.1970 In Saudi Arabia Since The Economic Analysis, Development And Stagnation Of The Reasons

Saudi Arabia made a prosperous economy with oil boom in the 1970s.But then the economy of Saudi Arabia made a slow progress, was even stagnate. As some research fellows pointed out that the state is based on the raising price of oil. However, author analyzed that with institutional economics and clasped some conclusions. First, Saudi Arabia identified the right of possession, which made a prosperous economy in the 1970s, but the dual character of government hinders them of making an economic progress in the mid-1980s. Second, the demand produced by oil boom expanded rapidly. At the same time the supply of domestic economy couldn't be fit with that. The balance of them was broken, so that it shown the stagnation of economy. Third, as a small country in economy, Saudi oil boom attached itself to global economic system indeed, so that which resulted in the stagnation in the 1980s.Fouth, human resource was exploited unreasonably which resulted in the boom in the 1970s,and the stagnation in the 1980s and the 1990s. So we can draw a conclusion that if Saudi Arabia sought development, it must be changed in many fields including politics, economic system and social structure.