Authoritarian Bargaining and Economic Sabotage in the Arabian Gulf by Trevor T. Johnston A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy (Political Science) in The University of Michigan 2015 Doctoral Committee: Professor William Clark, Co-Chair, Texas A&M University Professor Anna Grzymala-Busse, Co-Chair Assistant Professor Mark Dincecco Professor Anne Pitcher Professor Mark Tessler © Trevor T. Johnston 2015 All Rights Reserved ACKNOWLEDGEMENTS I will endeavor to keep this brief. Thanks first to my dissertation committee: Anna Grzymala-Busse, Bill Clark, Mark Tessler, Mark Dincecco, and Anne Pitcher. They were invaluable during the dissertation process, providing vital support and feedback throughout my circuitous journey. To enumerate the myriad ways that they helped would surely make my goal of brevity impossible. So instead, I will simply say, thank you. ff Beyond my dissertation committee, various faculty, sta and (most importantly) students at the University of Michigan have been a constant and indispensable source of support. I have been fortunate to meet an incredible group of brilliant, hilarious, and compassionate scholars while in graduate school. And without them, this project would not be what it is today. Nor would I would be the same person I am today. Thank you, my friends. Finally, I thank my family for their support, which is all too often taken for ffi granted, and for which no words of gratitude are su cient. My brother Travis has been my most patient listener, loyal supporter, and honest critic. No one has had a greater influence on this project than he has. Thank you, Travis. And I close with words for my wife, Jordie. You are my best friend and my fiercest defender. All of this is for you, my girl. Thank you. ii TABLE OF CONTENTS ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii LISTOFFIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v LISTOFTABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi LISTOFAPPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii CHAPTER I. The Political Economy of Sabotage: Distributive Conflict in Resource-RichStates . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I.2 Sabotage in Resource-Rich States . . . . . . . . . . . . . . . . 3 I.3 Modeling Allocation and Sabotage . . . . . . . . . . . . . . . 9 I.3.1 Simple Allocation Game . . . . . . . . . . . . . . . 10 I.3.2 Sabotage Game . . . . . . . . . . . . . . . . . . . . 21 I.3.3 Comparative Statics and Empirical Implications . 30 I.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 II. Weapons of the Marginalized: Authoritarian Bargaining Under theThreatofSabotage . . . . . . . . . . . . . . . . . . . . . . . . . . 36 II.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 II.2 Authoritarian Bargaining as Support-Buying . . . . . . . . . 40 II.3 Marginalized Groups and the Threat of Sabotage . . . . . . . 43 II.4 Policy Responses to the Threat of Sabotage . . . . . . . . . . 49 II.5 Segregation and Distributive Targeting in Qatar: An Empiri- cal Test of Sabotage . . . . . . . . . . . . . . . . . . . . . . . . 54 II.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 iii III. Authoritarian Abdication: Bargaining Power and the Role of FirmsinMigrantWelfare . . . . . . . . . . . . . . . . . . . . . . . . 85 III.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 III.2 Non-State Actors and Welfare Provision . . . . . . . . . . . . 88 III.3 Firms and Migrant Welfare in the Gulf . . . . . . . . . . . . 90 III.4 Contracts and Exit Options as Migrant Bargaining Power . . 95 III.5 An Empirical Test of Migrant Bargaining Power . . . . . . . 103 III.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 iv LIST OF FIGURES Figure 1.1 Percent Foreign Population in the Gulf (1970-2010) . . . . . . . . . 7 2.1 The Change in Foreign Population Over Time . . . . . . . . . . . . 46 2.2 The Density of Villas Across Qatar . . . . . . . . . . . . . . . . . . 59 2.3 The Density of Flats Across Qatar . . . . . . . . . . . . . . . . . . . 59 2.4 The Density of Camps Across Qatar . . . . . . . . . . . . . . . . . . 60 2.5 A Heat Map of Utilities Across Zones . . . . . . . . . . . . . . . . . 62 2.6 A Heat Map of General Services Across Zones . . . . . . . . . . . . 62 2.7 A Heat Map of Security Installations Across Zones . . . . . . . . . 63 2.8 A Heat Map of Camps Across Zones . . . . . . . . . . . . . . . . . . 63 ff 2.9 The E ect of Camps on Utilities, Conditional on Government . . . 77 ff 2.10 TheE ectofCampsonGeneralServices,ConditionalonGovernment 77 ff 2.11 The E ect of Camps on Security, Conditional on Government . . . 78 ff 2.12 The E ect of Camps on Utilities, Conditional on Manufacturing . 