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Managing economic crises: The role of the state in Bahrain and Kuwait
Authors:Fred H Lawson
Abstract:Bahrain and Kuwait adopted sharply divergent responses to the economic crisis in the Gulf during the 1980s. The Bahraini government reduced the level of state intervention in the local economy, opened up opportunities for private investment and relied on the operation of the unregulated market; Kuwait's government, on the other hand, imposed a greater degree of state supervision over domestic economic affairs and expanded central planning to allocate resources to the most profitable enterprises. Two influential bodies of neo-Marxist writing on the state—the state-derivation school and the writings of Claus Offe—have difficulty accounting for these differences. A more adequate explanation for Bahraini and Kuwaiti policy can be formulated in terms of the strength of each country's indigenous rich merchant community relative to that of the ruling family/central administration and the political activities of the labor movement in each amirate. Fred H. Lawson is associate professor, Department of Government, Mills College, Oakland, CA 94613. He received his Ph.D. from UCLA in 1982 and has also taught at the University of North Carolina and Smith College. His most recent publications include “Political-economic trends in Ba'thi Syria: a reinterpretation,”Orient 29 (December 1988) and “Libéralisation économique en Syrie et Irak,”Maghred/Machrek 128 (April–May 1990). He is currently exploring the connection between class conflict and foreign policy in contemporary Syria and Iraq.
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