• Abstract and Figures
• Public Full-text

Iowa State University Capstones, Theses and Retrospective Theses and Dissertations Dissertations 1971 Policies and models for planning the economic development of the non-oil sector in Saudi Arabia Ahmad Kamal Katanani Iowa State University Follow this and additional works at: https://lib.dr.iastate.edu/rtd Part of the Agricultural and Resource Economics Commons, and the Agricultural Economics Commons Recommended Citation Katanani, Ahmad Kamal, "Policies and models for planning the economic development of the non-oil sector in Saudi Arabia " (1971). Retrospective Theses and Dissertations. 4551. https://lib.dr.iastate.edu/rtd/4551 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]. 72-12,562 KATMANI, Ahmad Kamal, 1939- POLICIES AND MODELS FOR PLANNING THE ECONOMIC DEVELOPMENT OF .ffi NON-OIL SECTOR IN SAUDI ARABIA. Iowa State University, Ph.D., 1971 Economics, agricultural I University Microfilms, A XERDK Company, Ann Arbor. Michigan I THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED Policies and models for planning the economic development of the non-oil sector in Saudi Arabia by Ahmad Kamal Katanani A Dissertation Submitted to the Graduate Faculty in Partial Fulfillment of The Requirements for the Degree of DOCTOR OF PHILOSOPHY Major Subject: Economics Approved: Signature was redacted for privacy. In Charge of Major Work Signature was redacted for privacy. For the Major Department Signature was redacted for privacy. For the Graduate College Towa State University Ames, Iowa 1971 PLEASE NOTE: Some pages have indistinct print. Filmed as received. UNIVERSITY MICROFILMS, ii TABLE OF CONTENTS Page CHAPTER I. INTRODUCTION 1 General Problems of Economic Development 1 Objectives of the Study 3 Sources of Data 5 Organization of the Remainder of the Study 5 CHAPTER II. SOCIO-ECONOMIC BACKGROUND 8 Social Background 8 Economic Background 10 Oil sector 14 Non-oil sectors 18 Industrial sector 19 Trade sector 20 Transportation and communication 23 Agricultural sector 25 CHAPTER III. STRUCTURE AND NATURE OF AGRICULTURAL SECTOR 26 Agricultural Resources 29 Land resources 29 Water resources 31 Human resources in agriculture 33 Bedouins and nomads 35 Land use 36 AO iii Page Agricultural services and institutions 42 Marketing and transportation 42 Agricultural credit 43 Agricultural education and extension 44 CHAPTER IV. GOALS AND NEEDS IN AGRICULTURAL DEVELOPMENT AND OBSTACLES AND CONDITIONS TO BE OVERCOME 47 Goals of Agricultural Development Plan 47 Problems of Agricultural Development 50 Natural resources 51 Human resources 52 Capital 54 Technology 55 Other problems 56 CHAPTER V. PROJECTS, STUDIES AND PLANS 59 Water and Agricultural Projects 60 Al-Hassa Irrigation and Drainage Project 60 Faisal Settlement Project 61 Wadi Jizan Development Project 63 Previous Studies and Surveys 64 Area resource surveys 65 Summary of the Proposed Five-Year Plan for Agricultural Development 69 State of agriculture before the plan 72 O• « 1 w ## J J ^ mm J mm ^ J A A ^ ^ iv Page Demand projections 74 Supply projections 79 Targets and priorities 87 Grains 87 Forage 87 Vegetables 88 Livestock 88 Poultry 88 Other products 88 Priorities 89 Wheat, vegetables, fodder 89 Other programs 93 Services and policies 94 Credit 94 Ministry departments 94 Subsidies 94 Policy emphasis 96 Financing of the plan 97 CHAPTER VI. SYNTHESIS OF POLICIES FOR THE ECONOMIC DEVELOPMENT OF AGRICULTURE 99 Inputs of Production 102 Human resources 102 Natural resources 108 Land resources 108 Water resources 110 V Page Range resources 112 Capital 116 Technology 119 Prices and Subsidies 122 Prices 122 Subsidies 124 Institutions 128 Land tenure institutions 129 Factor and product market institutions 132 Credit institutions 135 CHAPTER VII. TOWARDS AN INTERREGIONAL LINEAR PROGRAMMING MODEL FOR PLANNING THE ECONOMIC DEVELOPMENT OF AGRICULTURE 139 Linear Programming 140 General assumptions of linear programming 141 Relevance of interregional models to planning agricultural development in Saudi Arabia 142 Assumptions 145 Notations used 146 Mathematical form 150 Theoretical solution of the model 154 Delineation of producing areas and consuming regions 156 DuLa requirements for model application 160 Modification of the Model and Policy Implications 165 T-nf-owo*» artA Pls»r*n*lr»o r»f T.rvr»al"nr>n 1.70 Some Limitations of Interregional Models 174 vi Page CHAPTER VIII. SUMMARY 176 BIBLIOGRAPHY 180 ACKNOWLEDGMENTS 185 APPENDIX 186 Definitions and Abbreviations Used 186 Conversion from Higra Years to Gregorian Years 1 CHAPTER I. INTRODUCTION General Problems of Economic Development Economic development has occupied a focal point in the world since the late 1940s. The strife of the less-developed countries for develop­ ment and the willingness of the more-developed to lend a hand have almost rendered all countries and the organ that unites them, the United Nations, to be involved in this complex process. It