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Rentier 2.0: Entrepreneurship Promotion and the (Re)Imagination of Political Economy in the Gulf Cooperation Council Countries

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Rentier 2.0: Entrepreneurship Promotion and the (Re)Imagination of Political Economy in the Gulf Cooperation Council Countries Rentier 2.0: Entrepreneurship Promotion and the (Re)Imagination of Political Economy in the Gulf Cooperation Council Countries by Crystal A. Ennis A thesis presented to the University of Waterloo in fulfilment of the thesis requirement for the degree of Doctor of Philosophy in Global Governance Waterloo, Ontario, Canada, 2013 © Crystal A. Ennis 2013 Author’s declaration I hereby declare that I am the sole author of this thesis. This is a true copy of the thesis, including any required final revisions, as accepted by my examiners. I understand that my thesis may be made electronically available to the public. ii Abstract This dissertation provides an examination of the recent phenomenon of entrepreneurship and innovation promotion in the Gulf Cooperation Council (GCC) countries. Through the use of the structured, focused comparison method, this research examines two cases, Oman and Qatar, to provide a deep analysis of the policy and practice of entrepreneurship promotion in the region. Despite a claim of responding to regional challenges of economic diversification and the weak participation of nationals in the private sector, entrepreneurship as a key component of each country’s quest for a knowledge economy seems paradoxical in its ostensible inconsistency with the Gulf rentier state status quo. Path dependencies from oil‐led development and the concomitant labour market bifurcation have perpetuated incentive structures which obstruct innovation and entrepreneurialism. Responding to this puzzle, this research answers two questions. The first is concerned with the character and motivation of these strategies in the Gulf, and what that reveals about the evolution of policy making practices. The second assesses the role of the millennial generation and regional transformation. Through interrogating the entrepreneurship policy experience in the case studies, this research extends beyond the often perfunctory assumptions of rentier state literature to investigate the unfolding of development policies in the current milieu. This research finds that entrepreneurship promotion risks only becoming a new way of recasting rentier tools: rentierism 2.0. The study argues that governance in the Gulf is best understood as a contestation between reforms and rentier patterns. Being cognizant of this tension provides a venue for understanding how some policies contravene classic rentier expectations while others appear hypocritical as the implementation of policy announcements become obstructed by structural contradictions. This dissertation makes an empirical contribution on a prominent policy shift in the Gulf that has been largely ignored in social sciences. As well, it provides a theoretical contribution by integrating literature on development and innovation which is generally disconnected from scholarly work on Gulf political economy to deepen understandings of development and transition in the region. Overall, this project provides a window into transition and transformation, demonstrating the way rentier patterns and a combination of novel pressures interact and affect the practices of development policy making and the Gulf ruling bargain. iii Acknowledgements My journey toward this project began first and foremost because of my students at Shinas College of Technology in the Sultanate of Oman. During my time teaching and building a new department there, I met hundreds of young people, listened to their hopes and dreams for the future and heard their struggles. The challenges they faced combined with the struggles they relayed from their families are part of what inspired my interest in development questions in the country and region. I am indebted to them. I am especially grateful to my friends among the staff, faculty, and my neighbours in Sohar who welcomed me into their lives, their homes, and their communities. I learned a great deal about society from those years, and the connection I feel with Oman rivals no other foreign country. It was only natural that my dissertation research began there. A great deal of gratitude needs to be expressed to my PhD supervisor, Dr. Bessma Momani, for her ongoing support throughout this process. She has consistently been available for discussions, and has been a constant source of motivation, support, and encouragement. She has been a great advocate on my behalf. It has been a true pleasure to work with her on this and other projects. I would also like to thank my other committee members, Dr. Kathryn Hochstetler and Dr. Nathan Funk for their continuous support. Professor Hochstetler has added invaluable insights to the comparative theoretical contribution of this work, and has helped strengthen my arguments. I am grateful to Dr. Funk for his unique take on my project, and the times he reminded me of the initial inspiration for the project and my first impressions in the field. This undoubtedly helped me keep focused on the story I wanted to tell. I also wish to thank Dr. Toby Craig Jones and Dr. Stephen Quilley for their insightful feedback on my work. This project owes a lot to my many research participants, most of whom will remain unnamed. I especially want to thank Ms. Aziza Al‐Ghafri, for all her support and networking during my research in Oman and ultimately her friendship. Dr. Dennis Powers, Dr. Hatem El‐Masri, and Dr. Abdallah Omezzine ought to be thanked for their role in hosting me as a visiting researcher at the University of Nizwa. I would also like to thank Mr. Sabir Al‐Harbi and Sheikh Salah Al‐Maawali for all their assistance. In Qatar, I am particularly grateful to iv Dr. Marios Katsioloudes who provided invaluable assistance throughout my research visits, from research contacts to accommodation. Many thanks to ‘Amo Muhammad who I met by chance and provided both interesting insights and excellent introductions. As well, thanks go to Professor George White at Carnegie Mellon University for our thoughtful exchanges and his helpful contacts. In both countries, the entrepreneurs, aspiring entrepreneurs, public servants, and the teams at the many entrepreneurship initiatives and innovation programmes provided indispensable insight and support. I am abundantly grateful to my very many anonymous participants. My colleagues Warren Clarke, Lucie Edwards, David Kempthorne, Branka Marijan, and Manjana Milkoreit, who joined this doctoral challenge with me and proceeded through the many phases together, deserve special thanks. Their support and friendship has made the journey all the more meaningful. I am sincerely appreciative of the intellectual and collegial environment we encountered in the Global Governance programme created by the incredible faculty members and other graduate students. April Wettig has been a saving grace throughout the entire PhD process, and deserves a world of thanks for her constant assistance. As well, Dr. Andrew Thompson has provided a great deal of guidance and support throughout the years for all the PhD students. The Social Science and Humanities Research Council of Canada, the Balsillie School of International Affairs, and the University of Waterloo provided the necessary funds, without which this project would not have been possible. Finally, my family has been an amazing centre of encouragement. I could always count on my mother to cheer me on and my father to keep me grounded in gratitude and hope. My sister Tawnya has listened to it all, from joyful moments to complaints and worries, and ensured I could continue to laugh. I am equally grateful to Lucy and to Dominic as well as my siblings Shaylyn, Vince, Sarah, Lisa, and David. Family and friends keep you grounded during the doctoral years. Special thanks to Amber, Emily, Rachelle, Remy, and Tricia. Last but in no way least, I must thank my partner Ra’id who entered my life at just the right moment and has proved a consistent source of love, care, and support. This project is richer because of his soulful encouragement and intellectual insight. v Dedication To my parents, who, in equipping me with critical thinking skills and encouraging me to challenge norms and question authority, prompted my intellectual curiosity that led me to academia. vi Table of Contents Author’s declaration ......................................................................................................................... ii Abstract ................................................................................................................................................ iii Acknowledgements .......................................................................................................................... iv Dedication ........................................................................................................................................... vi List of Figures ....................................................................................................................................... x List of Tables ....................................................................................................................................... xi List of Abbreviations ....................................................................................................................... xii Chapter 1 Introduction .................................................................................................................... 1 1. Introduction............................................................................................................................................. 1 2. National
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