Premium
THE PERSIAN GULF, GLOBAL OIL RESOURCES, AND INTERNATIONAL SECURITY
Author(s) -
CHAPMAN DUANE,
KHANEHA
Publication year - 2006
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/byj035
Subject(s) - persian , economics , dilemma , political instability , politics , security dilemma , international security , middle east , international relations , international trade , economy , international economics , political science , law , philosophy , linguistics , epistemology
This article analyzes the interaction of politics and military security in global oil markets since the 1980s. The authors outline the historical evolution of the pricing structure that maintained a stable world oil market. They argue that the security framework underlying this pricing structure relied on a trade‐off between price stability and military security that has contributed to growing political instability in individual Persian Gulf countries and the rise of Al Qaeda and similar groups. The article concludes with a discussion of the pros and cons of three possible policy approaches to this dilemma—a “hands‐off” approach that is similar to the policy that prevailed between 1973 and 1990, a unilateral security system organized and led by the United States, and an international security framework. (JEL D47 , F02 , L11 , Q32 , Q41 , Q43 , Q48 )