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THE KINGDOM of Saudi Arabia (KSA) was created in 1932 from a region that had historically been the home of the spiritual and temporal rulers of Arabia and many of the holiest places in Islam. The traditional form of rule in KSA has been autocracy, with the appointed leader taking counsel from a variable group of elders and advisers, many of whom are drawn from the leader's family. Decisions and policies have been left deliberately opaque. This method extends not just to the government service but also to the private sector, in which many decisions are made on the basis of mutual connections or of family trust and, hence, not subject to wider scrutiny. This has led to many opportunities for corruption and white-collar crime.

Above Suspicion

In common with other parts of the Middle East, many members of the ruling family consider themselves and the positions they occupy in society to be above suspicion. Each of the approximately 5,000 princes, for example, receives a royal pension and expects various privileges.

The unwillingness of the elite to be held accountable for business decisions means that bankruptcies and other failures are rarely disclosed, and so creditors and foreign workers are frequently left without compensation in such cases. This is exacerbated by the refusal of the KSA government to permit dealings with any business that also has dealings with Israel. This policy contravenes international trade law, which requires impartiality of treatment and, consequently, the KSA has not been bound to international conventions. Opposition to organized labor in the country has further meant that international labor standards cannot be enforced or even effectively monitored by the International Labor Organization (ILO). There are many reports of the abuse of domestic migrant workers and other service sector workers.

The KSA has operated under a strong policy of religious leadership in the Muslim world and this has manifested itself in the funding of various religious organizations. This funding is related to the Muslim practice of charitable giving, yet it supports the extreme form of Islamic thought, Wahhabism, which has led to tensions with Western countries. The West is considered by Wahhabite thinkers to maintain decadent and corrupt societies. Indeed, many people believe that it is their duty to combat such decadence and that they should be supported by their country and its institutions.

With the current monarch, King Fahd, and his family identified strongly with the West, particularly because of the decision to permit the stationing of U.S. troops in the KSA as part of the 1991 Gulf War against Iraq, extremist Islamic movements have gained strength and support. This has been manifested in terrorist attacks against Western interests by religious groups, some of which may have been supported through charitable giving. The alarming decline of the Saudi economy and the difficulties faced by educated Saudis in finding jobs they believe suitable has intensified tensions. Calls for reform of the corruption practiced by the elite have become more noticeable, and the state is reluctant to act too openly against religious dissent for fear of sparking a major uprising.

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