Cambridge Catalog  
  • Your account
  • View basket
  • Help
Home > Catalog > Oil Is Not a Curse
Oil Is Not a Curse
AddThis

Details

  • 16 b/w illus. 5 maps 24 tables
  • Page extent: 446 pages
  • Size: 234 x 156 mm
  • Weight: 0.61 kg
Add to basket

Paperback

 (ISBN-13: 9780521148085)

Manufactured on demand: supplied direct from the printer

$35.99 (P)
Oil Is Not a Curse
Cambridge University Press
9780521765770 - Oil Is Not a Curse - Ownership Structure and Institutions in Soviet Successor States - By Pauline Jones Luong and Erika Weinthal
Index

Index

ACG PSA, expenditures by 233–34

Achncarry Agreement (“As Is” system) 205n. 33

Adams, Terry 244–45, 254–55

Africa

petroleum reserves in 202, 209

taxation in mineral-rich rentier states of 332–33

Agip Kazakhstan North Caspian Operating Company 265, 265n. 15

Agricultural Development Fund (ADF), (Turkmenistan) 100–05

agricultural sector

in Azerbaijan 237–42, 307n. 5

in Kazakhstan 269–74, 305–06

in Russia 149

in Turkmenistan 90, 99–100

in Uzbekistan of 90, 99–100, 110–14

Alekperov, Vagit 24–25

Aleskerov, Valekh 225, 244–45

Algeria 207n. 37

Aliyev, Heydar 222, 225n. 13, 227, 239–42, 241n. 36, 246–52

Aliyev, Ilham 219, 249–50

Alt, James 9n. 7

American Independent Oil Company (AMINOL) 190

Amoco, merger with BP 209n. 40, 252–53

Anglo-Iranian Oil Company 205

Angola, petroleum industry in 192, 201, 311, 311n. 11

Arabian Oil Company 183n. 7

Aramco, Saudi Arabia contract with 190, 196–97, 199n. 26

Arch of Neutrality (Turkmenistan) 104

ARCO oil company 202–03, 203n. 31

Argentina 326n. 2

Arkhangelskgeologia oil company 131n. 11

Armenia, Azerbaijani war with 236n. 29

Asanbayev, Yerik 269

Asia Barometer Survey 107–08, 110–14

Atyrau Bonus Fund Program 274–81

authoritarian regimes

mineral rents and 32–33, 34–38, 43–44, 331–35

in mineral-rich states 2, 327–30

resource curse thesis and 323–27

societal expectations and 58–70

in Turkmenistan and Uzbekistan 81–87

See also ownership structure

See under state-run government structures

Auty, Richard 75

Azerbaijan

agricultural production in 307n. 5

coercion in 252–56

distributional conflict in 307

expenditures in 220–22, 233–37

foreign investment in 202n. 30, 218–258, 219

hybrid fiscal regime in 220–22, 226, 256–58

integrated pipeline systems in 26n. 26

mineral sector taxation in 226–29

nationalization of petroleum by 219n. 1

natural resource fund in 220–22, 227–29, 246–52, 331–32

non-mineral sector expenditures and taxation in 229–33, 242–44

oil reserve estimates in 25–26

ownership structure in 19n. 14, 19–27

petroleum wealth in 20–27, 24n. 22, 24n. 23

production-sharing agreements in 138n. 33, 222n. 6, 222n. 8, 222–26

SOCAR expenditures in 237–42

societal expectations in 246–52

SOFAZ expenditures in 237–42

state ownership without control (S2) in 119–20, 123n. 1, 219–58

transaction costs 244–45

Azerbaijani Charity Fund 235

Azerbaijan International Operating Company (AIOC) 222n. 6, 222–26, 225n. 12, 226n. 14, 227n. 15

coercion and 252–56, 254n. 49

expenditures by 233–37

tax policy for 227

Azerineft 224–26

Azizbekov Institute of Oil and Chemistry 24–25

Azneftkimiya 224–26

Bagirov, Sabit 244–45

“Baikalfinansgroup,” 131n. 12, 131–32

Baku oil fields 221

history of 24n. 22, 24–25

Balgimbayev, Nurlan 260, 265–66, 295–96

banking reforms, Russian private sector growth and 148–49

bargaining

implicit vs. explicit 71

lack of transparency in 72

ownership structures and 70–71

See also explicit bargaining, implicit bargaining, obsolescing bargain theory

Bashneft oil company 129–31

behavioral economics

state ownership with control and 51–55

transaction costs and 50n. 11, 50–58

Berdimuhammedov, Gurbanguly 119

Berezovsky, Boris 128–29

Blair, Tony 181

Bolivia 238, 326n. 2, 331n. 8

Bolshevik Revolution, history of petroleum production and 24–25, 221

bonuses, in production-sharing agreements (PSAs) 191n. 16

boom and bust cycles

domestic private owners’ behavior during 70

Dutch disease and 327–30

excess profits taxes and 67–68

fiscal regime stability and 48–49

foreign investment vulnerability to 208

Kazakhstan coercion of foreign oil companies during 293–96

in petroleum industry 20–21, 21n. 16

public spending and societal expectations and 60–61, 64

in Russian gas sector 172

Botswana 123n. 1

developmental exceptionalism of 3

economic growth in 2–3, 330n. 7

“Boycott Shell” campaign 200–01

Brazil, private domestic ownership in 46n. 3, 121

Bridas oil company 78n. 3, 82–83

British Gas(BG)/Agip 265–69, 274–75, 293

British Petroleum (BP)

in Azerbaijan 219, 221n. 4, 224, 227, 247–48

coercion in Azerbaijan and 252–56

corporate social responsibility and 211

Enterprise Center established by 233n. 22, 233–34, 235–37

expenditures in Azerbaijan by 234n. 23, 234n. 24, 234, 235

foreign investment activities of 182, 183n. 6, 201–02, 205

hybrid fiscal regime in Azerbaijan and 256–58

international NGO collaboration with 235–37

merger with Amoco 209n. 40, 252–53

Russian investment by 129–31

broad-based tax systems, revenue generation from 34–38

Bromley, Daniel 10

Browne, John 247–48

brown fields 261–63, 263n. 4, 263n. 5

Brunnschweiler, Christa N 329–30

Buckee, Jim 181

budgetary stability and transparency

in Azerbaijan 220–22, 226–33, 242–44, 252–56

expenditures 39–43

extrabudgetary funds and 100n. 43, 100–05

foreign investment influence on 208–15

implicit bargaining and 114–16

in Kazakhstan 266–69, 274–84

National Fund of the Republic of Kazakhstan and 278–81

private domestic ownership and 57–58, 66–67

Russian budgetary surplus policy and 122–24, 138–52, 161–63, 165–68, 177–80

SOCAR expenditures 237–42, 240n. 35

societal expectations of foreign investment and 200, 201–04

SOFAZ expenditures 237–42, 240n. 35

Turkmenistan/Uzbekistan comparisons 80–81, 88, 114–16

Bush, George H. W 61n. 26

Business Development Alliance 233n. 22, 235–37, 236n. 28

Business Environment and Enterprise Performance Survey (BEEPs) 117, 117n. 59–116

capital investment patterns

in mineral-rich states 6

national oil companies and 54–55, 55n. 19

CARE relief organization 237

Caspian Basin, petroleum reserves in 22n. 18, 22–23, 209

Caspian Development Advisory Panel (CDAP) 235

Caspian International Petroleum Company 253–56

Central Asia Petroleum 264

central bank financing, in Turkmenistan/Uzbekistan 95

central planning

in mineral-rich states 6

retention in Turkmenistan/Uzbekistan of 96

Uzbekistani popular support for 110–14

Chad-Cameroon Oil and Pipeline Project 40, 215, 215n. 44

Chavez, Hugo 54, 76

control of petroleum industry by 54–55

Chernomyrdin, Viktor 132n. 17, 132–34, 133n. 19

Cheung, S 50n. 12

Chevron 183n. 6

Kazakhstan investments by 263, 266–69

merger with Texaco 209n. 40

Chile 2–3, 123n. 1, 182n. 1

China

foreign investment in petroleum by 203

fuel subsidies in 52

information asymmetry in 71n. 34

mineral development delay and internal consumption in 47

ownership structure in 182n. 1

China National Offshore Oil Corporation 293

China National Petroleum Corporation (CNPC) 86–87, 203, 211, 263–64, 264n. 11, 293–96

claimant status

of domestic private owners (DPOs) 55–58

foreign investment and societal expectations and 195–204

ownership structures and 10

power relations and 70–76, 204–15

societal expectations and 58–70

of state ownership structures 208

transaction costs and 51–55, 189–94

CNPS-Aktobemunaigas 292

Coase, Ronald 50, 50n. 10

coercion

Azerbaijan and foreign oil companies 220, 252–56, 254n. 49

Kazakhstan and foreign oil companies 293–96

ownership structures and 70–71, 204–15

collective action problem (CAP)

in Azerbaijan 252–56

in Kazakhstan coercion 291–96

power relations in foreign investment and 211n. 42, 211–12

power relations with foreign investors 188–89

collusion

See intra-elite agreements

colonialism

domestic politics and ownership structures in 300–01

ownership structure preferences and 309–16

path dependency of ownership structure and 315, 315n. 16

resource curse thesis in context of 6–7

commercial banking, Russian oil sector privatization and 127–32

common property resources (CPRs), resource curse thesis concerning 27–28

Commonwealth of Independent States (CIS)

countries in 17n. 10

foreign investment in 202n. 30

map of 5

oil and gas production and proven reserves in 17, 22–23

petroleum wealth and fiscal regime in 16–27

See also Russia, Soviet successor states

Compañia Venezolana de Petróleo 46n. 5

concession agreements

foreign investment in petroleum and 190, 190n. 10, 191n. 14

independent petroleum contracts and 206–07

private foreign ownership and 305

Conoco oil company 131n. 11

constitutional reforms

in Turkmenistan 81–84

in Uzbekistan 85–87

constraint mechanisms, on competition, foreign investment use of 205, 205n. 33

consumer subsidies

in Kazakhstan 282–83

Russian economic reforms and reduction of 149

in Turkmenistan 101, 102n. 44

in Uzbekistan 102–04

“Contract of the Century,” 222–26, 247–48

contractual relations

in Azerbaijan 224–26, 225n. 13, 244–45, 252–56

foreign investors and host countries 42–43, 189–94

historical context for 206

institutional outcomes and 70–76

in Kazakhstan 285–86, 291–96

obsolescing bargain theory and 207–08

transaction costs and 50n. 12, 50–58, 285–86

cooperative agreements

consortia building in Azerbaijan and 252–56

power relations in foreign investment and 209

corporate income taxes (CIT)

in Azerbaijan 228–33, 230n. 18

in Kazakhstan 269–74

mineral-rich and rentier states and 331–35

in production-sharing agreements (PSAs) 191n. 16

in Russia 135n. 26, 137n. 30, 137–44, 140n. 36, 167–68

state-owned enterprises and 36n. 8, 36–38

corporate social responsibility (CSR)

