ABSTRACT
After the end of the civil war, oil revenues rose steadily to constitute over 80 percent of total federal revenues and over 90 percent of export earnings by 1974. In 1974, following the oil price rise, oil revenue rose three and one-half fold, and the share of oil in revenues rose to over 80 percent. Political pressures arising from the taxation of personal incomes, farm incomes, or private property, which would check the increases in state expenditure demanded by politicians and bureaucrats, were absent. With the sharp increase in demand for foodstuffs triggered by the rise in incomes and the influx of migrants, supply lagged behind demand. 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. Industrialisation as a general goal remained very high on the policy agenda, as it had in the 1960s.
