Oil and Institutional Stasis in the Persian Gulf

Abstract

Oil has seriously impacted the institutional development of the state in the Arabian Peninsula. More specifically, the sudden and unprecedented acquisition of massive oil revenues resulted in the freezing of the state’s formal and informal institutions, at the point at which petrodollars were injected into the state’s coffers. From then on, state leaders were able to deploy the state’s wealth to dictate the pace and direction of institutional change. Over time, any institutional change has been directed towards enhancing regime security, and the pace of change has been calculated and deliberately slow. Any political opening has been dictated by the logic of state power maximization (in relation to society). At the same time, partly to ensure its popular legitimacy and partly through the vision of its leaders, the state has deployed its massive wealth both to foster rapid economic and infrastructural development, and to enhance the living standards of its citizens. In other words, whereas oil may have stunted institutional development –– i.e., an institution’s curse –– it has been an economic blessing.