ABSTRACT
The growth of agricultural output had slowed down before the onset of the oil boom. The oil boom did not bring stagnation or a decline of agricultural output. Large centralised oil revenues set the scene for an expansion of the public sector. A number of large-scale projects were started in the oil, mining, and manufacturing sectors, often under conditions of state monopoly. Industrialisation as a general goal remained very high on the policy agenda, as it had in the 196Os. The priorities of government industrial policy were growth and structural change in the direction of more intermediate and capital goods industries. In the states, the proliferation of parastatal bodies built on and extended the earlier regional pattern of state investment. The chapter focuses on the impact of oil on macroeconomic management, on overall economic strategy, on the productive sectors of the economy, and on acquisition of wealth and local patterns of capital accumulation.
