Can the Duch Disease in Saudi Arabia be cured?

Yossi Mann

Many studies have been performed on Saudi Arabias economic problems. Much of the research attributes these problems to Saudi Arabias lack of democracy, heavy dependence on oil, large population increase, dependence on foreign workers, poor educational system, lavish subsidies to its citizens, inflated defense budget, and high domestic consumption. The present research makes use of the Dutch Disease theory to explain the basic problems in the Saudi economy, and through it to suggest explanations for social phenomena that influence the countrys economy. This article claims that the Saudi Arabian case is not unique and that Saudi Arabia is one of a group of countries that suffer from the problem known as the Dutch Disease, and that the solution should therefore be sought in countries that suffered from it and were able to find a cure.