Azerbaijan foreign investment and and 220–22, 235–37, 252–56

of domestic private owners 68–69

by Gazprom 169–72

historical context for 28

international norms of 14–16

in Kazakhstan 293–96

model contracts and 187–89, 193–94, 210–15

origins of 193n. 21

ownership structures and 48, 48n. 9

proxy state creation and 217–184

Russian oil companies’ attitudes concerning 163n. 66, 163–65, 164n. 67, 164n. 68

societal expectations of foreign investment and 199n. 26, 199–204

in Turkmenistan 87

Uzbekistan foreign investment and lack of 87, 119–20

Corruption Perceptions Index (CPI) 17n. 12, 17–19, 118n. 62

in Kazakhstan 296–98

cost oil

private foreign ownership and 305, 305n. 4

in production-sharing agreements 191n. 16

cotton exports

extrabudgetary funds and 100n. 43

production quotas and price controls in 90

in Turkmenistan 88n. 30, 99–100

Uzbekistan reliance on 80, 89–90, 99–100, 116, 303–04

crude oil, commodity trading activity of 23n. 19

cult of personality, Niyazov’s establishment of 81–84

D’Arcy Concession 190, 190n. 10

dataset characteristics

ownership structure in petroleum-rich countries 309–16, 310n. 6, 310n. 8

ranking basis for countries 357

resource curse thesis and 323–27

wealth and path dependence and 327–30

debt burden

mineral sector taxation and 34–38

Russian expenditure reforms and 145–46

debt service payments, extrabudgetary funds for 100–05

decision-making by elites

Azerbaijan non-mineral sector expenditures and 242–44

in Kazakhstan 259–98

ownership structures and 75–76

SOCAR expenditures and 239–42

transaction costs and 51, 51n. 13

See also governing elites

See under sovereign decision-making

deficit spending, Russian fiscal regime and 135

demand

institutions as product of 11–13

Democratic Republic of Congo 52

democratization

absence in Turkmenistan/Uzbekistan of 118, 118n. 63

mineral-rich rentier states and 331–35

resource curse thesis and 323–27

revenue generation 31–32

deregulation of business, Russian economic growth and 148–49

developing countries

domestic politics and ownership structures in 300

history of foreign investment in 190

international norms concerning involvement in 206–07

mineral abundance in 1–4, 75

ownership structure variation in 345

private domestic ownership in 70n. 33

societal expectations of foreign investment in 195–204

sovereign decision-making criteria in 311–12

direct distribution schemes 208–15

direct taxation 33–34, 34n. 3

Azerbaijan non-mineral sector 229–33

constraints on state from 34–38, 35n. 6

economic growth and state-owned enterprises and 63

in mineral-rich countries 37n. 9

rentier states and 332–33

Russian tax reform and 140–44

in Turkmenistan/Uzbekistan 93

distributional conflict

international diffusion effect 314n. 13

in mineral-rich states 32–33

non-petroleum alternative revenues and 312–13

ordinary least squares (OLS) model and 316n. 19, 316–19

ownership structure and 301–09, 319–21

regime type and 316, 316n. 18

in rentier states 334–35

Doing Business in 2005 117–18

Doing Business in 2006 119n. 65, 232–33

Doing Business in 2007 119n. 65

domestic constraints, absence in mineral-rich states of 6

domestic private owners (DPO)

See under private domestic ownership structure (P1)

Dubov, Vladimir 166–67

Dunning, Thad 334–35

Durán, Esperanza 63

Dutch disease

effects in Russia of 122–24

export collapse and 2

National Fund of the Republic of Kazakhstan and 278–81

SOFAZ expenditures and 239–42

state ownership with control and 63

wealth and dependence and 327–30

Early Oil Project (Azerbaijan) 234

East Asian economic growth, mineral-rich states compared with 75–76

“East Asian tigers,” import substitution and 63n. 30, 316

economic development

Gazprom’s role in 177

government legitimacy tied to 75–76

human capital development 34

Kazakhstan expenditures and 274–81

mineral development delay and internal consumption and 47

multistakeholder approach to 208–15

natural resource funds and 41–42

ownership structures and 316

path dependency and 327–30

resource curse thesis and 3–4, 323–27

revenue generation and 31–32

in Russia 123n. 2, 140–44, 159, 174, 174n. 79, 178n. 83

state role in 62–64

in Uzbekistan 110–14

Ecuador

Amazon for Life campaign in 195n. 24

democratization and petroleum wealth in 326n. 2

foreign investment in petroleum in 202–03, 203n. 31

fuel subsidies in 238

rent-seeking behavior in 64

education spending

Azeribaijan foreign oil company expenditures on 235

by Gazprom 169–72

Kazakhstan foreign oil company expenditures on 274–81

by Russian oil companies 164n. 69

in Uzbekistan 102–04, 103n. 45, 104n. 46

Elchibey, Abulfez 224, 224n. 9

employment

Azerbaijan expenditures outside mineral sector 242–44

Russian expenditure declines and 147

Russian public opinion concerning state role in 159

SOCAR (Azerbaijan) labor productivity and 238–39, 239n. 31

in Turkmenistan/Uzbekistan 117–18, 119–20

energy rents

in Soviet successor states 78–79

Turkmenistan/Uzbekistan taxation on 90

ENI/AGIP company 183n. 7

Enron Oil and Gas Company 57

investment in post-Soviet Turkmenistan and Uzbekistan 78

Entelis, John 53

Ente Nazionale Idrocarburi (ENI) 183n. 7, 206–07

enterprise bureaucrats

in fiscal regime stability 11–13

governing elites and 11

in Soviet Union 20

enterprise profit taxes (EPT)

in Soviet Union 19

state-owned enterprises and 36n. 7, 36–38

Entrepreneurship Development Foundation (EDF) 247, 247n. 38

Entreprise de Recherches et d’Activités Pétrolières (ERAP) 206–07

Environmental and Social Impact Assessments (ESIA), Azerbaijan’s societal expectations and 251

environmental protection

corporate social responsibility and 68–69

foreign investment commitment to 191–94

in Kazakhstan 266–69, 289–90

Esso oil company 205

Eurasia Partnership Foundation (EPF) 252n. 45

European Bank for Reconstruction and Development (EBRD) 84, 86

socio-economic indicators from 17n. 11

excess profits taxes

on domestic private owners 67–68, 70

on foreign oil companies 193n. 19

Kazakhstan tax revenue from 273, 273n. 21

Russian tax reform and 140–44

Turkmenistan/Uzbekistan reliance on 93

exchange rate

in Botswana 2–3

export windfalls 2

excise taxes

in Azerbaijan 231

in Uzbekistan 88n. 30, 90

expatriates, personal income tax on 230

expenditures

in Azerbaijan 233–37, 242–44

coercion and 293–96

fiscal regime stability and 11–13, 38–43

foreign investment in petroleum and 183–89, 192, 194, 195–204

fuel subsidies in Turkmenistan/Uzbekistan as portion of 98–100

Gazprom public sector spending, state pressure for 177

hybrid fiscal regimes and 220–22

implicit bargaining in Turkmenistan/Uzbekistan fiscal regimes and 114–16

in Kazakhstan, by foreign oil companies 16–27, 274–81, 293–96

Kazakhstan non-mineral sector expenditures and 281–84

in mineral-rich and rentier-states 331–35

national oil companies’ mismanagement of 52–53, 60

ownership structures and historical patterns of 13–16

in Russia 144–52, 159, 169–72, 177–80

by SOCAR 237–42

societal expectations and 58–70, 60n. 23, 195–204

by SOFAZ 237–42

in Soviet successor states 16–27

taxation and 31–44, 61n. 26, 61–70

transparency and 32–33

in Turkmenistan 95–116, 118–19

in Uzbekistan public opinion concerning 95–116, 118–19

See public sector spending

explicit bargaining

defined 71

fiscal regime strength and 73

Russian fiscal regime and 165–68

Turkmenistan/Uzbekistan secrecy concerning 114–16

explicit taxes 34

in Russia 134–36, 169–72

in Turkmenistan 88

in Uzbekistan 90

export revenues

coercion in Kazakhstan concerning 293–96

exchange rate and 2

extrabudgetary funds and 100n. 42, 100–05

for Gazprom 174–77, 175n. 80

in mineral-rich and rentier states 331–35

ordinary least squares (OLS) model and 316n. 19, 316–19

ownership structure and 319–21

path dependency and 327–30, 328n. 4

petroleum wealth based on 309–16

public spending and societal expectations and 60–61

in Russia 138–44, 139n. 34, 308–09

state ownership with control structure and 47, 79–80

in Turkmenistan 81–84, 82n. 9, 88, 90

Uzbekistan taxes on 89–90

extrabudgetary funds (EBTs)

Kazakhstan expenditures outside the mineral sector 281–84

Russian fiscal regime and use of 135

SOFAZ expenditures in Azerbaijan and 239–42

in Turkmenistan/Uzbekistan 100n. 42, 100–05, 114–16

Extractive Industries Review 200n. 27, 200–01

Extractive Industries Transparency Initiative (EITI) 43n. 18

Azerbaijan membership in 240n. 34, 252–56

British Petroleum in Azerbaijan and 254–55

Kazakhstan reluctance concerning 295n. 40, 295–96

National Fund of the Republic of Kazakhstan and 278–81

Exxon Corporation 183n. 6, 201, 202

corporate social responsibility and 211

merger with Mobil 209n. 40

social spending in Azerbaijan by 235, 237

See also Standard Oil of New Jersey

Federal Budget Law (Russia) 144–45, 177–80

financial reserve fund (Reservny Fond)

creation in Russia of 145, 146

Russian transparency concerning 166

fiscal regimes

in Azerbaijan 220–22

expenditures and 11–13, 38–43

explicit bargaining and 165–68

foreign investment in petroleum and 193–94, 215–184

implicit bargaining in Turkmenistan/Uzbekistan and 114–16

institutions and 3–4

in Kazakhstan petroleum industry 259–98

in mineral-rich states 31–44, 324n. 1

ownership structure and 9–16, 74–76, 116–20

power relations and 70–76, 206–15

private domestic ownership and 48–49, 122

private foreign ownership and 183–86

research methodology concerning 28–30

resource curse thesis concerning 1–4, 27–28

in Russia 121–22, 134n. 25, 134–36, 135n. 26, 152–80

societal expectations and 58–70

in Soviet successor states, petroleum wealth and 16–27

state ownership with control and 48–49, 116–20

state ownership without control and 183–86

tax systems in 33–38, 87–94

transactions costs and 50–58

Turkmenistan/Uzbekistan comparisons of 80–81, 87–120

See also hybrid fiscal regimes, strong fiscal regimes, weak fiscal regimes

flat taxes 38n. 11

Russian oil companies’ support for 167–68

foreign exchange regimes (FER), in Turkmenistan and Uzbekistan 90, 100–05

Foreign Investors Council (Kazakhstan) 291–96, 292n. 36

foreign oil companies (FOCs)

