ABSTRACT
This chapter concerns the oil price rise and the countries which enforced it. Kuwait decided to cut oil production in order to put pressure on the West to persuade Israel to withdraw from the former Arab territories it occupied. The Middle-Eastern producer with the best hope of using its oil revenues domestically is Iran. Oil accounts for about nine tenths of Iran's export revenue. Indonesia, with one of the biggest populations in the world, will have no difficulty at all in spending its oil revenues. Most of its oil is sold to Japan, with some to Australia; but while oil is Indonesia's biggest source of foreign exchange, it also has rubber, timber and immense reserves of minerals. Although Indonesia is still one of the world's poorest countries, it is widely believed in the West that it will be the home of the next economic miracle.
