Iowa State University Capstones, Theses and Retrospective Theses and Dissertations Dissertations 1983 Underdevelopment in a capital-rich economy Ahmed H. Senani Iowa State University Follow this and additional works at: https://lib.dr.iastate.edu/rtd Part of the Sociology Commons Recommended Citation Senani, Ahmed H., "Underdevelopment in a capital-rich economy " (1983). Retrospective Theses and Dissertations. 8959. https://lib.dr.iastate.edu/rtd/8959 This Dissertation is brought to you for free and open access by the Iowa State University Capstones, Theses and Dissertations at Iowa State University Digital Repository. It has been accepted for inclusion in Retrospective Theses and Dissertations by an authorized administrator of Iowa State University Digital Repository. For more information, please contact [email protected]. INFORMATION TO USERS This reproduction was made from a copy of a document sent to us for microfilming. 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UNDERDEVELOPED IN A CAPITAL-RICH ECONOMY Iowa State University PH.D. 1983 University Microfilms Int6rn&tionâl 300 N. zeeb Road, Ann Arbor, Ml 48106 PLEASE NOTE: In all cases this material has been filmed in the best possible way from the available copy. Problems encountered with this document have been identified herewith a checl^ mark V . 1. Glossy photographs or pages 2. Colored illustrations, paper or print 3. Photographs with dark background 4. Illustrations are poor copy 5. Pages with black marks, not original copy 6. Print shows through as there is text on both sides of page 7. Indistinct, broken or small print on several pages 8. Print exceeds margin requirements 9. Tightly bound copy with print lost in spine 10. Computer prirvtout pages with indistinct print 11. Page(s) lacking when material received, and not available from school or author. 12. Page(s) seem to be missing in numbering only as text follows. 13. Two pages numbered . Text follows. 14. Curling and wrinkled pages 15. Other University Microfilms International f" Underdevelopment in a capital-rich economy by Ahmed H. Senani A Dissertation Submitted to the Graduate Faculty in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Department: Sociology and Anthropology Major; Sociology Approved; Members of the Committee; Signature was redacted for privacy. Signature was redacted for privacy. charge of Major Work Signature was redacted for privacy. For the Major Signature was redacted for privacy. For the Iowa State University Ames, Iowa 1983 ii TABLE OF CONTENTS Page I. INTRODUCTION 1 A. Brief Statement of Problem 1 B. History of Saudi Arabia 5 1. Mode of production and social formation 6 2. Political superstructure 14 II. THEORIES OF DEVELOPMENT 20 A. Evolution to Social Differentiation 20 B. Social-Psychological Theories of Development 28 C. Theories of Dependency School 35 III. DESCRIPTION AND EXPLANATION OF AMIN'S THEORY 45 A. Social Formation and Mode of Production 49 1. Social formation 50 2. Social classes 51 3. Center and periphery 51 B. The Extraversion of the Periphery 57 1. Disarticulation 58 2. Marginalization 59 3. Dependency 60 C. Sectoral Unevenness in Productivity 61 1. Unequal exchange 62 D. A New Form of Monopoly (Postimperialism) 66 E. Critique of Samir Amin 68 1. Ideology 69 2. Methodology 69 3. Logic 72 4. Theory 74 5. Empirical findings 75 6. Other criticisms ' 76 iii Page P. Short Biography of Samir Amin 77 IV. TESTING CORRESPONDENCE OF PROPOSITIONS AND AVAILABLE EMPIRICAL/HISTORICAL DATA TO SAUDI ARABIA 78 A. Extraverted Economic Structure 80 1. Balance of payments 89 2. Trade partners 97 B. The Structure of the Model of Development and the Organization of the Productive Processes 103 1. Uneven productivity among sectors 103 2. Uneven regional development 107 3. Distortion toward unproductive activities 112 4. The sectoral distribution of output in Saudi Arabia 115 5. The sectoral distribution of employ­ ment 120 6. The hypertrophy of administrative activities 