Azerbaijan expenditures and taxation and 226–29, 233–37, 246–52

Azerbaijan hybrid fiscal regime and 226

coercion of 252–56, 291–96

corporate social responsibility and 187–89, 331–35

fiscal regimes and ownership structure and 181–189

historical patterns of 13–16

host government, contractual relations with 42–43

international diffusion effect 314n. 13

international norms concerning 14–16

in Kazakhstan 86, 259–98

in mineral-rich states 6

minimization of, in state ownership with control 79–80

ownership structures and 193–94, 215–184

power relations in petroleum industry and 183–86, 204–15

private domestic ownership and 48, 69

private foreign ownership and 182–89

production-sharing agreements and 191–94

regional diffusion effect 314

in Russian gas sector 132n. 15, 132–34, 133n. 18, 172

in Russian oil sector 26, 129n. 9, 129–31, 155n. 55, 155–56

societal expectations and 183–86, 195–204

state ownership with control 48

state ownership without control and 183–89

transaction costs and 183–86, 188–89, 244–45

in Turkmenistan 25n. 25, 77–79, 78n. 3, 82–85, 84n. 15, 114–16

in Uzbekistan 25n. 25, 77–79, 78n. 3, 85n. 23, 85–87, 114–16, 119–20

foreign trade

Soviet successor state petroleum industry access to 26, 26n. 26

Turkmenistan/Uzbekistan taxation of 93

former Soviet Union (FSU)

See Soviet successor states

Freedom House Index 118n. 63

Friedman, Thomas 322

fuel subsidies

Azerbaijan tax revenue for 228–29

coercion and 293–96

for domestic private owners 65–70, 66n. 32

governing elites’ use of 52

in Kazakhstan 282–83, 293–96

public spending and societal expectations and 60–61

Russian economic reforms and 149, 169–72, 170n. 74, 170n. 76

SOCAR expenditures on 228–29, 237–42

in Turkmenistan 77, 98–100

in Uzbekistan 98–100

Fund for Children’s Sports Development (Uzbekistan) 120

Fund for Settlements for Agricultural Products Purchased for State Needs (Uzbekistan) 116

G-77, formation of 206–07

Gaidar, Yegor 168

gas quotas

in Turkmenistan/Uzbekistan 98–100

See also natural gas

Gazprom 23, 56–57

formation of 124

governing elites’ ties to 174–77

lost assests of 134, 134n. 24

media holdings of 176, 176n. 81

monopoly structure of 122, 173n. 77

pipeline network of 134n. 22

privatization of 132–34, 133n. 19, 133n. 20, 134n. 23, 168–77, 319–21

state takeover of Yukos oil company and 131n. 12

undercapitalization and mismanagement of 172

Gazprom Joint Stock Company 124

generally accepted accounting principles (GAAP), Russian acceptance of 166, 166n. 71

geographic isolation

democratization and petroleum wealth and 326–27

foreign investment in petroleum and 196–97

Gershenkron, Alexander 1, 335

Giffen, James 295–96

Global Witness 200, 201–02

Goldman Sachs Energy Environmental and Social Index 211, 254–55

goods and services

Azerbaijan foreign oil companies’ expenditure 235

foreign investment as source of 201–04

private property rights legitimation 69

public spending in Turkmenistan/Uzbekistan on 100–05

Russian expenditure reforms and public spending reductions on 150–51

Russian gas sector revenues for 169–72

Russian privatization of, public opinion concerning 157–65

state ownership with control and 61–62

Goskomstat (Russian statistics collection bureau) 165–66

governing elites

in Azerbaijan 220–22, 226–33, 242–45, 246–56, 247n. 39

budget stability and transparency and 66–67

coercion and 252–56, 291–96

distributional conflict and 301–09

enterprise bureaucrats and 11

explicit bargaining by ROCs and 165–68

fiscal regime stability and 48–49

Gazprom ties with 174–77, 179–80

geographical distribution of petroleum wealth and 186–87

implicit bargaining by 72–73, 114–16

import substitution embraced by 63

interviews with 337–43

in Kazakhstan 259–98, 281n. 29, 305–06

in mineral-rich and rentier states 334–35

National Fund of the Republic of Kazakhstan and 278–81

in national oil companies’ management structure 48n. 7, 53n. 15, 53n. 16, 53

ownership structure preferences of 21–22, 74–76, 301–09

power relations with foreign investors 70–76, 204–15

private domestic ownership 11–13, 47–49, 55–58

private foreign ownership and 182n. 4, 182–89

resource curse thesis and 319–21

Russian gas sector privatization and 132–34, 133n. 18, 133n. 19, 133n. 20, 134n. 23, 174–77

Russian oil sector privatization and 127–32

Russian public sector spending and 145n. 43, 148, 160, 160n. 63

Russian tax system and 134n. 25, 134–36, 135n. 26, 160–63

societal expectations of foreign investment and 195–204

state ownership with control and 46, 53–54, 301–09

state ownership without control and 183n. 5, 183–89, 301–09

transaction costs for 51–55, 134–36, 152–56, 189–94

in Turkmenistan 81–84, 82n. 8, 105–14

in Uzbekistan 105–07, 113, 305

See also intra-elite agreements, leadership structure, patronage networks

government borrowing, taxation and 61–70

Guatemala, private domestic ownership in 46n. 3, 121

Gulf of Mexico Foundation 48n. 9

Gulf Oil 183n. 6, 205

“Gulf-plus formula” for petroleum pricing 204–05, 205n. 32, 205n. 33

Gusinsky, Vladimir 176

Haber, Stephen 326–27

health care spending

Azeribaijan foreign oil company expenditures on 235

foreign investment commitment to 191–94

private sector growth in Russia and 150

Herb, Michael 326–27

Herrera Campins, Luis 54n. 17

Horiuchi, Y 323–27

host countries

foreign investor contractual relations with 14–16, 42–43, 194n. 22

IFI/INGO influence in 208–15

obsolescing bargain theory and 207–08

oil pricing controls of 208

power relations of foreign investors with 204–15

production-sharing agreements in 191–94

societal expectations of foreign investment and 195–204

transaction costs and 189–94

See under specific countries, e.g. Azerbaijan

housing subsidies, termination in Russia of 167–68

human capital development

expenditures on 38–43

Kazakhstan government expenditures on 283, 283n. 31

requirements for 34

in Uzbekistan 102–04, 104n. 46, 117–18

Human Development Index (HDI)

Kazakhstan government expenditures and 283n. 31

Russian expenditure reforms and 151

in Soviet successor states 17, 17n. 9

in Turkmenistan/Uzbekistan 117–18

Hurricane Hydrocarbons (Canada) 264, 266–69, 274–81, 292, 293–96

hybrid fiscal regimes

foreign investment in Azerbaijan and 220–22, 226, 256–58

in Kazakhstan 265–66, 296–98

Kazakhstan transaction costs and 285–86

ownership structures and 13–16

power relations and foreign investors 210–15

Illarionov, Andrei 167–68

implicit bargaining

defined 71

information concealment and 72

in private domestic ownership 72–73

Russian oil and gas sectors and 168–77

in Turkmenistan/Uzbekistan 114–16

implicit taxes 34, 38

for domestic private owners 65–70

fuel subsidies as 98–100

governing elites’ use of 52

mismanagement linked to 52–53

in Russia 134–36, 169–72

in Turkmenistan and Uzbekistan 88, 90

import substitution (ISI)

economic growth linked to 62–64, 63n. 30, 315–316

human capital development and 103–04

industrialization in Turkmenistan/Uzbekistan and 80–81, 96–97, 99–100

private enterprise development and 67

textile industry and 97

in Uzbekistan 80–81, 103–04

income inequality

Kazakhstan redistribution and 284

Russian expenditure reforms and 151n. 52

in state ownership with control 74–76

income taxes

Azerbaijan revenue from 228–29

in Kazakhstan 269–74

revenue generation from 37–38

See also personal income taxes (PIT)

independent oil companies, power relations and foreign investment by 206–07

indirect taxation 33–34, 34n. 3

Azerbaijan non-mineral sector 229–33

invisibility of, 68n.10n.5 34–38

petroleum-rich states and 332–33

Russian Tax Code and 137–44

in Turkmenistan/Uzbekistan 93

Indonesia

democratization in 323–24

foreign investment in 211–12

fuel subsidies in 238

petroleum development in 311n. 9, 311n. 10, 311

production-sharing agreements in 191n. 15, 191–94, 192n. 18

industrialization

state sponsorship of 62–64

in Turkmenistan/Uzbekistan 96–97, 99–100

informal economy

in Azerbaijan 231–32, 232n. 20

in Kazakhstan 269–274

Russian tax reforms and 138–44, 139n. 35

in Uzbekistan 117n. 62, 117–18

information asymmetry

domestic private owners and 72–73

power relations and 70–76

Russian transparency concerning explicit bargaining and 165–68

societal expectations of foreign investment and 201–04

state vs. private ownership structures and 71n. 34

transaction costs and 50n. 10, 50–58

institution building

economic growth linked to 3–4

government spending and 38–43

negative economic/political outcomes and 2

ownership structures and 74–76

power relations with foreign investors and 204–15

as product of supply and demand 11–13

state ownership with control vs. private domestic ownership and 48–49

transaction costs as incentives for 50–58

internal energy consumption

Azerbaijan mineral sector expenditures and 234

Gazprom production and 174–77, 175n. 80

import substitution and 63

in mineral-rich states 47, 79–80

societal expectations for public spending and taxation and 62

wealth creation and 327–30

internally displaced persons (IDPs), Azerbaijan mineral sector expenditures on 235–37, 236n. 29

