Tariff and Exchange Rate Policies

  • Rodney Wilson


Although the Middle East as a whole maintains a large payments surplus with the rest of the world, there is a maze of controls over trade and currency contractions. It is ironic that controls are so widespread, while at the same time there is much debate about the capacity of the leading Middle East trading nations to absorb imports; and the issue of petro-currency recycling still figures prominently in the financial news. Even the richest oil-producing states, such as Kuwait, have general import licensing systems which apply to all goods apart from foodstuffs.1 Admittedly these licences are at present easy to obtain for most manufactured goods, but as Kuwait starts diversifying its economy and establishing new industry, the range of prohibited imports is becoming greater. Clearly, even where Middle Eastern countries have huge foreign exchange reserves, and large balance of payments surpluses, quotas and tariffs may still be adopted as a means of protecting infant industries. Indeed, in so far as the existence of payments surpluses enables countries to industrialise rapidly, those countries in the most favourable foreign exchange position may be the ones which introduce the greatest range of import restrictions during the next few years.


Saudi Arabia Foreign Exchange Middle East Domestic Currency Middle Eastern Country 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Chapter 4

  1. 2.
    For a general review of the issues involved see Bela Balassa, The Structure of Protection in Developing Countries ( Johns Hopkins Press, Baltimore, 1971 ).Google Scholar
  2. 3.
    Julian Bharier, Economic Development in Iran 1900–1970 (Oxford University Press, 1970) Chapter 6.Google Scholar
  3. 9.
    Rodney Wilson, ‘Big Importer’, The Financial Times Survey of Saudi Arabia, 12 January 1976, p. 20.Google Scholar
  4. 11.
    Rodney Wilson, Industrialization and Foreign Capital ( Focus Research Report on Egypt, London, 1974 ), pp. 15–22.Google Scholar
  5. 12.
    Rodney Wilson, ‘Revival of Canal Traffic is Key to Success’, The Times Supplement on Cairo, 7 October 1976, p. 27.Google Scholar
  6. 14.
    See the I.M.F., Annual Report on Exchange Restrictions (Washington, 1975), p. 219ff.Google Scholar
  7. 18.
    For a description of how bilateral arrangements work see P. T. Ellsworth and J. Clark Leith, The International Economy (Collier Macmillan, London, 1975), p. 380ff.Google Scholar
  8. 20.
    I.M.F., Annual Report on Exchange Restrictions (Washington, 1975), p. 220.Google Scholar
  9. 23.
    H. A. Merklein, ‘How Energy Relates to World Monetary Problems’, The Arab Economist June 1975, p. 42ff.Google Scholar
  10. 24.
    Ann Crossfield, ‘Importing Inflation’, The Financial Times Survey of the United Arab Emirates, 22 May 1975, p. 21.Google Scholar
  11. 28.
    Especially given Jordan’s ambitious development objectives. See Rodney Wilson, ‘Rapid Growth is Daunting Target’, The Times Supplement on Jordan, 25 May 1975, p. 2.Google Scholar

Copyright information

© Rodney Wilson 1977

Authors and Affiliations

  • Rodney Wilson

There are no affiliations available

Personalised recommendations