Jim_Krane]_Energy_Kingdoms__Oil_and_Political_Sur

(John Hannent) #1
128SHIFTING GEARS IN SAUDI ARABIA

result of economic mismanagement. One common refrain was that
poor Saudis were being forced to pay more to underwrite the billions
of riyals spent on questionable weapons purchases, ill- conceived wars
in Syria and Yemen, and aid for Egypt’s military. Government corrup-
tion and royal family privilege was another thread. “When oil went up
to $120 a barrel, what did the general population gain? How can we
justify increasing the cost burden on the public today?” one disgrun-
tled Saudi tweeted. “Whoever fails to manage these affairs properly
should resign.”^28
Others supported the reform on the basis that the prior distribution
of subsidies was an even bigger injustice. Reforms disproportionately
targeted the rich. “Imagine if the government decided to give a billion
riyals to citizens, but 80 percent of this billion goes to the richest 40 per-
cent of the population and the remaining 20 percent share goes to the
poorer majority. Right now that is exactly what is happening under the
current subsidy system,” the commentator Essam al- Zamel argued in a
YouTube video that preceded the reform. Al- Zamel maintained that gov-
ernment outlays for energy subsidies were more than double those
aimed at poverty reduction. “We are taking from the poor to give to the
rich. The optimal situation is that everybody pays the real price and you
target the poor with cash.”^29 Despite al- Zamel’s backing for the reform,
he was one of several prominent commentators swept up in mass arrests
in September 2017. Muhammad bin Salman’s consolidation of his power
base included a crackdown on preachers, scholars, intellectuals, and
activist Saudis, many of whom were jailed for speaking out against
changes in government policies or in favor of political reforms or oppo-
sition groups.^30
Intensified repression probably helped dissuade Saudis from taking
to the streets. But other factors also calmed the masses. When the poor
were hit with higher rates in 2018, they received cash compensation.
Further, new water and power rates were skewed toward commercial
rather than residential customers. Finally, Saudi officials had wisely
publicized the wasted resources.^31 By the time the subsidy cuts came,
at least some members of the public understood that their loss in ben-
efits was in the national interest.

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