International Alert organization 233n. 22, 235–37

international diffusion effect, ownership structure and 311n. 11, 314n. 13

International Federation of Red Cross and Red Crescent Societies 237

international financial institutions (IFIs)

in Azerbaijan 220, 242–44, 246–52

export dependency advocacy by 327–330, 328n. 4

foreign investment norms and 14–16, 183–89, 208–15

government spending and 38–43

in Kazakhstan 285–86, 289–90, 295–96

model contracts and 193–94

petroleum revenue management and 215–184

rentier states and 331–35

resource curse thesis and 322–23

societal expectations and role of 195–204

state ownership with control and private domestic ownership structures and 48, 183–89

transparency goals of 33

Uzbekistan taxation system and 119–20

international loan programs

Turkmenistan oil and gas sector and 84, 86

in Uzbekistan 86, 95

international market conditions, oil prices and 314–15, 315n. 15

International Monetary Fund (IMF)

on Kazakhstan tax revenue 269–74

National Fund of the Republic of Kazakhstan and 278–81

international non-governmental organizations (INGOs)

in Azerbaijan 220, 235–37, 246–56, 252n. 45

coercion and 252–56

export dependency advocacy by 328n. 4

foreign investment norms and 14–16, 183–89, 193–94, 208–15

in Kazakhstan 285–86, 289–90, 295–96

model contract and 285–86

petroleum revenue management and 215–184

power relations of foreign investors and 14–16, 208–15

rentier states and 331–35

resource curse thesis and 322–23

societal expectations of foreign investment and role of 195n. 24, 195–204

state ownership with control and private domestic ownership structures and 48

transaction costs and 285–86

transparency goals of 33

in Uzbekistan 119–20

International Petroleum Company (IPC) 190n. 11, 201n. 29, 205, 206–07

International Rescue Committee 235–37

intra-elite agreements

foreign investment influence in 211n. 42, 211–12

local governments and Russian oil companies 163–65

national oil companies and 54

power relations and 70–76

private domestic ownership and 55–58

private foreign ownership and 182–89

transaction costs in state ownership with control and 51–55

investment decision-making

centralization in Turkmenistan/Uzbekistan of 96

by governing elites 52–53

institutional influence on 3–4

Russian economic growth and 148n. 48, 148–49

Iran

independent petroleum contracts with 206–07

petroleum production quotas in 205

Turkmenistan pipeline agreement with 81–84, 82n. 10

Iraq

independent petroleum contracts in 206–07

IPC oil contract with 190n. 11

Tripoli Agreement and 207n. 37

U.S. influence on petroleum contracts in 205n. 33

Iraqi constitution of 2005, Article 108 10

Iraqi Draft Oil and Gas Law 193

ISAR (NGO) 246–52

Ishanov, Khekim 82–83

ITIC tax group, Kazakhstan transaction costs and 285–86

Japan Export-Import Bank 84, 86

JGC company 86

Joint Stock Society Gazprom (RAO Gazprom) 132–34

joint ventures

in Azerbaijan petroleum industry 224n. 10

foreign investment participation in 205

state ownership with control and 7–9

in Turkmenistan petroleum sector 82–85

in Uzbekistan 86–87

Jones-Luong-McMann survey 110n. 56, 110–14

Kazakhstan societal expectations and 286–91

Kamenev, Sergei 110n. 56

Kamp, Marianne 103

Karachaganak consortium 295–96

Karimov, Islam 77, 77n. 2, 85–87, 118–20

public addresses by 113–14

Karl, Terry Lynn 1, 31

Kazakhgazprom 261–66

Kazakhoil, formation of 264–65

Kazakhstan 123n. 1

coercion of foreign oil companies in 291–96

distributional conflict in 305–06

emergence as petroleum-rich state 20–27

expenditures within mineral sector 274–81

fiscal regime in 16–27, 281–84

foreign investment in 86, 202n. 30, 211–12

fuel subsidies in 98

history of petroleum production in 24n. 23, 24–25

hybrid fiscal regime in 265–66

mineral sector taxation in 266–69

non-mineral sector expenditures and taxation in 269–74, 281–84

oil reserve estimates in 25–26

ownership structure in 19n. 14, 19–27

petroleum quality and extraction difficulty in 26

poverty reduction in 151–52

private foreign ownership in 259–98

private sector growth in 148n. 47

production-sharing agreements in 138n. 33, 225–26

public opinion surveys in 110n. 56

societal expectations in 286–91, 331–35

tax system in 112, 227, 230n. 18, 232–33

transaction costs 285–86

Kazakhstanmunaigas 261–66

Kazakhstan Petroleum Association (KPA) 294, 294n. 39, 295–96

Kazhegeldin, Akezhan 260

KazMunaiGaz (KMG) 293, 293n. 38, 296–98

kerb rate, in Turkmenistan 90, 90n. 36

Khalk Maslakhaty (Turkmenistan annual presidential address) 108–10

Khodorkovsky, Mikhail 131–32, 158, 160, 166, 176, 179

Kiriyenko Sergei 121

Komitek oil company 129–31

Kuwait, American Independent Oil contract with 190

Kuwait Reserve Fund 100

Kyrgyzstan 110n. 56

Larmag oil company 78n. 3, 82–83

Latin America, democratization and petroleum wealth in 323–27, 326n. 2

Law of Petropolitics, current paradigms concerning 1–4

Law on Concessions (Turkmenistan) 82n. 11

Law on Energy (Azerbaijan) 225–26

Law on Foreign Investment (Kazakhstan) 263

Law on Hydrocarbon Resources (Turkmenistan) (Petroleum Law) 83, 83n. 14, 84–85, 106

Law on Petroleum (Kazakhstan) 263–64

Law on Property (Uzbekistan) 85n. 20

Law on Subsoil (Uzbekistan) 85–87

Law on Subsoil Reserves (Azerbaijan) 225–26

Law on the Protection of Foreign Investments (Azerbaijan) 225–26

Law on the Subsurface (Turkmenistan) 82n. 8

leadership structure

absence of domestic constraints on 6

in mineral-rich states 6–9

revenue-cost relationships and 301–09

legislation

Azerbaijan production-sharing agreements and 225–26

change in ownership structure and 8n. 6, 8–9

foreign investor influence on 211–12

Kazakhstan petroleum industry, foreign investment and 263–64, 264n. 7, 264n. 8, 264n. 9

Levi, Margaret 31

Libya

independent petroleum contracts with 206–07, 207n. 37

public spending from oil revenues in 61n. 25, 65

Lieberman, E. S 37n. 9

Life in Transition Survey (LiTS) 21–22

Azerbaijan societal expectations and 246–52

Kazakhstan societal expectations and 286–91

responses by age group 351

Russian societal expectations and 157–65

Turkmenistan societal expectations and 107n. 51

Uzbekistan public opinion and 110–14

living standards

foreign investment in petroleum and 187–89

Russian public sector spending and 161–63

in Turkmenistan 101–02, 102n. 44

Turkmenistan societal expectations and 108–10

in Uzbekistan 102–04, 104n. 46

“loans for shares program,” Russian oil sector privatization and 128n. 7, 128–29

local and regional government structures

in Azerbaijan of 234n. 23, 234n. 24, 234, 252–56

in Kazakhstan 284, 284n. 32, 293–96

Russian oil companies’ relations with 163–65

societal expectations of foreign investment and 196–97, 200–01, 202–04

See also regionally-based agreements

“local content,” in production-sharing agreements 192, 192n. 17

López Contreras, Eleazar 195n. 23

Lukoil Overseas Holding Ltd 24–25, 86–87, 119–20

in Kazakhstan 265–66

as vertically integrated joint-stock oil company 121, 127–32

Luong, Pauline Jones 110n. 56

Madelin, H 71n. 35–72

Majors (“Seven Sisters”) of petroleum industry

domestic politics and influence of 300, 319–21

foreign investment by 183n. 6, 190n. 12, 319–21

independent companies’ competition with 206–07

Iraqi oil contracts and 205n. 35

power relations in host countries and 204–15

Malaysia 2–3

malhallas (community associations) in Uzbekistan 102–04

Mangistaumunaigas (Kazakhstan) 264, 264n. 11, 292

Marathon oil company 48n. 9

market-based reforms, in Soviet successor states 17–19

Marubeni company 86

Masimov, Karim 298

McMann, Kelly 110n. 56

McPherson, C 239n. 31

means testing, for targeted public spending 39–43, 40n. 13

Medvedev, Dmitry 134n. 23, 177

Menaldo, Victor 326–27

Menatep Bank (Russia) 128–29

Mexico

corporate social responsibility of private companies in 68–69

governing elites’ mismanagement in 52–53

mineral development delay and internal consumption in 47

national oil companies in 55

Middle East, taxation in mineral-rich rentier states of 332–33

military intervention, foreign investment in petroleum and 205–06

Millennium Development Goals (MDGs), public sector spending in Azerbaijan and 235

Miller, Alexei 133n. 19

Mineral Resources Development Fund (Uzbekistan) 100–05

mineral wealth

in Azerbaijan 226–29, 233–37, 246–52

corporate income taxes and 36–38, 37n. 10

corporate social responsibility and 210–15

dataset characteristics for 309–16, 310n. 6

delayed development of resources and 47, 79–80

democratization and 323–27

distributional conflict and 301–09

domestic private owners and 65–70

economic development and 1–4

fiscal regime-ownership structure link and 74–76, 116–20, 181–89

foreign investment and societal expectations and 195–204

IFI/INGO influence over 208–15, 210n. 41

Kazakhstan taxation of 266–69

“lock-in” of regime structure and 324n. 1

national oil companies and 46

ownership structure classification and 6–9, 45–46, 46n. 2, 46n. 3, 181–89, 309–16

path dependency and 327–30

politics and ownership structure and 299–321

power relations and foreign investors and 208–15

private foreign ownership and 182–89

property rights issues and 9–10

of rentier states 32–33, 43–44, 331–35

resource curse thesis concerning 1–4, 27–28, 322–36

in Russia 138–44, 147, 161–63, 162n. 65, 179

SOCAR expenditures and 237–42

societal expectations and 58–70, 195–204

SOFAZ expenditures and 237–42

in Soviet successor states 16–27

state leaders’ decision-making and 301–09

state ownership without control and 183–89

taxation vs. expenditure and 31–44

tax revenue dependence on 88

See also petroleum industry

mining subsidies, Russian tax revenues for 144n. 41

Mobil Oil Corporation 205

corporate social responsibility and 211

Kazakhstan expenditures by 274–75, 291–96

merger with Exxon 209n. 40

production statistics for 239n. 31

TengizChevroil (TCO) and 263, 263n. 6

model contract

foreign investors and host countries 189–94, 190n. 9

historical context for foreign investment and 206

Kazakhstan transaction costs and 285n. 33, 285–86

power relations and changes to 204–15

transaction costs and societal expectations with 208

Moldova, quasi-fiscal activities in 98

moral hazard, transaction costs and 50n. 11

Moran, Theodore 205–06

multinational corporations (MNCs)

corporate social responsibility of foreign investment and 199–204, 200n. 27

country bonuses from 37n. 10

private foreign ownership and 182

taxes on 36–38

Mutallibov, Ayaz 224n. 9

“mutual hostage taking”

domestic private owners (DPOs) and 72–73

national oil companies and 72

obsolescing bargain theory and 207n. 38

Mynbaev, Sauat 277

Nadymgasprom 171

National Oil Academy (Azerbaijan) 233

national oil companies (NOCs)

