Saudi Arabia Unrest: The Advantage Of Bribes

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By Douglas A. McIntyre Updated Published
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Muammar Muhammad al-Gaddafi might have been better off to use the billions of dollars he has hidden around Libya to bribe his opposition than to wage war on his countrymen. He does use the money for bribes of a sort to keep his army from turning against him and to pay for mercenaries from other nations to join his armed forces.

How rulers in the Middle East and north Africa use their huge wealth is, of course, their decisions. The Saudi royal family he begun to spread $36 billion among the country’s people to support higher standards of living, home building, and debt forgiveness. It is possible that some of the cash will make it into the hands of  opposition members who prefer the good life over the life of revolutionaries. The $36 billion bribe of sorts will test the ability of what is likely to be a shrinking group of insurgents to take down the Saudi regime. Money talks and probably speaks even louder among the poor who need it desperately. It is an open question if the cash will actually make it to these people in a system that is prone to corruption. The royal family has every reason to make certain that those it was intended for actually receive it.

There are critical differences between the Saudi royal family and Gaddafi. It has been pointed out repeatedly that he may face an international tribunal because of his killing of Libyan citizens. So far the Saudi princes do not need to be concerned about similar prosecution. They may surrender that position if they quell uprisings with guns and tanks.

Saudi Arabia’s rulers might even decide to take their money and move to countries with less arid climates.

The battles over who will run nations in which a vote for government means nothing is likely to spread. The movement may not make it far if the Saudis can build a firewall. If they cannot, unrest may happen as far away as China. Although the repressive central government there has decades of experience dealing with dissidents. China decided long ago that censorship of the Internet and monitoring of wireless traffic are a good means to keep unrest from spreading.

The Saudis have probably picked a better course than Gaddafi as a means to stay in power. Money solves a multitude of problems that guns and war planes do not.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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