Literature Review Examining the Impact of Oil Resources Availability Essay

Literature Review Examining the Impact of Oil Resources Availability on sparing Growth in An Oil-Based Economy with reference to Saudi-Arabian Arabia - Essay Examplethe case of Saudi Arabia, the availableness of rich oil resources has brought untold affluence to this tiny nation, however despite this, economic growth has been easy since the eighties and there has been increasing unemployment, with the unemployment rate among young Saudis estimated to be between 8 to 13 percent. The read/write head of how such a situation could have developed in a expanse rich in natural oil resources is examined below.The Petroleum Sector in Saudi Arabia comprises roughly 75% of budget revenues, 45% of its GDP and 90% of its export earnings (www.e.wikipedia.org). Saudi oil reserves are estimated to be the largest in the world about 260 billion barrels - and the country is the worlds largest exporter, with oil comprising 95% of the countrys exports and almost 75% of government revenues (www.en.wi kipedia.org). In view of the countrys heavy colony on oil, the Government has recently begun to encourage more development in the private sector, including in the king generation and telecom sectors. Saudi Arabia has also joined the WTO in 2005, in order to enhance its trading, convert its economy and attract a higher proportion of foreign investment. The Government has also been spending larger amounts on infrastructure development, job training and education.Oil was first discovered in Saudi Arabia in the 1930s, by U.S. geologists. Oil production in Saudi Arabia soared in the 60s and gave rise to a period of gruelling economic development which continued into the 1970s.(www.en.wikipedia.org). During the Seventies, there was an oil boom and the Gross Domestic Product per capita of Saudi Arabia soared, reaching a figure of 1,858%, however such growth was unsustainable and shrank to 58% in the eighties, although it has registered a 20% increase in the nineties.(www.earthtrends.w ri.org)Most of the oil in the country is produced on behalf of the Saudi Government by a single Company, Saudi ARAMCO. After the 1973 Arab Israeli war, there