in Azerbaijan 224–29

bankruptcy of 75–76

borrowing power of 61–62

economic development and 330

foreign investment and societal expectations and 195–204

fuel subsidies as implicit taxes on 98–100

Gazprom transformation into 168–77

governing elites and 11

hybrid fiscal regimes and 226

implicit bargaining and 114–16

information asymmetry and 71n. 35–72

in Kazakhstan 261–66, 291–96

management structure of 48n. 7, 53n. 15, 53n. 16, 53

overreliance for economic development linked to 62–64

pilfering during boom and bust cycles of 61

power relations and 70–76, 188–89

private domestic ownership and 47–48, 48n. 6, 55–58

production-sharing agreements 191–92, 192n. 18

public spending financing by 60, 60n. 24

rent-seeking behavior and 63–64

revenue inefficiencies of 63n. 29

Russian transaction costs for 134–36, 152–56

state ownership with control and 46, 46n. 4, 197–99

state ownership without control and 183n. 5, 183–89, 197–99

transaction costs and 51–55, 134–36, 152–56

in Turkmenistan 105–07, 114–16

in Uzbekistan 79n. 6, 85–87, 105–07, 114–16

“national prestige” projects 14

absence in Russia of 148

Gazprom spending on 177

Kazakhstan expenditures on 278–81

in mineral-rich states 32

national oil companies and 52–53

as newfound wealth benefit 80

in Soviet successor states 17

in Turkmenistan 104

in weak fiscal regimes 87

Nations Energy company 274–75

Kazakhstan taxation of 266–69

natural gas industry

Azerbaijan production-sharing agreements for 222n. 8, 222–26

extrabudgetary funds and 100n. 42

in Kazakhstan, private foreign investment in 261n. 3, 261–66

price fluctuations in 23

in Russia 122, 132–34, 133n. 18, 168–77

SOCAR expenditures and 237–42

SOFAZ expenditures and 237–42

in Turkmenistan 79–80, 81–84, 88, 89n. 31, 98–100, 105–07, 106n. 47

in Uzbekistan 98–100, 105–07

natural resource funds (NRF)

in Azerbaijan 220–22, 227–29, 246–52, 331–32

budget stability and transparency and 66–67

domestic private owners and 65–70

excess profits taxes and 67–68

foreign investors and 187–89, 215–184

governing elites’ support for 54–55, 57–58

Kazakhstan mineral sector expenditures and 260–61, 278–81, 296–98

model contract as equivalent of 206

in non-OECD countries 123n. 1

power relations and foreign investors 210–15

in Russia 122–24, 144–52, 161–63, 331–35

SOCAR expenditures in Azerbaijan and 239–42

societal expectations of foreign investment and 199, 202–04

SOFAZ expenditures in Azerbaijan and 239–42

tax relief and protection of 68

in Turkmenistan 100–05

natural resources extraction tax (TENR) (Russia) 138–44, 144n. 42, 147

Navoi Opera and Ballet Theater 120

Nazarbayev, Nursultan 263–64, 264n. 7, 264n. 8, 269, 277, 278–81, 287–88, 290–91, 292, 295–96, 298

Neft Dashlari (Oily Rocks) oil complex 25–26, 224–26

“New Civilization” education program (Russia) 164n. 69

New International Economic Order 206–07

Nigeria

democratization in 323–24

fuel and food subsidies in 60

governing elites’ mismanagement in 52–53

rent-seeking behavior in 64

“wealth” curse in 1

Nigeria-Sao Tome and Principe Joint Development Authority 193n. 20

Niyazov, Sapurmurat

authoritarian regime of 96, 118–20

cult of personality and 81–84

death of 119

fuel subsidies under 77, 77n. 2, 101

lack of private sector growth and 97

“national prestige” projects under 104

oil and gas sector management and 106n. 47

public addresses of 108–10

secrecy in regime of 114–16

tax system and 88, 88n. 30

Nobel, Ludwig 221

Nobel Brothers Petroleum Company 221

Norilsk Nickel company 128–29

North, D 31n. 1, 51n. 13

North Apsheron Operating Company (NAOC) 253–56

Norway, economic growth in 3n. 4

obsolescing bargain theory 14

coercion in Azerbaijan and 252–56

corporate social responsibility and 15–16

foreign investors and strategies to counter 188–89, 209

historical context for 28

Kazakhstan petroleum industry and 259–98

mineral-rich rentier states 331–35

sunk costs and foreign investors 207–08

Occidental Petroleum Company 183n. 7, 206–07

Offshore Kazakhstan International Operating Company (OKIOC) 266–69, 274–75

oil

See petroleum

Oil and Gas Journal Database 310, 310n. 6

oil prices

fluctuations in 23, 23n. 19

international market conditions 314–15

petroleum boom and bust cycles and 20–21, 21n. 16

Oil Stabilization Fund (OSF) (Russia) 124, 134–36, 144–52, 146n. 44

governing elites’ attitudes concerning 161–63

restructuring of 177–80, 178n. 86–179

Russian transparency concerning 165–68

oligarchs

Russian governing elites and 122, 179

Russian tax code reform and 167–68

state takeover of Gazprom and 174–77

Oliy Majlis (Uzbekistan’s legislature) 113–14

Onako oil company 129–31

Oneksimbank (Russia) 128–29

Open Budget Index 147

Open Society Institute (OSI) 200, 210n. 41, 246–52

ordinary least squares (OLS) regression, hypothesis testing of ownership structure selection and 316n. 19, 316–19, 317n. 20, 318n. 21

Organization of Petroleum Exporting Countries (OPEC)

domestic politics and 300

foreign investment competition from 206–07

founding of 14, 183–89

international diffusion effect 314n. 13, 314n. 13

production-sharing agreements and 191–92

reliance on mineral exports and 16–17

rentier model and 118–20

Turkmenistan/Uzbekistan comparisons to 80–81

ownership structure

characteristics in mineral-rich states 6–9

claimant status under 10

coding for 7n. 29–8

dataset characteristics of 309–16

in developing countries, variation in 345

distributional conflict and 309–16

domestic determinants of 299–321

economic development strategy and 315–316

fiscal regimes and 9–16, 116–20, 181–89

foreign investment influence on 193–94, 215–184

historical context of 13–16, 182, 182n. 2

international diffusion effect 314, 314n. 13

international market conditions 314–15

mineral wealth and 6–9, 45–46, 46n. 2, 46n. 3, 181–89, 309–16

obsolescing bargain theory and 207n. 38, 207–08

ordinary least squared model 316–19

path dependency and 315n. 16, 315n. 17, 315

power relations and 70–76

regime type (polity) and 316

regional diffusion effect 314

in rentier states 331–35

research methodology concerning 28–30

resource curse thesis and 1–4, 27–28, 74–76, 319–21, 322–36

in Russia 121–80

social relations and 9–11

in Soviet successor countries 19–27

state ownership with control (S1) vs. private domestic ownership (P1) 45–76

state ownership without control (S2) vs. private foreign ownership (P2) 181–84

transaction costs and 50–58

Turkmenistan/Uzbekistan comparisons of 77–120

variations in 7–9

wealth development and 6–9

See under specific ownership categories, e.g., private domestic ownership

Oxfam 200

path dependency

mineral wealth and 327–30

ownership structure and 315n. 16, 315n. 17, 315

resource curse thesis and 323–27

patronage networks

in Kazakhstan 305–06

state leaders’ decision-making and 301–09, 302n. 2

“peak oil” premise, ownership structures and 315n. 14

Pension Fund (Uzbekistan) 100–05

pension guarantees

in Kazakhstan 296–98

Kazakhstan government expenditures on 282n. 30, 282–83

private sector growth in Russia and 150

Russian public opinion concerning state role in 159

in Turkmenistan 101–02

per capita subsoil wealth measurements, economic growth and 329–30

Persian Gulf states, fuel subsidies in 52, 52n. 14

personal income taxes (PIT)

administrative capacity and 36

in Azerbaijan 229–33

in Kazakhstan 269–74

revenue generation from 37–38

in Russian Tax Code 135n. 26, 137–44

Turkmenistan/Uzbekistan reliance on revenue from 93

Pertamina oil company 192n. 18

Peru

foreign investment in 201n. 29

nationalization of petroleum in 206–07

Petrobras 57

PetroChina 55n. 19, 203, 211

PetroKazakhstan 298

Petróleos de Venezuela Sociedad Anónima (PdVSA) 54, 54n. 17, 54n. 18, 61, 76

Petróleos Mexicanos (Pemex) 46, 55, 60n. 24, 63, 68–69

petroleum industry

abundance vs. wealth in 1–4, 309–16

in Azerbaijan 222–29

boom and bust cycles in 20–21, 21n. 16, 48–49

CIS oil and gas production and proven reserves 17, 22–23

corporate social responsibility in 210–15

in developing countries 1–4

domestic politics and 299–321

excess profits taxes in 67–68

foreign investment and development of 26, 26n. 26, 181–189

foreign market access in Soviet successor states and 26, 26n. 26

history of changes in 189–94

Kazakhstan private foreign ownership in 259–98

mergers in 209, 209n. 40

national oil companies and 46

in Persian Gulf States and 52, 52n. 14

private foreign ownership and 182, 182n. 3

production-sharing agreements in 191–94

property rights issues and 9–10

quality and extraction difficulty in Soviet successor states 26

rents allocation and 20–27, 58–70, 78

reserve estimates for 25–26

revenue management norms in 200, 210–15

in Russia 121–80, 139n. 34

in Soviet successor states 16–27, 77–79

state-owned oil companies (Russia) 129–31

tax revenue dependence on 88

terminology 1n. 1

in Turkmenistan 82–85, 88, 105–07, 106n. 47, 106n. 50, 114–16, 116n. 58

in Uzbekistan 85–87, 86n. 25, 89–90, 114–16, 116n. 58

wealth vs. dependence in 310, 310n. 6, 327–30

See also mineral wealth, natural gas industry

Petronas Carigali Overseas 86–87

pipeline development

Azerbaijan taxation of mineral sector and 227–29

foreign investment in Azerbaijan on 234, 253n. 46

SOFAZ expenditures in Azerbaijan on 239–42

Turkmenistan gas exports and 81–84, 82n. 10

point source resources

revenue generation and 34–38

weak institutions and 2

Polar Lights Company (Russia) 131n. 11

policy failure, resource curse thesis and 327–30

political action

distributional conflicts and 301–09

governing elites’ mismanagement linked to 52–53

implicit bargaining in Turkmenistan/Uzbekistan fiscal regimes and 114–16

ownership structure and 299–321

petroleum rents and 23

state leaders’ decision-making and 301–09

polity data sets, regime type and 316, 316n. 18

postcolonial analysis, resource curse thesis in context of 6–7

poverty reduction

Azerbaijan government expenditures on 235, 242–44

contractual agreements with foreign investors and 188–89, 210–15

corporate social responsibility of foreign investors 199–204

Kazakhstan government expenditures on 284

ownership structures and lack of 74–76

Russian expenditure reforms and 151–52

Russian public opinion concerning state role in 159

targeted public spending and 39–43, 41n. 15, 41n. 16

power relations

coercion in Azerbaijan and 252–56

foreign investment in petroleum industry and 204–15

with foreign investors 13–16

foreign investors vs. state leaders, power shifts between 188–89

international diffusion effect and 314, 314n. 13

model contract paradigm and 189–94, 190n. 9

ownership structures and 70–76

private foreign ownership and (P2) 183–86

regional diffusion effect 314

research methodology concerning 28–30

revenue-cost relationships and 301–09

Soviet successor states’ ownership structure and 20–27

state leaders’ decision-making and domestic politics and 301–09

state ownership with control vs. private domestic ownership and 48–49

state ownership without control and 183–86

Prebisch, Raúl 328n. 5

presidential public addresses

Azerbaijan’s societal expectations and 246–52

Kazakhstan societal expectations and 290n. 35, 290–91

Russian societal expectations and 160–63

societal expectations reflected in 21–22, 96

Turkmenistan societal expectations and 108–10, 119

Uzbekistan societal expectations and 113–14

price controls

foreign investors and world market price 204–15, 205n. 32

in Turkmenistan and Uzbekistan 90

private domestic ownership (P1)

