Rent distribution, labour markets and development in high rent countries

This paper argues that hydrocarbons producers with high rents per capita constitute a specific category in the broader universe of rent-dependent countries, facing a specific set of development challenges that are not shared by mid-rent countries (MRCs). The paper surveys patterns of rent distribution in high-rent countries (HRCs), focusing on energy subsidies and excessive public employment, and analyses their developmental consequences. It then proposes unconditional cash grants for HRC citizens in combination with energy subsidy and public employment reform as a mitigation strategy to minimise HRC-specific negative effects of rent distribution.