Optimistic and pessimistic energy rent deployment scenarios for Azerbaijan and Kazakhstan

This chapter assesses the impact of increased energy rents on the two oil-rich CCA states, Azerbaijan and Kazakhstan. We have already established that oil rents can be a blessing or a curse, depending upon the nature of the political state. Under a developmental political state the natural resource rents from oil exploitation can facilitate economic reform by expanding the capacity to import and invest, and thereby accelerate the economic restructuring that will sustain rapid PCGDP growth.