in boom and bust cycles 68

corporate social responsibility norms and 48, 68–69

fiscal regime stability and 11–13, 48–49

foreign investor minimization and 48, 48n. 7

governing elites and 47–48, 319–21

historical context for 13–16

implicit bargaining in 72–73

in low-income countries 70n. 33

in mineral-rich states 331–35

mineral rights and shareholder majority and 8

Natural Resource Fund and 57–58

negative outcomes linked to 74–76

petroleum-rich states adoption of 46n. 3

power relations and 70–76

property rights legitimation and 68–69

public relations concerns of 48n. 8

research methodology concerning 28–30

in Russia 121–80

societal expectations and 65–70

in Soviet successor states 19n. 14, 19–27

state leaders’ decision-making and 301–09

state mineral sector regulations and 65n. 31

state ownership with control (S1) vs 45–76

taxation and 57n. 20, 57n. 21, 57, 65–70, 66n. 32

transaction costs and 55–58

triadic relationships in 11

private foreign ownership (P2)

domestic politics and 299–321

fiscal regime stability and 11–13, 183–86

foreign investors and 193–94, 215–184

governing elites and 182n. 4, 182–89

historical context for 13–16

hybrid fiscal regimes and 210–15

in Kazakhstan 259–98, 261n. 3

leadership preferences and 301–09

in mineral-rich states 331–35

model contracts and 189–94

number of petroleum-rich states with 46n. 2

path dependency of 315n. 16, 315n. 17, 315

research methodology concerning 28–30

revenue-cost relationships and 301–09

societal expectations and 195–204

in Soviet successor states 19n. 14, 19–27

state leaders’ decision-making and 301–09

state ownership without control (S2) and 181–84

transaction costs and 183–86, 189–94

triadic relationships in 11

private sector growth

in Azerbaijan 232–33, 235–37

ownership structures and 67

in Russia 148n. 48, 148–49, 157n. 59, 157–65

social welfare spending and 150

state control over 9–10

in Turkmenistan/Uzbekistan, comparisons of 97, 116–20, 119n. 65, 157

privatization

to domestic private owners 65–70

foreign investment and societal expectations and 195–204

of Kazakhstan petroleum industry 261n. 3, 261–66

popular support in Uzbekistan for 110–14

in Russia 121–80, 157n. 59

of Russian gas sector 132–34, 133n. 18, 168–77

of Russian oil sector 127–32, 168–77

Turkmenistan ban on 84

production quotas

Azerbaijan petroleum sector taxation and 226–29, 227n. 15

foreign investment imposition of 205, 205n. 34

in Turkmenistan and Uzbekistan 90

production-sharing agreements (PSAs)

in Azerbaijan petroleum industry 222n. 6, 222n. 8, 222–26, 226n. 14, 227–29, 239–42, 244–45, 253–56

foreign investment in petroleum industry and 191–94

Kazakhstan petroleum industry and 265–69

“local content” in 192, 192n. 17

properties of 191n. 16

in Russian oil sector 129n. 10, 129–31, 131n. 11, 138n. 33

SOFAZ and 239–42

state ownership without control and 7–9

in Turkmenistan 84n. 15, 84n. 18, 84–85

in Uzbekistan 86–87, 119–20

profit oil

private foreign ownership and 305, 305n. 4

in production-sharing agreements (PSAs) 191n. 16

property rights

domestic private owners and 65–70

resource curse thesis concerning 27–28

Russian societal expectations and 157–65

social relations and 9–10

societal expectations and 58–70

tax system and protection of 68–69

property taxes, Azerbaijan revenue from 229–33

proxy states, foreign investors and 188–89, 217–184

public opinion surveys

Azerbaijan societal expectations and 246n. 37, 246–52

Kazakhstan societal expectations and 286–91

Russian societal expectations and 157n. 59, 157–65, 158n. 60

on Soviet successor states’ ownership structure 21–22

Turkmenistan societal expectations and 107n. 51, 107–08

Uzbekistan societal expectations and 110–14

public ownership, role of the state and 9–10, 10n. 8

public sector spending

See expenditures

“Publish What You Pay,” 211, 254–55

Pudakov, Amangeldy 105–07

Putin, Vladimir 129–32, 134n. 23, 148, 159, 160–63, 162n. 65, 166–68, 174–77, 319–21

quasi-fiscal activities (QFAs)

in Azerbaijan 220–22, 226

energy subsidies and 39–43

governing elites’ preference for 74–76

hybrid fiscal regimes and 226

Russian economic reforms and reduction of 134–36, 149, 170

SOCAR and 238

societal expectations of foreign investment and 197–99

SOFAZ and 238

in Soviet Union 20

transaction costs and 54–55

Turkmenistan/Uzbekistan reliance on 80–81, 97–101

quasi-fiscal deficit (QFD), in Uzbekistan 99

quasi-voluntary compliance, transaction costs and 50–58

real exchange rate, in Kazakhstan 278–81

Red Line Agreement of 1928 205n. 33

refugee services, foreign oil companies’ expenditure on 235–37, 239n. 32

Regional Development Initiative (RDI) 235, 235n. 26

regionalism, state leaders’ decision-making and domestic politics and 301–09

regionally-based agreements

foreign investment in petroleum and 206–07

regional diffusion effect 314

regulatory structures

foreign investors’ influence on 211–12

state control and 9–10

Relief International 237

rentier states

defined 6, 6n. 5

democratization and petroleum wealth and 326–27

mineral-rich states as 32–33, 43–44, 331–35

societal expectations and 58–70, 60n. 23, 75–76

state ownership with control and 77–120

Turkmenistan as example of 80–81, 118–20

Uzbekistan as example of 118–20

rent-seeking behavior

boom and bust cycles and 64

distributional conflict and 306

power relations and 70–76

private enterprise development and 67

state ownership with control and 63–64

resource curse thesis

country exceptions to 2–3

current paradigms concerning 1–4, 27–28

democratization and 323–27

fiscal regimes of mineral-rich states and 31–44, 116–20

historical view of 322–36

mineral wealth and 1–4, 27–28, 322–36

ownership structures and 1–4, 27–28, 74–76, 319–21

petroleum wealth dataset and 309–16

postcolonial historical context for 6–7, 28

research methodology concerning 28–30

Russian fiscal regime strength and 134–36

in Soviet successor states 16–27

state ownership with control vs. private domestic ownership and 48–49

retail turnover tax, in Soviet Union 19

revenue generation

alternative sources for 62, 62n. 28

Azerbaijan taxation of mineral sector and 227–29

citizen detachment from 65

claimant status and ownership structure 10

corporate income taxes and 36–38, 37n. 10

democratization and economic development 31–32

foreign investors as source of, societal expectations concerning 199, 199n. 25, 201–04

Kazakhstan non-mineral taxes as source of 269–74

multiple revenue sources for 34–38

by national oil companies 62–64, 63n. 29

non-petroleum alternative revenues 312–13, 331–35

power relations and 301–09

production-sharing agreements 192, 192n. 17

public spending and societal expectations and 58–70

from Russian gas sector 169n. 73, 169–72, 170n. 75

Russian tax code reforms and 137–44, 142n. 39, 152–56, 178n. 83

small and medium enterprises (SMEs) and 34, 34n. 4

in state ownership with control 46, 79–80

taxation and expenditure in mineral-rich states and 31–44

transaction costs and state ownership with control 51–55

Turkmenistan/Uzbekistan reliance on taxes for 93

Revenue Watch Program (OSI) 210n. 41, 246–52

Road Fund (Uzbekistan) 100–05

road users’ tax, in Russian Tax Code 138n. 32, 138–44

robber barons, in Russia 122

Rodman, K. A 206n. 36

Romania

private domestic ownership in 46n. 3, 121

Standard Oil investment in 196

Rosneftgas Corporation/Rosneft, privatization of 124, 127–32, 128n. 4, 128n. 5, 129n. 8, 131n. 12, 176

Royal Dutch Shell 174–77, 182, 183n. 6

in Azerbaijan 221

corporate social responsibility and 211

in Indonesia 311, 311n. 9

royalties

Azerbaijan revenue from 228–29

Kazakhstan tax revenue from 273, 273n. 20, 292

in production-sharing agreements (PSAs) 191n. 16

ruling elite, institutional constraints on 3–4

rural poor, targeted spending for 39–43, 40n. 14

Russian Federation

See Commonwealth of Independent States (CIS), Russia/Russian Federation

Russian Fund for Federal Property (RFFI) 129–31

Russian General Oil Society 221

Russian oil companies (ROCs)

economic growth of 174, 174n. 79

explicit bargaining by 165–68

foreign investment discouraged in 129–31

foreign investment increased in 173–74

Gazprom and 168–77

governing elites as representatives in 160, 160n. 63

management restructuring of 173n. 78, 173–74

Russian expenditure reforms and 151

societal expectations and attitudes of 163n. 66, 163–65, 164n. 67, 164n. 68

tax reform and 122–24

transaction costs for 134–36, 152–56, 153n. 54

Russian Tax Code, reformation of 135n. 26, 137–44, 158–59, 166–68

Russia/Russian Federation

bankruptcy and insolvency regulations in 155–56, 156n. 56

broadening of tax base in 137–44

commodity crisis in 136, 136n. 27

compliance rates for taxation in 140–44, 142n. 38, 143n. 40, 158–59, 159n. 62, 331–35