131 7. Disarticulation within the national economy 131 8. Social inequality 136 9. Urban, rural, and Bedouin income distribution 137 C. Regional Distribution of Income 139 1. Income distribution within urban population 141 2. Conclusion 142 D. Distribution of Income in Largest City 142 1. Contemporary social formation 147 V. IMPLICATION FOR THE THEORY AND DEVELOPMENT POLICY 151 VI. CONCLUSION AND RECOMMENDATIONS 158 A. Recommendations 162 iv Page 1. Balanced development 169 2. Basic needs 170 3. Appropriate technology 171 VII. BIBLIOGRAPHY 172 VIII. ACKNOWLEDGMENTS 185 V LIST OF TABLES Page Table 1. Government revenue, 1902-47 (Philby, 1955) 17 Table 2. Export and import/GDP, 1960-81; ratio of export and import to GDP 81 Table 3. Export and import proportion of GDP in Kuwait 82 Table 4. Ratio of export and import to GDP in UAE 82 Table 5. Ratio of export and import to GDP in Egypt and Colombia 82 Table 6. Gross domestic product uses, 1975, 1979, 1980, 1981 83 Table 7. Proportion of U.S. and Japan export and import to total GDP 84 Table 8. Share of immigrant labor by economic sec­ tors, 1975 85 Table 9. Proportion of export to GDP 86 Table 10. Proportion of export to GDP in U.S. and Japan 87 Table 11. Oil export as a percentage of total export 87 Table 12. Balance of payments estimates, 1963-79 (SR million) 91 Table 13. Proportion of crude oil to total oil exported 96 Table 14. The share of oil revenue to total income of the state 96 Table 15. Government revenues from oil (1946-1980) in millions of U.S. dollars 97 Table 16., Saudi Arabia export direction, percent 98 Table 17. Geographical origin of imports (% share of country/region) 99 vi Page Table 18. The composition of Saudi Arabian imports in 1978 101 Table 19. Share of imports in production and con­ sumption 102 Table 20. Percent share in GDP (current prices) 105 Table 21. Employment in agriculture and oil sector (in thousands) 105 Table 22. Distribution of total population (per­ cent) 109 Table 23. Increased populations in principal towns (estimate) 110 Table 24. Sectoral distribution (constant prices) excluding oil sector (% of GDP) 116 Table 25. Saudi Arabia's Gross Domestic Product by economic activities in constant prices from 1965-1980 117 Table 26. Percent share of production and service activities in GDP 119 Table 27. Percent of sectoral distribution of GDP 120 Table 28. Employment structure by aggregated sec­ tors, 1962-1985 (percentage of total employment) 122 Table 29. Percent of productive employment to total employment 124 Table 30. Comparison between the white-collar em­ ployees and the wage laborers in the turnover 129 Table 31. Government share of employment (in thousands) 132 Table 32. Oil production and export (million barrels) 135 Table 33. Estimated energy utilization by sectors, 1979 135 vii Page Table 34. Annual average income of nomads, rural and urban population in Saudi Arabian riyals 137 Table 35. Percent of urban, rural and nomad popula­ tion receiving the higher and lower income 138 Table 36. Distribution of income according to city size 139 Table 37. Regional income distribution (in Saudi Arabian riyals) 140 Table 38. Regional income distribution as a per­ centage of lower and higher groups within each region 140 Table 39. Kinds of cities and migrants origin 141 Table 40. Income and residents distribution 146 Table 41. Income distribution by the lowest 20 and highest 5 percent in some industrialized countries, 1960, 1976 147 viii LIST OF FIGURES Page Figure 1. Map of the Kingdom of Saudi Arabia 9 Figure 2. Wage workers and white-collar employees who left the service during the years 1977-1980 130 Figure 3. Income distribution according to number of residents (percent) 145 1 I. INTRODUCTION A. Brief Statement of Problem When ..sociologists became interested in the field of de­ velopment and economic change after the Second World War, they tried to contribute to solving the problem of why some countries are developed and some are not.