IRAN AND DUBAI LEAD THE WAY115take a new approach. My survey data suggests two lessons: First, gov-
ernments need to find ways to float proposals for public discussion. Citi-
zens are more likely to get behind painful policy if it’s explained and
makes sense. Gulf citizens understand how important natural resources
are to their well- being. When people are told that higher prices can
increase oil and gas exports, many accept the need for personal sacri-
fice. Second, policy makers are probably being too cautious. They may
have more scope than they believe for raising prices. If ruling elites level
with their people, like Iran did ahead of its monumental subsidy reform,
they might find citizens will accept hardship if it is distributed fairly.
In Saudi Arabia, rulers seem to have internalized these lessons; there,
a long era of caution in energy policy was coming to an end.