democratization in 323–27

distributional conflict in 308–09

domestic private owners 121–80

economic diversification in 123n. 2, 140–44

expenditure reforms in 144–52, 331–35

explicit bargaining in fiscal regime of 165–68

fiscal regime strength in 134n. 25, 134–36, 135n. 26, 152–68

foreign invesment in oil sector of 26, 129n. 9, 129–31, 131n. 11, 155n. 55, 155–56, 202n. 30

gas sector privatization in 56–57, 132n. 16, 132–34, 133n. 18, 168–77

history of petroleum industry in 24

integrated pipeline systems in 26n. 26

oil boom in 136, 136n. 28

oil reserve estimates in 25–26, 202

oil sector privatization in 127–32, 168–77

ownership structure in 19n. 14, 19–27

petroleum rents as political weapon in 23

petroleum wealth in 26, 323–27

private domestic ownership in 46n. 3

private sector growth in 148n. 48, 148–49, 159–60

privatization potential in 122

regional oil fields in 24n. 21

shadow economy and tax reforms in 138–44, 139n. 35

societal expectations in 157–65

state takeover of oil sector companies in 131n. 12, 131n. 13, 131–32

tax reform in 122–24, 134–36, 135n. 26, 232–33

transaction costs and fiscal regime 134–36, 152–56

Sachs, Jeffrey 322

safety regulations, foreign investor commitment to 191–94

Sakhalin Energy Investment Company Ltd. (SEIC) (Russia) 174–77

Sakhalin Island oil reserves, foreign investment in 26

Samruk 298, 298n. 43

Saudi Arabia

Aramco contract with 190, 196–97, 199n. 26

rent-seeking behavior in 64

tax system in 61–62, 62n. 27

Tripoli Agreement and 207n. 37

SaudiAramco 63n. 29

Save the Children 200, 256, 322

savings funds, economic impact of 41–42

Schlumberger, Turkmenistan oil and gas service agreements 84

scope of tax base, in mineral-rich states 33–34

Securities and Exchange Commission (SEC) 166n. 71

Seko, Mobutu Sese 52

shadow economy

See informal economy

Sharifov, Samir 239–42

Shatalov, Sergey Dimitrievich 121, 154, 166–68

Sibneft oil company 128–31, 154, 174–77

Sidanco oil company 128–31

Sinopec 293

Slavneft oil company 129–31

small and medium enterprises (SMEs)

Azerbaijan hybrid fiscal regime and 256–58

Azerbaijan taxes on 230, 231–32

Kazakhstan tax revenue from 269–74

Russian tax reductions for 137–44, 159–60, 177–80

targeting of Azerbaijan refugee population for 237

tax system and 34, 34n. 4

Turkmenistan/Uzbekistan taxation of 93, 116–20

small foreign oil companies, historical rise of 13–16

Sobyanin, Sergei Semyonovich 151

SOCAR (Azerbaijani oil company) 24–25, 224n. 10, 224–26, 225n. 13

coercion of 252–56, 256n. 51

expenditures by 237–42

internal energy consumption requirements and 234

revenue generation from taxation of 228–29

societal expectations concerning 246–52

transaction costs for 244–45

workforce size and labor productivity in 238–39, 239n. 31

social infrastructure maintenance tax, in Russian Tax Code 138n. 32, 138–44

social relations, ownership structure and 9–11

social spending

See expenditures

social transfers, geographical distribution of petroleum wealth and 186–87

societal expectations

in Azerbaijan 220–22, 246–52

corporate social responsibility of foreign investment and 199n. 26, 199–204

domestic private owners and 65–70

foreign investment influence on 204–15

governing elites’ perceptions of 74–76

historical evolution of 13–16

in Kazakhstan 286–91

in mineral-rich and rentier-states 331–35

model contract and 208

ownership structure and 11–13

private foreign ownership and (P2) 183–89, 195–204

research methodology concerning 28–30

Russia’s fiscal regime and 157–65, 168–77

in Soviet successor states 20–27

state ownership with control vs. private domestic ownership 58–70

state ownership without control and 183–89, 195–204

in Turkmenistan 107–14

Uzbekistan petroleum development and 79–80, 107–14

Socony-Vacuum (Mobil) 183n. 6

Soiunov, Nazar 82–83

Sonangol (Angola oil company) 192

Sonatrach oil company 53, 53n. 16

South Caucasus Pipeline (SCP) 253n. 46

Southeast Asia, petroleum reserves in 202, 209

Soviet successor states

comparisons of petroleum wealth in 18

democracy scores for 323–27, 326n. 3

energy rents in 78

lack of private sector growth in 97

oil reserve estimates in 25–26

ownership structures in 319–21

petroleum quality and extraction difficulty in 26

petroleum wealth and fiscal regimes in 16–27

tax systems in 87–94

See under specific states, e.g., Russia/Russian Federation

Soviet Union

gas sector production and revenues in 169–72

history of petroleum production and 24n. 23, 24–25

ownership structure in 182n. 1

petroleum wealth in 323–27

See also Russia/Russian Federation

“Sow the Petroleum” proclamation (Venezuela) 195n. 23

stabilization funds, economic impact of 41–42

standardization, transaction cost minimization and 189n. 8

Standard Oil of California 183n. 6, 205

Standard Oil of New Jersey 182, 183n. 6

state formation

revenue generation and 31, 31n. 1

social spending and 58n. 22, 58–70

State Fund Finally, for the Development of the Oil and Gas Industry and Mineral Resources (SFDOG) (Turkmenistan) 100–05, 116, 118–20

State Investment Committee (Kazakhstan) 264–65, 265n. 12

transaction costs and 285–86

state leaders’ decision-making

criteria in developing countries for 311–12, 312n. 12

distributional conflict and 301–09

transaction costs and 51, 51n. 13

See also decision-making by elites

State Oil Fund of Azerbaijan Republic (SOFAZ) 227–29

expenditures by 237–42

National Fund of the Republic of Kazakhstan and 278–81

societal expectations concerning 246–52

transfers to state budget from 242–44

state-owned enterprises (SOEs)

Azerbaijan tax revenue for support of 228–29

economic growth linked to 62–64

enterprise profit taxes and 36n. 7, 36–38

foreign investors and 193–94, 215–184

governing elites’ revenue transfer to 52

Kazakhstan expenditures and 274–81

in mineral-rich states 6

mineral sector taxation and 34–38

normative bias toward 27–28

oil sector shareholding and 129–31

personal income taxes and 36

power relations with foreign investors and 206–07

revenue-cost relationships and 301–09

Russian economic reforms and subsidy reduction to 131–132, 149

in Russian gas sector 132n. 16, 132–34, 133n. 18, 133n. 19, 133n. 20

Russian mineral wealth privatization and 124, 159, 161–63

Russian oil sector takeover by 131n. 12, 131n. 13, 131–32

social relations and 9–11

societal expectations and 197–99

Soviet-era activities of 164, 164n. 70

state ownership without control and 183–89

transaction costs and 50–58

Turkmenistan/Uzbekistan comparisons of 81–87, 116–20

Uzbekistan popular support for 110–14

variations in 7–9

state ownership with control (S1)

boom and bust cycles and 60–61, 64

defined 8

delayed development of resources in 47, 79–80

domestic politics and 299–321

economic growth linked to 62–64

fiscal regime stability and 11–13, 48–49, 116–20

foreign investment and 48, 48n. 7

historical context for 13–16, 28

internal consumption of resources in 47, 79–80

Kazakhstan transition to 296–98

leadership preferences and 301–09

mineral development delay and internal consumption under 47

national oil companies under 46

negative outcomes linked to 74–76

number of petroleum-rich states with 46n. 2

in Persian Gulf States 52, 52n. 14

petroleum-rich countries’ adoption of 219, 219n. 2

power relations and 70–76

private domestic ownership vs 45–76

privatization of Russian petroleum and 124

relationships under 11

research methodology concerning 28–30

resource curse thesis and 322–23

of Russian oil and gas sectors 127–32, 168–80

societal expectations under 58–70

in Soviet successor states 19n. 14, 19–27

state leaders’ decision-making and 301–09

taxation systems and 61n. 26, 61–70

transaction costs and 51–55

Turkmenistan authoritarian regime and 77–120

Uzbekistan authoritarian regime and 77–120

state ownership without control (S2)

in Azerbaijan 219–58

defined 8

domestic politics and 299–321

fiscal regime stability and 11–12, 183–86

foreign investment and 193–94, 215–184

governing elites and 183–89

historical context for 13–16, 28

hybrid fiscal regimes and 210–15

Kazakhstan petroleum industry and 259–98

leadership preferences and 301–09

in Persian Gulf States 52n. 14

petroleum-rich countries’ adoption of 219, 219n. 2

private foreign ownership and 181–84

rentier-state expenditures and 331–35

research methodology concerning 28–30

resource curse thesis and 322–23

societal expectations and 195–204

sovereign decision-making and 301–09

in Soviet successor states 19n. 14, 19–27

transaction costs of 183–86, 189–94

triadic relationships in 11

in Uzbekistan 119–20

StatoilHydro

Azerbaijan hybrid fiscal regime and 256–58

coercion in Azerbaijan and 252–56

corporate social responsibility and 211

foreign oil company expenditures in Azerbaijan by 235, 237

management structure of 48n. 7

South Caucasus Pipeline (SCP) and 253n. 46

St. John, Karen 233–34

Stolichnyi Bank 128–29

“Strategy for the Social and Economic Transformation of Turkmenistan,” 96, 96n. 40

