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WEEKLY NEWSLETTER
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Saudi Arabia
Index
During the 1970s and 1980s, the government undertook a
massive restructuring of the agricultural sector. The stated
objectives were food security through self-sufficiency and
improvement of rural incomes. Although successful in raising
domestic output of several important crops and foodstuffs through
the introduction of modern agricultural techniques, the
agricultural development program has not entirely met these
objectives. In regard to self- sufficiency, the kingdom produced
a sufficient surplus to export limited quantities of food.
However, if the entire production process were considered, the
import of fertilizers, equipment, and labor have made the kingdom
even more dependent on foreign inputs to bring food to the
average Saudi household.
Two patterns of income distribution emerged: traditional
agricultural regions did not benefit from the development
program, and the government's financial support led to the
establishment of large-scale agricultural production units. Some
of these were managed and operated by foreign entities and owned
by wealthy individuals and large businesses. From an
environmental viewpoint, the program had a less than satisfactory
impact. Not only has it caused a serious drain on the kingdom's
water resources, drawing mainly from nonrenewable aquifers, but
it has also required the use of massive amounts of chemical
fertilizers to boost yields. In 1992 Saudi agricultural strategy
was only sustainable as long as the government maintained a high
level of direct and indirect subsidies, a drain on its budget and
external accounts.
Data as of December 1992
During the 1970s and 1980s, the government undertook a
massive restructuring of the agricultural sector. The stated
objectives were food security through self-sufficiency and
improvement of rural incomes. Although successful in raising
domestic output of several important crops and foodstuffs through
the introduction of modern agricultural techniques, the
agricultural development program has not entirely met these
objectives. In regard to self- sufficiency, the kingdom produced
a sufficient surplus to export limited quantities of food.
However, if the entire production process were considered, the
import of fertilizers, equipment, and labor have made the kingdom
even more dependent on foreign inputs to bring food to the
average Saudi household.
Two patterns of income distribution emerged: traditional
agricultural regions did not benefit from the development
program, and the government's financial support led to the
establishment of large-scale agricultural production units. Some
of these were managed and operated by foreign entities and owned
by wealthy individuals and large businesses. From an
environmental viewpoint, the program had a less than satisfactory
impact. Not only has it caused a serious drain on the kingdom's
water resources, drawing mainly from nonrenewable aquifers, but
it has also required the use of massive amounts of chemical
fertilizers to boost yields. In 1992 Saudi agricultural strategy
was only sustainable as long as the government maintained a high
level of direct and indirect subsidies, a drain on its budget and
external accounts.
Data as of December 1992
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