is a complex process because it not only implies an increase in output, but also involves a change in economic and other institutions and the structure of inputs and outputs. The interrelationships and inter- dependencies that exist among the different institutions and structure make this unavoidably complicated. In their strife for development, the less-developed countries have been handicapped by many kinds of constraints. These constraints are represented by the inadequacy of resources in general. However, the back­ wardness and rigidity of institutions perhaps are the most limiting of these constraints. Economic development depends on the quality and quantity of natural resources and the extent of their availability, on the abundance of human resource, their skills and their organizational and administrative efficiency, on capital resources and technological know-how. Although the LDCs experience shortages of different resources to varying degrees, capital and management resources have been, by far, the most limiting factors. This complex perhaps, partly explains the in'/clventent 2 of more advanced countries and international agencies in trying to "fill the gap" by supplying needed capital and technical advice. The predominence of the agricultural sector in many LDCs over the industrial sector and the dependence of the larger part of population on primitive agriculture for income and living, have triggered the evolve- ment of many theories of economic development. These theories try either to describe reasons for under-development or prescribe paths to develop­ ment or both. As expected, these theories are by no means, in agreement. Some emphasize industrialization as the vehicle through which economic development can be achieved. Proponents of this view cite as evidence the high correlation between industrialization and per capita income and the relative decline of the agricultural sector in the latter stages of development. Others emphasize priority for agricultural development because the agricultural sector supports the larger share of population and supplies the rest of the economy with resources such as labor, savings and raw materials. They argue that unless the per capita income of agriculture increases through development, the overall increase in per capita income will be hampered. A third view places equal importance in developing the different sectors of the economy for the goals of the overall economic development to be attained. These issues are not yet resolved and the theory is by no means com­ plete. The uniqueness of situations in different LDCs and the varied experience of the more advanced countries is making it difficult to 3 Saudi Arabia has an economic setting quite unlike that of most other countries of the world. The Kingdom has a very advanced and commercial­ ized oil sector. This sector dominates the economy in generating more than half of the GNP, constituting about 99 percent of the total value of exports and earning most of the nation's foreign exchange. Co-exist­ ing with the advanced oil sector is a non-oil sector dominated by sub­ sistence agriculture and nomadic pasturalism. Half to three-quarters of the population derive their living directly from agriculture, and the sector employs more thau 46 percent of the labor force in the country. Even with a majority of h'jman resources in this sector, its contribution to the GNP in recent years has been less than 10 percent; only 7.7 percent in 1966/67. The low per capita Income in agriculture pulls down the average per capita for the country causing Saudi Arabia to rank in the lower level of development spectrum. Although development planning has been practiced by many of the LDCs early in the 1950s, Saudi Arabia has started serious planning efforts only in 1969/70. Concerned about the dependence of the country on oil and realizing that this is a wasting or stock resource the income of which is exogeneously determined, the government embarked on a number of projects and programs to develop the agricultural sector. The government has also prepared its first five-year plan (1969/70 to 1974/75) with major emphasis on the non-oil sector. Objectives of the Study This study has developed out of the interest of the author in the 4 Middle East. The problems encountered in Saudi Arabia are also met by other countries in the region. It is hoped that this study will enrich the knowledge of the author as well as contribute humbly toward solving some of the common problems of this area. The general objective of this study is to undertake a systematic analysis of the economic development of the non-oil sector in Saudi Arabia. More specifically it aims at; 1. Analyzing the economic performance of the non-oil sectors and evaluate their contribution to the national economy. 2. Exploring and identifying the obstacles handicapping the achievements of the goals of economic development. 3.

Load more

  199

Copy Link