What impact has the production of oil have on saudia arabia and the persian gulf states?
Answer:
Production of oil has made the Kings/ Chieftails and their relatives rich and very rich. But they have very little of their own own work force. They depand on outside labor. They import manual labor from poor countries for the benefit/ luxaries and meeting the fancies of the rich Arab families. The extent of autocracy has increased as the kings have become very wealthy and adopted the best of Western Standars of living, except that the women are still under the cluthches of men. Essentially, they are rich monarchies with Islam as a weapon to control the social culture that sustains monarchy life. It is the modern version of ancient landlordism. A great rentier class. Just think if all the chieftains in Afganistan had oilfirlds in the respective strongholds.
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In the case of Kuwait, this country has the most inefficient economy on earth because of the way the oil money is distributed to its citizens. In effect, you only get a share of the oil money if you agree to do no useful work.
This is because the government distributes the oil money by giving every citizen a high paying job with the government. With so many people working for the government, most do very little work. They spend their time reading the newspaper and drinking tea and then they go home for lunch and don't return.
With every citizen working for the government, who does the rest of work in the economy (build houses, waiters in restaurants, clean hotel rooms, etc). This is all done by foreign workers which probably outnumber the Kuwaiti citizens.
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