29 Apr '11, 2pm

Gulf Nations’ Social Policies Playing Role in Oil Price Rises, Report Says

29 Apr 2011: Gulf Nations’ Social Policies Playing Role in Oil Price Rises, Report Says The generous social benefits being doled out by Saudi Arabia and other oil-rich Persian Gulf nations are contributing to high oil prices , according to a report by the energy advisory firm, PFC Energy. The report said that populist spending programs, which have recently become even more generous in an effort to ward off the social unrest that has swept much of the Middle East, are forcing some Arab OPEC countries to keep oil prices high to pay for generous social policies. Such policies include high government salaries, direct payments to citizens, “payoffs” to the religious establishment, housing allowances, and large subsidies to keep gasoline prices low. “Today’s high oil prices facilitate the financing of the expansive spending packages that [Saudi] King Abdullah has recently announ...

Full article: http://e360.yale.edu/digest/gulf_nations_social_policies_...

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