Volume 27, Number 8 · May 15, 1980
The Rich Arab States in Trouble
By Arnold Hottinger
A careful analysis of the situation among the oil-producing states on the Persian Gulf reveals how simplistic is the view that the more money such a country earns the more 'secure' it is. In reality the very opposite may be correct. During the first ten or twenty years after oil revenues have begun to flow, it is relatively easy to channel the funds in such a way that the population is satisfied and approves of the way government affairs are being managed. In a rich oil-producing country, government affairs consist largely of handing out the money. When this is done in a sensible manner, the government can be reasonably sure of popular support. Certain services are widely regarded as having priority and governing officials know that these must be provided: health and education, then housing, road construction, jobs. During the first generation of national prosperity it is much easier than it will be later to satisfy the needs and wishes of the populace, because the memory is still fresh in their minds of how living conditions were before the oil wealth began to flow.
Feature, 2460 words
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