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Saudi Arabia
AGRICULTURE
During the 1970s and 1980s, the government undertook a massive
restructuring of the agricultural sector. The stated objectives
were food security through self-sufficiency and improvement of
rural incomes. Although successful in raising domestic output
of several important crops and foodstuffs through the introduction
of modern agricultural techniques, the agricultural development
program has not entirely met these objectives. In regard to self-
sufficiency, the kingdom produced a sufficient surplus to export
limited quantities of food. However, if the entire production
process were considered, the import of fertilizers, equipment,
and labor have made the kingdom even more dependent on foreign
inputs to bring food to the average Saudi household.
Two patterns of income distribution emerged: traditional agricultural
regions did not benefit from the development program, and the
government's financial support led to the establishment of large-scale
agricultural production units. Some of these were managed and
operated by foreign entities and owned by wealthy individuals
and large businesses. From an environmental viewpoint, the program
had a less than satisfactory impact. Not only has it caused a
serious drain on the kingdom's water resources, drawing mainly
from nonrenewable aquifers, but it has also required the use of
massive amounts of chemical fertilizers to boost yields. In 1992
Saudi agricultural strategy was only sustainable as long as the
government maintained a high level of direct and indirect subsidies,
a drain on its budget and external accounts.
Data as of December 1992
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