العوائد النفطية و المديونية العربية (1973-1986)‎

Abstract EN

The main contemt of this paper is to study analytically the relationship between the outflow of the petrodollars from the rich Arab oil exporting countries (surplus economies) and the increase in external indebtedness of some Arab countries (deficit economies).

The paper analyzes the financial relations between the Arab countries and the western econmies within the theoretical framework of dependency theories.

This discussion distinguishes between the economic conditions of the rich oil exporting Arab economies and the indebted Arab countries.

The paper is divided into three parts: -The first part deals with the investment of petrodollars in the western economies.

- The Second part discusses the financial dependency of Arab countries through their growing reliance on external debt.

In this respect a short discussion of the financial development assistance flows from the rich Arab oil exporting countries to the indebted Arab countries was also introduced.

- The third and last part of the study illustrates the economic conditions of both the rich Arab oil exporting economies and the indebted Arab countries after the decline in the oil prices in the first half of the eighties.

Main findings of the study can be summarized, as follows : 1.

A significant increase in the petrodollars surpluses after 1973 and a sharp decrease in the surpluses after 1981 with the decline in oil prices.

2.

Meanwhile, the world economy withessed a remarkable recycling of petrodollars to the financial markets in western economies.

This process was Justi- ied by many factors, such as, relatively poor trade relations between the Arab countries, the efficiency of the western financial markets if compared with the capital markets in Arab economies and the role of the foreign banks and the finance sector in the Arab countries in transfering the profits and deposits to the western economies.

3.

The recycling of petrodollars was found to be associated with the development of the Eurodollar market.

In general, the financial markets in USA, UK and the other western industrialized economics absorbed the largest portion of short and long term Arab investment.

Arab investment abroad was estimated by $ 400 billion in 1987.

4.

It is important to note that the petrodollars and the Arab deposits abroad were the main source for the increase in liquidity in the money markets and the different banks in western Europe and USA.

This means that the indebted Arab countries obtained some Arab capital by borrowing from the western banks, as well as the international financial organizations.

Meanwhile petrodollars were used to assist some Western economies and many developing countries.

5.

Thus, all debt indicators reveal a significant increase in the foreign debt of many Arab countries over the seventies.

Main indebted countries are Egypt, Algeria, Morocco, Syria, Jordan, Sudan, Somalia, Mauritania, Djibouti and Yemen with significant differences in their creditworthiness and general economic conditions.

6.

Analyzing the economic conditions of Arab surplus countries and indebted countries after the decline in the oil prices in 1981, it was found that the indebted countries entered the debt trap and could not use their credits in sustaining economic development in the productive sectors.

This led to other forms of dependency on the western countries such as food dependency, technological dependency, trade dependency and military dependency.

Moreover, even the oil surplus countries could not achieve an independent economic development.

They are found in complete financial dependency with the western economies, suffering from the business cycle fluctuations in the western economies.

The main conclusion is that inspite of large financial resources over the seventies, neither oil surplus countries nor indebted countries could achieve a sustained economic development.

However, in the eighties both groups of countries suffered from a relatively tight financial situation.

7.

Proposed solution can be classified into two groups, partial solutions and general recommendations.

Partial solutions concern the financial situation of the Arab countries and recommend the promotion of an Arab Bank for economic development, the establishment of an Arab dollar market and a united Arab currency.

However all these solutions are partial if they are not integrated under the general umbrella of economic development strategy.

This strategy must encourage real development efforts in the productive sectors in the Arab countries and enhance the absorption of Arab capital in the Arab financial markets.