The lure of patrimonialism and rentier capitalism: The fragile equilibrium of liberal-market economies

The paper analyses the concept of rentier capitalism and its relevance for the degeneracy of contemporary economies. It analyses the variety of institutional frameworks in which rentier capitalism is embedded and proposes some simplified taxonomy. The notion of rentier capitalism is defined in relation to the phenomenon of patrimonialism. These notions are related to the underlying principles and mechanisms as well as at the different forms of social corruption such as client-patron relationships and patrimonialism. Rentier capitalism is contrasted with an ideal inclusive form of capitalism embedded in a Weberian form of state. It is also referred to different contemporary models of state-economy relationships. Finally, the paper considers the policy dimension dealing with how to limit these undesirable forms of capitalism, pointing at the requirements of a strong and limited state.