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1、Chapter2ReformsandEconomicPlanningSomanyworlds,somuchtodo,solittledone,suchthingstobe.TennysonDifficultDecisionsBeingTakenInthespaceofafewyearssincethefirsteditionofthisbookin2005,theKingdomhaswitnessedsomefundamentalchangeshavingtakenplace,whichfewwouldhav
2、epredictedtohappensosoon.TheentryofSaudiArabiatotheWorldTradeOrganizationin2005wasprobablyonecatalysttospeedupdomesticeconomicandadministrativereforms,butthemomentumforchangewasalreadyinthemak-ing,primarilydrivenbyKingAbdullahbinAbdulaziz.Uponsucceedingto
3、thethroneinAugust2005followingthedeathofKingFahd,theCustodianoftheTwoHolyMosques(theKing’sofficialtitle),KingAbdullahembarkedonaseriesofdomesticreforms,theoutcomeofwhicharenotyetfullycertainbutwhichwilldeterminethedirectionandpaceofSaudieconomicdevelopment
4、overthenextfewdecades.TheoutcomeisnotimportantjustforSaudiArabiabutalsoforthewiderworldgiventheKingdom’sstrategicgeopoliticalimportanceintheworldanditsenhancedroleinsuchbodiesastheG20blocandmultilateralorganizationsliketheInternationalMonetaryFundandtheWo
5、rldBank.SaudiArabiacontinuestoplayasignificantroleinenergymatters,possessingaroundaquarteroftheworld’sprovenoilreserves.EconomicDiversificationRemainsCriticalReducingdependencyonoilrevenues,however,remainsakeygovernmentpriority.ThischallengeexistsforSaudiAr
6、abia,whichunderaplannedcapacityoutputandproductionlevelof12.5mpbd,couldtheoreticallyceasetoexportinthenext50–60yearsifglobalconsumptioncontinuestogrowonalinearpath.Thesolutionseemsclearenough:todevelopaneconomycharacterizedbygrowingdiversificationofproduct
7、ionandincome,evolveinter-sectorallinkagesandexpandregionalandM.A.Ramady,TheSaudiArabianEconomy,DOI10.1007/978-1-4419-5987-4_2,15CSpringerScience+BusinessMedia,LLC2010162ReformsandEconomicPlanningglobaleconomicintegration.Domestically,theSaudigovernmentwi
8、llcontinuetoemphasizeitscoredevelopmentgoalsofraisingthestandardoflivingofitsciti-zens,improvingthequalityoftheirlivesandenhancingtheirtechnicalcapabilities.Thehistoricalpatternofdevelopmentplanallocationsreflectsthe