78 ff 2.13 The E ect of Camps on General Services, Conditional on Manufac- turing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 ff 2.14 The E ect of Camps on Security, Conditional on Manufacturing . . 79 3.1 Aggregate Satisfaction by Zone . . . . . . . . . . . . . . . . . . . . . 96 3.2 Wages and Migrant Satisfaction . . . . . . . . . . . . . . . . . . . . 96 3.3 Camp Size and Migrant Satisfaction . . . . . . . . . . . . . . . . . . 97 3.4 Hours and Migrant Satisfaction . . . . . . . . . . . . . . . . . . . . 97 3.5 Balance Plot for Covariate Matching . . . . . . . . . . . . . . . . . . 118 ff 3.6 The E ect of Contracts on a Matched Sample of Migrants . . . . . 120 3.7 Balance Plot for Covariate Matching on Nepalese Respondents . . 122 ff 3.8 The E ect of Contracts on a Matched Sample of Nepalese Migrants 123 B.1 Clustering of Camps (Around a Camp) . . . . . . . . . . . . . . . . 139 B.2 Clustering of Villas (Around a Camp) . . . . . . . . . . . . . . . . . 139 v LIST OF TABLES Table 1.1 Non-CitizensasaShareofPopulationandWorkforceAcrosstheGulf 6 2.1 Migrant Population and Workforce Across the Gulf . . . . . . . . . 45 2.2 Foreign Workers Across Economic Sectors in Qatar . . . . . . . . . 55 2.3 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . 65 2.4 Sabotage Threat as Proximity to Government Buildings . . . . . . 68 2.5 Sabotage Threat as Proximity to Firms . . . . . . . . . . . . . . . . 70 2.6 Sabotage Threat in Manufacturing Areas . . . . . . . . . . . . . . . 73 2.7 Sabotage Threat in Non-Manufacturing Areas . . . . . . . . . . . . 75 3.1 Non-Citizens Across the Gulf . . . . . . . . . . . . . . . . . . . . . 91 3.2 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . 105 3.3 Job Satisfaction in Qatar . . . . . . . . . . . . . . . . . . . . . . . . 110 3.4 Workplace Satisfaction in Qatar . . . . . . . . . . . . . . . . . . . . 111 3.5 Recommendations of Qatar . . . . . . . . . . . . . . . . . . . . . . . 112 ffi 3.6 Workplace Di culties in Qatar . . . . . . . . . . . . . . . . . . . . 114 3.7 Information on Rights in Qatar . . . . . . . . . . . . . . . . . . . . 115 vi LIST OF APPENDICES Appendix A. Mathematical Proofs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 B. Spatial Clustering and Segregation in Qatar . . . . . . . . . . . . . . 137 vii ABSTRACT Authoritarian Bargaining and Economic Sabotage in the Arabian Gulf by Trevor T. Johnston This dissertation explores bargaining dynamics and distributive conflict across the Arabian Gulf. Welfare outcomes vary widely for marginalized groups in the region, motivating a simple but previously unexplored question: why provide benefits to the marginalized? Few autocrats today rely exclusively, or even principally, on repression to survive. Beyond more traditional coercive measures, autocrats use various distributive goods and policy concessions to coopt elites and build mass support. Some autocrats even go so far as to provide targeted benefits to religiousminorities,disenfranchisedmigrantsandothermarginalizedgroups. This targeting is inexplicable for existing theory, which suggests that authoritarian rule is predicated on the exclusion of such groups. Having been systematically marginalized, we should not expect these otherwise repressed groups to receive targeted benefits. In explaining this puzzling behavior, my dissertation explores ff the role of marginalized groups in the Arabian Gulf, o ering a formal theory of authoritarianbargainingunderthethreatofsabotage. Allautocratsmustsolicitthe support of various groups in society. Whether purchased or coerced, this support does not come cheap, making autocrats dependent on constant production and growth. When marginalized groups are critical to such production, they have the capacity to threaten costly economic sabotage. This threat provides these viii groups with a potential bargaining power that is simply nonexistent in traditional theories of authoritarianism. My model generates a series of testable implications, predicting when sabotage occurs and the conditions under which marginalized groups should receive targeted goods and services. To test these hypotheses, I draw on extensive fieldwork, surveys and spatial data from the Gulf. In the first empirical paper, I focus on the regime-level and consider how Qatar has respondedtosuchpressures. Ishowhowtheregimehaslargelypreventedsabotage throughdistributivepoliciesandspatialplanning. Thesecondempiricalpaperthen considers the micro-level, exploring bargaining between firms and migrants. All told,contractsandcredibleexitoptionsappeartoprovideeventhemostvulnerable workers a means of protection within authoritarian states. ix
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