Oil Booms and Business Busts looks at how government policymaking shapes a puzzling phenomenon in economic development-the "curse" of natural resources. It investigates how oil and mineral wealth shapes a government's policies toward the business environment, entrepreneurs, and innovative activities. Other similar work either ignores the role of government policymaking in oil wealth, treats it as another effect of the rentier state, or dismisses it as illogical and incoherent. One might expect that in light of such abundances governments would encourage entrepreneurship and new businesses to compete and grow in the market, but Nimah Mazaheri shows that resource wealth instead incentivizes policymakers to focus on satisfying the interests of existing elites. They, more than oil-poor nations, institute barriers that impede the activities of domestic firms and entrepreneurs, with the result being unimpressive economic performance over the past half-century. This is the first book to examine how oil wealth affects non-elite actors who own the small and medium-sized firms that absorb a majority of the economic and labor force of these countries. Looking at two of the most important oil-producing countries in the world, Iran and Saudi Arabia, the book provides an original theory about the factors that shape a logic of policymaking in oil producing states. To extend his theory Mazaheri also looks at India, which is one of the world's main coal producers. He does this to show the effects of the gain and loss of a massive resource windfall on state policymaking toward the private sector. Ultimately Mazaheri argues that such policymaking impedes the development of a middle class and therefore democratization-a factor that can have overarching political repercussions for governmental stability.

Many nations that are rich in oil and natural resources are plagued by undemocratic politics, war and civil conflict, corrupt governments, and volatile economies. Scholars have pointed to a "resource curse" as a root of the problem: the notion that valuable natural resources are connected to serious social, political, and economic problems. Entirely missing from the story, however, is an understanding about the role of the public in oil nations-specifically, the attitudes, values, and ideals they hold about important social, political, and economic issues. In Hydrocarbon Citizens, Nimah Mazaheri tells the story of how the discovery of oil dramatically transformed politics and society in the Middle East. He argues that the creation of oil-dependent economies cultivated a new type of citizen in the region: the "hydrocarbon citizen." These citizens hold attitudes, values, and beliefs about their governments and national politics that are very different from what is observed in countries that do not produce oil. Hydrocarbon citizens tend to view their governments as highly effective, generous, helpful, and responsive to the basic needs of society compared to the citizens of countries without oil. Hydrocarbon citizens also tend to be skeptical about the merits of democratization and more likely to believe that democratic governments are ineffective, unstable, and full of problems. Including a rich historical discussion, in-depth analysis of public opinion data, and original surveys conducted among Saudi Arabians and Emiratis, Mazaheri offers a new way of understanding the puzzling "resource curse" that has afflicted mineral-dependent nations around the world. Moreover, he provides a new way of thinking about current politics in the Middle East and explains why some of the region's long-lasting autocracies have been successful in resisting the rise of democracy.