| Abstract: | High rent creates contests for its capture that, unless skilfully managed, degrade political institutions and distort the economy, leading to a collapse of growth if unreformed. Mauritania's projected oil stream risks such an outcome because past rent‐driven growth has left a legacy of Dutch disease effects, rent‐seeking and dependent social capital. This article proposes a dual‐track strategy for deploying the oil rent as a politically practical means of managing social tensions and improving the economic outcome. Track one promotes a dynamic market economy in the hitherto neglected rural areas, while track two gradually reforms the rent‐driven urban sector, thus postponing confrontation with established rent‐seekers while the dynamic sector drives competitive diversification of the economy and builds a pro‐reform political constituency. |
