After three decades of internecine war, Abdul-Aziz bin Saud, allied with the fundamentalist Wahhabist Islamic sect, consolidated the House of Saud’s dominance over Arabia in 1932 with the tacit support of regional imperial power Great Britain. The bedrock of the Saudi Arabian economy, the massive pool of oil in the Al-Hasa region along the Persian Gulf coast, was discovered in 1938 and development began in 1941. Towards the end of World War II, President Roosevelt and Abdul-Aziz reached a handshake deal that has governed relations between the two nations ever since: Saudi Arabia would guarantee the flow of oil to the US at a reasonable price; the US would protect the Saud regime.
Like so many born into wealth, the House of Saud has mistaken fortuitous circumstances for divine favor, haughtily condescending to a world that goes along with its pretensions because of its oil. Saudi Arabia is dependent for its security and armaments on the west, particularly the US. No particular skill is necessary to extract (its reserves are among the world’s shallowest and easiest to tap), transport, or export its oil. It exports most of its oil because it has little industry, although its riches have made it a financial center and funded one of the world’s most generous welfare states. Much of the actual labor is performed by immigrants. The partial diversion of oil revenues has kept the non-House of Saud population pacified.
No comments:
Post a Comment