Fund of the Republic of 
Azerbaijan. Available from: https://www.goo.gl/4TU8X2. [Last 
accessed on 2019 Mar 26].

Robinson, J.A., Torvik, R., Verdier, T. (2006), Political foundations of the 
resource curse. Journal of Development Economics, 79, 447-468.

Rodrik, D. (1996), Coordination failures and government policy: A model 
with applications to East Asia and Eastern Europe. Journal of 
International Economics, 40, 1-22.

Ryazanov, V.T. (2011), Economy of Rental Relations in Modern Russia. 
Christian Reading, No. 4(39). p149-176.

Salitsky, A.I., Yurtaev, V., Zhao, X. (2017), Sanctions and import 
substitution on the example of the experience of Iran and China. 
Herald of the Russian Academy of Sciences, 87(3), 263-271.

Sergeyev, V.M., Sarukhanyan, S.N. (2012) White Revolution: Failure of 
Modernization from Above. Politia, No. 3(66). p132-145.

Singer, H.W., Meier, G.M. (1958), The Terms of Trade and Economic 
Development: Comment. Review of Economics and Statistics, 40, 
85-90.

Spivak, V. (2017), Resource Curse: Kazakhstan, Mexico and Indonesia. 
Available from: https://www.goo.gl/LZAvqV.

Strong, C.H. (2018) The Oil and Gas Law Review. 6th ed. Iraq: Law 
Business Research Ltd. Available from: http://www.clc.to/QXkljw.

Sweden Parliament. (2019), Forest Care Act (1979: 429), Sweden 
Parliament. Available from: https://www.clc.to/l00Ycw. [Last 
accessed on 2019 Apr 11].

Thurbera, M.C., Hults, D.R., Heller, P.R.P. (2011), Exporting the 
Norwegian model: The effect of administrative design on oil sector 
performance. Energy Policy, 39(9), 5366-5378.

Vahab, A.S.H. (2013), Structural changes and development of the oil and 
gas complex of Yemen. Socio Economic Phenomena and Processes, 
6(52), 44-48.

Vorobyov, M. (2006), The Role of the State in Overcoming the Resource 
Curse. NES Master Thesis.

Vukolov, E.A. (2013), Basics of Statistical Analysis. Workshop on 



Matraeva and Korolkova: Identification of Generalized Models of Development of Economic Systems of Rental Character Based on the Retrospective Analysis of 
World Experience

International Journal of Energy Economics and Policy | Vol 9 • Issue 6 • 201964

Statistical Methods and Operations Research Using STATISTICA 
and EXCEL: Study Guide. Moscow: FORUM. p291.

WB. (2019), Oil Rents (% of GDP), Mexico, World, Russian Federation, 
1970-2016, World Bank Open Data (WB). Available from: https:/
www./goo.gl/FizWTs. [Last accessed on 2019 Jan 20].

WIPO. (1962), Kuwait’s Constitution of 1962, World Intellectual Property 
Organisation (WIPO). Available from: http://www.clc.to/roTsUg. 
[Last accessed on 2019 Apr 07].

Yergin, D. (2017), In Search of Energy: Resource Wars, New Technologies 
and the Future of Energy. Moscow: Alpina Publishing. p1110.

Zapata, J.V., Ricciulli, C.M.C. (2018), The Oil and Gas Law Review. 
6th ed. Colombia: Law Business Research Ltd. Available from: http://

www.clc.to/QXkljw.
Zhukova, N. (2006), The Abundance of Natural Resources and Economic 

Growth: The Role of Institutions. NES Master Thesis.
Zotin, A. (2017a), Oil Plus Socialism, Managing the Resource Curse: 

Strategies of Oil-Dependent Economies in the Modern Era. 
Venezuela: Carnegie Endowment for International Peace. p22.

Zotin, A. (2017b), Geopolitical Luck, Managing the Resource Curse: 
Strategies of Oil-Dependent Economies in the Modern Era. 
Indonesia: Carnegie Endowment for International Peace. p82.

Zotin, A. (2017c), The Fruits of Isolation, Managing the Resource Curse: 
Strategies of Oil-Dependent Economies in the Modern Era. Iran: 
Carnegie Endowment for International Peace. p127-139.