This article was originally published by IPI Global Observatory on 18 May 2017.
The low global oil prices being experienced since mid-2014 have had a serious impact on oil-dependent states across the world, many of which have a limited capacity to adjust to the current economic climate. Algeria is considered particularly vulnerable in North Africa, with fears of a return to the instability of the late 1980s and a diminished ability to respond to the region’s fragile security environment.
The steep decline in oil prices has caused budget deficits even in the wealthiest Gulf states, including Saudi Arabia. Yet these states generally have very large foreign currency reserves and sizable sovereign wealth funds that should help them weather the current slump comparatively well. Though not as poorly placed as some sub-Saharan oil-producers such as Nigeria, Algeria lacks such a significant cushion.
Old Gas Station. Image: Rob Brewer/Flickr
On 26 March 2015, the ISN hosted an Evening Talk on “The Politics of Oil in Today’s Middle East.” The featured speaker was Dr. Gawdat Bahgat, who is currently a Professor of National Security Affairs at the US National Defense University’s Near East South Asia (NESA) Center for Strategic Studies. The following video excerpts highlight the observations Dr. Bahgat made in his prepared remarks and in a follow-on question and answer (Q&A) session which was moderated by the ISN’s Peter Faber. » More
Tear gas used against protesters in Altamira, Caracas, 2014. Image: Andrés E. Azpúrua/Wikimedia
This article was originally published by Southern Pulse on 22 January 2015.
On 14 January 2014, Venezuelan President Nicolas Maduro promised the Petrocaribe alliance would continue and its twenty member countries would further consolidate into a “great economic zone.” President Maduro’s guarantee comes at a precarious time for his country, as a rapid and unexpected slump in global oil prices, coupled with persistent economic stagnation in Venezuela, have undercut his administration’s ability to maintain its social programs and address the country’s financial imbalances. » More