“Strategy for Turkmenistan Development to 2020,” 96

strong fiscal regime

characteristics of 11–13

emergence in Russia of 134–36, 152, 177–80

oil and gas industries and presence of 168–77

power relations and 70–76, 204–15

private domestic ownership and 320

societal expectations and 58–70

state ownership without control vs. private ownership and 188–89, 212

tax systems and 121–24

Subsurface Law (Kazakhstan), transaction costs and 285n. 34, 285–86

sunk costs of foreign investment, obsolescing bargain theory and 207–08

supply

domestic private owners and incentive of 65–70

institutions as product of 11–13

“supra-sovereign” constraints 205, 205n. 33

Surgutneftegaz

“loans for shares program” and 128n. 7, 128–29

as vertically integrated joint-stock oil company 121, 127–32

Surowiecki, James 45

Swarnim, W 323–27

targeted spending 39–43, 40n. 13, 40n. 14

Tasmagambetov, Imangaly 269, 278–81, 291

Tatneft oil company 129–31

taxation

in Azerbaijan 220–22, 226–33, 252–56

broad-based tax systems 34–38

coercion and 252–56

compliance rate comparisons 140–44, 142n. 38, 143n. 40, 158–59, 159n. 62, 231–32, 232n. 19

composition of 33–34

direct vs. indirect taxes 33–34, 34n. 3

domestic private owners and 65–70, 66n. 32

economists’ view of 33n. 2

expenditures and 31–44, 61n. 26, 61–70

fiscal regime stability and 11–13, 33–38, 74–76

foreign investor influence on 183–86, 210–15

implicit bargaining and 114–16

implicit vs. explicit taxation 34

institutional support for 3–4

in Kazakhstan 266–74, 285–86

in mineral-rich states and rentier states 331–35, 334n. 9

multiple revenue sources for 34–38

in private domestic ownership structure 57, 57n. 20

production-sharing agreement revenues and 192, 192n. 17

profit-sharing in 14

in Russia 122–24, 134n. 25, 134–36, 135n. 26, 137–44, 152–56, 153n. 53, 153n. 54, 157–65, 158n. 60, 169n. 73, 169–72, 170n. 75

scope of 33–34

societal expectations of foreign investment and 197–99, 201–04

in Soviet successor states 19–27

state control structures and 34–38

state formation and 31, 31n. 1

transaction costs and 50–58, 152–56, 153n. 53, 153n. 54, 285–86

transparency and 32–33

Turkmenistan/Uzbekistan comparisons of 87n. 27, 87–94, 110–20

Technip company 86

technology, ownership structures and 314–15, 315n. 15

Tehran Agreement 206–07

TengizChevroil (TCO) 263, 266–69, 274–81, 292–93, 295–96

Texaco oil company 78n. 3, 183n. 6, 205

in Kazakhstan 265–66

merger with Chevron 209n. 40

Thomas, Marlo 268

time horizons, societal expectations for public spending and taxation and 62

transaction costs

foreign investment in Azerbaijan and 244–45

historical context of ownership structures and 13–16

of information disclosure 72–73

Kazakhstan fiscal regime and 285–86

model contracts and 208

ownership structure and 11–13

private domestic ownership and 45, 55–58, 122, 134–36

private foreign ownership and 183–86, 189–94

research methodology concerning 28–30

Russian fiscal regime strength and 134–36, 152–56

of Russian oil and gas sectors 168–77

Soviet successor states’ ownership structure and 20–27

state ownership with control and 45, 54–55

state ownership without control and 183–86, 189–94

theory of 50–58

in Turkmenistan/Uzbekistan fiscal regimes 105–07

transfer pricing, Russian oil companies’ use of 152–56

Transocean oil company 48n. 9

transparency

foreign investors and host countries relations and 42–43

Natural Resource Funds and, 17 41–42

tax/expenditure systems and 32–33

triadic relationships

fiscal regimes and ownership structure and 181–189

historical evolution of 13–16

national oil companies and 46

in private domestic ownership structure 47–48

private foreign ownership and 182–89

in state ownership with control 11

state ownership without control and 183–89

Tripoli Agreement 206–07, 207n. 37

Triton-Vuko oil company 264

Tunisia 328

Turkmen Foreign Exchange Reserve Fund (FERF) 88, 100–05, 116

Turkmengaz 83–84, 105–07, 106n. 49

Turkmengeologiya 83–84

Turkmenistan

bribery and corruption in 117–18

central planning in 96, 96n. 40

consumer subsidies in 101, 102n. 44

direct vs. indirect taxation in 93

emergence as petroleum-rich state 20–27

extrabudgetary funds in 100n. 42, 100–05

fiscal regime and petroleum wealth in 16–27, 87–120

foreign exchange regime in 90

foreign investment in petroleum in 25n. 25, 77–79, 78n. 3, 82–85, 84n. 15, 202n. 30

fuel subsidies in 77, 98–100, 237–42

gas sector development in 79–80

implicit bargaining in fiscal regime of 114–16

implicit taxes in 90

“national prestige” projects in 104

oil reserve estimates in 25–26

ownership structure in 19n. 14, 19–27

petroleum sector growth in 78–79, 81–87, 82n. 8, 326n. 3

private sector growth limitations in 97, 148n. 47

production quotas and price controls in 90

public addresses as reflection of societal expectations in 108–10

public opinion surveys in 107n. 51, 107–08

public sector spending in 95–116, 96n. 41, 118–19, 242–44

quasi-fiscal activities in 80–81, 97–101

Russian expenditure reforms compared with 144–52

societal expectations in 107–14

state ownership with control (S1) in 81–84

taxation in 87n. 27, 87–94, 88n. 28, 88n. 30, 116–20

transaction costs of fiscal regime in 105–07

value-added tax in 88, 91n. 39, 91–93

Turkmenistan Central Bank 100n. 42

Turkmenneft 83–84, 84n. 16, 85n. 19, 105–07

Turkmenneftegaz 83–84

Turkmenneftegazstroy 83–84

turnover taxes

in Kazakhstan 269–74

in Russian Tax Code 137–44, 138n. 32

Tyumen Oblast 151, 151n. 51

Tyumenskaya Neftyanaya Kompaniya (TNK) 129–31, 154

Ukraine

natural gas delivery crisis in 23

private sector growth in 148n. 47

Turkmenistan gas exports to 82, 82n. 9

UMID (NGO) 235–37, 236n. 27

UN Global Compact 209

Unified Energy Systems (UES) (Russia) 170

unified social tax (UST), in Russian Tax Code 135n. 26, 137–44

United Heavy Machinery 174–77

United States

excess profits taxes in 67–68

internal mineral and petroleum consumption in 47

private domestic ownership in 47–48

universal benefits

Kazakhstan non-mineral sector expenditures on 282–83

Russian economic reforms and reductions in 149–51, 150n. 50

societal expectations and 58–70

state ownership without control and 183–89

targeted spending vs 39–43

Turkmenistan societal expectations and 108–10

Unocal oil company 78n. 3

UN Resolution on Permanent Sovereignty over Natural Resources 10

Urengoigazprom 171

utility maximization, power relations and 71

Uzbekistan

bribery and corruption in 117n. 60, 118–20

consumer subsidies in 102–04

delayed development of petroleum in 79–80

direct vs. indirect taxation in 93

distributional conflict in 303–04

emergence as petroleum-rich state 20–27

energy rents in 78

extrabudgetary funds in 100–05

fiscal regime in 16–27, 87–120

foreign exchange regime in 90, 91n. 37

foreign investment rejected in 25n. 25, 77–79, 78n. 3, 85n. 23, 85–87, 202n. 30

fuel subsidies in 98–100, 237–42

history of petroleum production in 24n. 23, 24–25

implicit bargaining in fiscal regime of 114–16

implicit taxes in 90

imports into 79–80

informal economy in 117n. 62, 117–18

internal petroleum consumption in 21n. 15, 80–81

lack of private sector growth in 97, 116–20, 119n. 65, 157

mineral development delay and internal consumption in 47

ownership structure in 19n. 14, 19–27

petroleum reserve estimates in 25–26, 78

petroleum sector growth in 78–79, 79n. 6, 79n. 7, 85–87, 86n. 25, 301–09, 326n. 3

popular support for state-owned enterprises in 110–14

production quotas and price controls in 90n. 34, 90n. 35, 90

public opinion surveys in 107–08, 110n. 56, 110–14, 159

public sector spending in 95–116, 118–19, 242–44

quasi-fiscal activities in 80–81, 97–101

Russian expenditure reforms compared with 144–52

societal expectations in 107–14, 246

state ownership with control in 85, 225–26

state ownership without control in 119–20

taxation in 87n. 27, 87–94, 88n. 29, 116–20, 232–33

transaction costs of fiscal regime in 105–07

value-added tax in 88, 91n. 38, 91–93

Uzbekneftegaz 79n. 6, 85–87, 90, 105–07

Uzneftegazpererabotka 86

value-added tax (VAT)

Azerbaijan revenue from 228–33, 232n. 19

increased reliance on 35n. 5, 37, 38n. 12

in Kazhkstan 266–74, 292

in Russian Tax Code 135n. 26, 137–44, 140n. 36, 141n. 37

in Turkmenistan and Uzbekistan 88, 91n. 38, 91n. 39, 91–93

Venezuela

democratization and petroleum wealth in 326n. 2

economic decline in 76

foreign investment in petroleum in 195n. 23

governing elites’ mismanagement in 52–53

national oil company management in 54, 54n. 17, 54n. 18, 61

private domestic ownership in 121

Venezuelan Investment Fund 54–55

Vernon, R 207–08

vertically integrated companies (VICs)

power relations in 205

privatization of Russian petroleum industry and 124

Russian government support for 131n. 14

Russian oil sector reforms and 127–32

Viakhirev, Rem 172

Vostochnaya Neftyanaya Kompaniya (VNK) oil company 129–31

voucher privatization

in Russian gas sector 132–34, 133n. 18

in Russian oil sector 127–32

Vyakhirev, Rem 133n. 19, 133n. 21, 133–34

wages as state expenditures, Uzbekistan reliance on 119n. 66

Waterbury, John 37n. 9, 332–33

weak fiscal regime

characteristics of 11–13

emergence of 87–120

Gazprom restructuring and 173

governing elites’ preference for 74

Natural Resource Fund creation and 54–55

power relations and 70–76, 204–15

private domestic ownership and 48–49

rentierism and 43–44

resource curse and 1–4, 27–28

societal expectations and 58–70

in Soviet successor states 19–27

state ownership with control and 15–16, 48–49, 53, 188–89

in Turkmenistan/Uzbekistan 29, 80–81, 179

“wealth” curse

democratization and 323–27

in Nigeria 1

ownership structure and 6–9

path dependency and 327–30

petroleum abundance vs 309–16

Weber, Max 31

welfare spending

in Azerbaijan 220–22

Azerbaijan non-mineral sector expenditures on 242–44

governing elites’ benefits from 74–76

Russian economic reforms and reductions in 149–51, 150n. 50, 161–63, 162n. 65, 167–68

societal expectations and historical trends in 58–70

wheat subsidies, in Turkmenistan/Uzbekistan 99–100

“white elephant” public projects, societal expectations and 52–53, 60

windfall profits taxes

See excess profits taxes

Woodward, David 219, 227, 253–56

World Bank 40, 200n. 27, 200–01

on Kazakhstan taxation 269–74

National Fund of the Republic of Kazakhstan and 278–81

on SOCAR financial performance 228–29

wealth and path dependence measurements 327–30

Yacimientos Proliferos Fiscales (YPF) 46

Yamburggazprom 171

Yeltsin, Boris 127, 135, 137, 148, 158, 160–63, 308–09

Yemen ownership structure 315n. 16

Yew, Lee Kwan 45

Young, Oran 58n. 22

Yuganskneftegaz 131–32, 176, 176n. 82

Yukos oil company 25n. 24, 158, 160, 174n. 79

corporate social responsibility (CSR) in 163–65, 164n. 69

state takeover of 131n. 12, 131–32, 177–80

transaction costs for 154

as vertically integrated joint-stock oil company 121, 127–32

Yuzhneftegaz 263, 274–75, 293–96

Zaire

See Democratic Republic of Congo




© Cambridge University Press
printer iconPrinter friendly version AddThis