ABSTRACT

The large-scale expenditures ran counter to the general trend of curbing outlays, cutting subsidies, and minimizing deficits. The conventional answer to such an obvious discrepancy was growing military threat posed by Iran. The Saudi goal was made even more elusive by failure to enforce the implementation of Security Council Resolution 598, which called for a cease-fire, and the abortive attempts to impose an arms embargo on Iran. The Saudis urged other Opec members "to cooperate with us in order to stabilize the market," and even warned that they might use their muscle to reimpose order within group. Economic recession continued throughout 1987, though there were intervals when it appeared that the economy might have begun to stabilize. The problem of drug smuggling became a prominent issue in the public life of Saudi Arabia in 1987. The government formed 35 units which were stationed in the main cities and at border checkpoints in order to combat drug smuggling and pushing.