ASSIGNMENT ID
1008474
SUBJECT AREA Arts entertainment
DOCUMENT TYPE Essay
CREATED ON 9th February 2018

Essay about The Oil Curse

Saudi Arabia is a primarily oil-based economy, with oil being the most crucial component of the country's rapid economic growth since World War II. U.S. geologists found oil in the area in the 1930s, and because exports enlarged most particularly in the 1960s, production and rich earnings have been apparently infinite. The quantity of oil in Saudi Arabia's reserves amounts to close to a quarter of the world's entire oil sources, and today the country produces about 10,000 barrels per day. Because of this, the valuable resource now accounts for 90% of the country's exports and leads to 75% of government revenues annually. During the 1970s, following the Arab-Israeli warfare, Saudi Arabia's economy was one of the fastest growing in the world because of a sharp gain in the value of petroleum. Despite its thriving economy, Saudi Arabia today ranks 82nd in the world on the Index of Economic Freedom released yearly by the Heritage Foundation and the Wall Street Journal because of lack of business liberty, property rights, commerce liberty, and most importantly, freedom from corruption ("Saudi Arabia: Economy"). The nation also ranks 117th out of 150 in democracy (WorldAudit.org). Many scholars and scientists visit Saudi Arabia's rich oil reserves as the main catalyst in the inhibition of freedom from the country, otherwise known as the "resource curse". The resource curse is often defined as the association between a country's excessive number of natural resources and slow economic growth and developmental outcomes instead of other developing countries with less natural resources. In Saudi Arabia, it's oil that retains this painful effect, and just like so many different countries plagued by the "resource curse", the nation has s.. .

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