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By Cyrus Bina (auth.)

ISBN-10: 1137106972

ISBN-13: 9781137106971

ISBN-10: 1349296716

ISBN-13: 9781349296712

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Additional info for A Prelude to the Foundation of Political Economy: Oil, War, and Global Polity

Sample text

After the replacement of the early oil concessions by the new method of 50–50 profit sharing, the “posted price” was used to determine the share of the oil revenues due to the oil-exporting governments. Historically, this represented a further step in the development of modern oil rent in the Middle Eastern oil industry. Although the “posted price” does not function as a price in an ordinary sense, it nevertheless has been constituted as a variable basis for the determination of oil rents since the transition from the era of early concessions.

It is believed that the sudden increase in the price of crude oil in 1973–74 was the result of the coordinated efforts of the US government, the major oil companies, and the most accommodating members of OPEC, to increase the price of crude oil (Anderson and Whitten 1977, Greider and Smith 1977). Although the United States became a net importer, it is said, the burden of the price hike fell more heavily on Japan and Europe, where almost all the oil consumed was imported (Tsurumi 1975). Another feature of the conspiracy theory is the amount of discretion that it assigns to price determination in oil.

Some authors added that the atmosphere of the post-Vietnam era created a general political condition that permitted the dominated countries of the Third World, notably OPEC, to launch this “offensive” (Girvan 1975: 147). Wor l d O i l a n d t h e C r i s i s of G l ob a l i z a t ion 23 The most fundamental error of these theorists is eclecticism, that is, putting the questions of politics, economics, geography, international relations, and epoch on an equal footing without seeking to determine their structural relationship and without any specificity as to the underlying cause(s) of the oil crisis.

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A Prelude to the Foundation of Political Economy: Oil, War, and Global Polity by Cyrus Bina (auth.)

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