Middle East

Oil Corruption

Corruption is believed to be particularly widespread in the oil and construction industries, both of which are of considerable importance in the Middle East as oil wealth from reserves discovered in the 20th century led both to a demand by external powers to control the oil through either military force or commercial domination, as well as a burst of infrastructure building and more general expenditure by the newly rich owners.

[Page 533]The discovery of oil in some Middle East nations has led to a widening of the gap in economic opportunities between rich and poor, and the importance of the industry has meant that political considerations have underscored some commercial decisions. The importance placed upon defense and security in many states has also inspired a thriving armaments import trade that has necessitated additional secrecy on many occasions. In these conditions, in which few decisions and the reasons for making them are made public, in which most countries are undemocratic and in which a free press has struggled to establish itself, it is not surprising that there have been many opportunities for corruption and other forms of white-collar crime.

These include gun running and smuggling, prostitution and human trafficking, money laundering, support for and sponsorship of terrorism, fraud and embezzlement, and other activities. The division of labor according to ethnicity in many countries has meant that some groups are discriminated against and this has taken the form of lower wages and less desirable working conditions. In recent years, for example, Palestinians wishing to work in Israel have been subject to various regulations and difficulties, which have arisen as a result of the violence of the Intifada (uprising).

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