Political and Economic Effects of Oil in Saudi Arabia

Published: 2019-09-09 07:30:00
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Saudi Arabia is one of the few Arab countries that has had a stable government and managed to alienate itself from the wars that have struck most of the Arabian countries for years. Saudi Arabia has however, had to fight off opposition and take control of their country through the war in the 1990s but since then it established itself as a stable state and that takes control of its own aspects and models within the country. The country may not have the best democratic models and principles as shared by the Western countries but the approaches used in the country work. The economic conditions of the country are also pristine with many countries and companies looking to invest in the country. Oil is the main source of income and resource and with proper control structures the country has managed to develop and gain from oil in the country for years. This research aims at highlighting the political and economic effects of oil in Saudi Arabia since it is the most explored and highly influential resource across the Arab nations.

In conducting a conclusive research on the economic and political landscape of the country it is important to not only assess the conditions in Saudi Arabia but of the region as a whole. The main focus should however, be on Saudi Arabia and the models and aspects that can be cited to have been changed as a result of oil in the country. The effects of oil on the political landscape and how overall decisions have been affected by the changes in the market conditions for oil in the market. The price shocks across the world and countries not being able to effect the prices of crude oil has been a major challenge for many countries and Saudi Arabia has managed to find a balance for years that has been a major advantage in the highly volatile oil market. The country is not highly affected by Western policies a factor that has led to Saudi Arabia controlling its markets and economy as was exemplified during the Euro Crisis that had hit the world.

There are five sources that have been highlighted to contain critical information on the political and economic landscape of the region. The sources offer an in-depth review of the models adopted by the country and how the political as well as the economic atmosphere have been identified. The sources offer good and creative review of the different models that have been identified in the society. An analysis of the economic and political aspects have been identified with a comparison between different countries and entities also having been highlighted.

Berument, M.H., Ceylan, N.B. and Dogan, N., 2010. The impact of oil price shocks on the economic growth of selected MENA countries. The Energy Journal, pp.149-176.

There is a wealth of sources on the different effects of price shocks that have been identified in the oil business. The oil prices are volatile with countries relying on the international markets for the prices to be charged on a single barrel. Berument, Ceylan and Dogan (2010) offer an insightful review of the different models and approaches that can be identified in the society. The source is good since it offers a comparative approach in the models and aspects that are applied across the Arab nations in the Middle East as well as Africa. There is an in-depth analysis of the economic effects and models that have been identified in the process and individual aspects have also been critically established.

The source is critical in the research since it does not only assess the individual country but compares between different countries across the world. Berument, Ceylan and Dogan (2010), have looked at the economic indicators and the political factors across the different countries giving important aspects and aspects that need to be measured across the country. There are different models that have been established in these countries and aspects that can be controlled and critically measured through individual models and aspects in the countries. One of the weaknesses of the source is with the diversity in the number of countries that have been analyzed there are no in-depth reviews that can be highlighted or made since the data is collected from different countries.

Diamond, L., 2010. Why are there no Arab democracies?. Journal of democracy, 21(1), pp.93-112.

Diamond (2010) on the other hand, assesses the political aspects of the Arab countries and the difference between their democracies with that of the mainstream models in these countries. Diamond (2010), asserts that with the oil producing countries there are different models that have been adopted to ensure that there is control and proper measures that can be identified. The countries do not employ similar democratic institutions and models that are similar to the Western countries since their political landscape is different. Diamond asserts that the development of monarchs and the principles of the people in these regions do not allow for the democratic institution in the world.

The article by Diamond (2010) offers an in-depth look at the political landscape through integrating the past models with the present aspects. The writer derives the different models that have worked and how the countries have managed to employ individual structures over the years through the lack of proper democratic institutions. Diamond (2010), reckons that countries in the Arab have to adopt a dictatorial approach to ensure that they have set out the individual structures and models that are needed in the society through these attributes. The article offers different and more in-depth perspectives in comparison to the article by Berument and others that has drawn comparisons between many countries in the region. However, although it is a good source for the political landscape and issues surrounding the Arab nations, information on the economic atmosphere is scanty and inept. The source is however one of the most critical sources in developing individual models and aspects in the social structures of the different Arab countries as a whole.

Hertog, S., 2011. Princes, brokers, and bureaucrats: oil and the state in Saudi Arabia. Cornell University Press.

Hertog (2011), assesses the economic principles in the oil market and how the political factors of the monarch in the country influences the economic sector. Hertog (2011), offers and insightful piece on Saudi Arabia and the different models that are used with the political and economic landscape being critically examined. The book is critical in the research since it gives all the players and their contributions to the oil business in Saudi Arabia giving an analytical and deep review of the fundamental concepts therein. There are different structures and attributes that have been identified in the book with how critical the monarch and the political aspects influence the models and approaches that are used in the country.

The book offers a better and more concrete empirical evidence in comparison to the two articles above. Since it offers a mixture of the political as well as the economic principles that can be identified in Saudi Arabia it is a nice piece that gives implicit information that is helpful in writing a significant report. There are different aspects and attributes that have since been derived and information that can be derived with individual models and attributes being discussed and highlighted in the specific aspects that have been structurally derived in the individual tenets. Hertog (2011), has given all the aspects influencing trade and market differences in Saudi Arabia for oil but fails to make a comparison with other countries and identify the countrys position. There is a need for comparative statistics and aspects a factor that has been disregarded by the author.

Luciani, G., 2013. Oil and Political Economy in the International Market. International relations of the Middle East, p.103-180.

The resource is also helpful in giving all the political and economic aspects in different countries and their overall effect on each other. Since the sources above have all been looking at the Middle East and Saudi Arabia in particular, the article by Luciani (2013) offers an in-depth view of the larger international market. Luciani (2013), highlights the different actors and their influence on the political as well as the economic landscape. It assesses the powerful players in the market and the political as well as economic capital that each of these countries have that has made them position themselves perfectly in the market. There are differences in the attributes and models that are established in the society with differences and qualities being assessed on individual tenets and development structures in these countries.

The source is important in the research since it helps in understanding and augmenting other sources that have been highlighted. With the different views and sources of economic and political power in the international market, the research gets a perspective and formulates the best approach to understanding the resources. It is therefore a critical concept that has identified and developed important details and models that are critical to the development of the best structures for the research.

Tsui, K.K., 2011. More oil, less democracy: Evidence from worldwide crude oil discoveries*. The Economic Journal, 121(551), pp.89-115.

Tsui (2011), assesses oil on the basis of its influence on democracy. The article mainly assesses the political aspect and impact that oil has on countries such as Saudi Arabia and its influence all over the world. In Saudi Arabia and other Arabian countries that have a large wealth in terms of oil there is evidence of lack of democratic institutions and democracy. The same observations are shared by Diamond (2010) above when he asserts that there are no democracies in the Arab world. The article offers an informative view on the reasons for the differences that are identified across different countries and how these aspects affect Saudi Arabia and other Arab countries.

It is an important source in writing the research since it offers a different and important perspective on the effect of oil on democratic institutions. There is an in-depth review of the models that are generally used and how these countries manage to foster peace with the use of autocratic principles in their countries. However, its main weakness is that although the information offered is viable it lacks in its ability to offer a lot of information on the individual models and attributes on Saudi Arabia as a single country or nation and has a largely generalized principle.

sheldon

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