Lecture: Oil, IPE, and the Gulf
In the news this week
• the US has been operating a base out of Saudi Arabia
• Founding members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela
◦ seek sovereignty over resources
◦ state response to influence of "Seven Sisters"
• now includes: Algeria, Libya, Qatar, UAE; also Angola, Nigeria, Ecuador
◦ Iran, Iraq, Kuwait, Saudi Arabia, UAE = 65% of world oil reserves
◦ Middle East production < capacity
• coordinates oil production, prices, and policies
◦ oil is not a competitive industry
• So, how political is oil re state policy?
◦ 1973 Oil embargo….
Gulf States and the GCC
• established in 1981
• Bahrain, Kuwait, Oman, Qatar, UAQ, Saudi Arabia founded it
• economic integration/cooperation?
• security alliance/balance of threat?
◦ protect from external threat?
◦ domestic unrest?
• changes in Gulf states?
◦ Saudi Arabia
Inter-Arab Relations: Haves and Have Nots
• Oil-Rich • Oil-Pooor
• new states • historic states
• small states • large states
• monarchies • republics
• religious regime • secular regime
• allocation (rentier) • production
• rent sharing b/w states?
◦ short-lived; political payoff not forthcoming
• labour flow; remittances
• power shift?
Political Economy and Oil: Rentier States
• rentier state
◦ depends on ex