July/August 1995, pgs. 49-52
Oman: A Model For All Developing Nations
By Richard H. Curtiss
Twenty-five years ago when Sultan Qaboos bin Said Al-Said assumed
power in Oman it had three private schools enrolling a total of
900 students, all boys. Today it has more than 1,002 schools enrolling
481,100 students, of whom nearly half are girls. Literacy has climbed
from near zero to 41 percent, but is much higher among Omanis aged
30 and younger. Twenty-five years ago Oman's capital, Muscat, and
its adjacent port, Matrah, had a combined population of 20,000.
Today that population has soared to 549,150. Twenty-five years ago
Oman had 6 miles of paved roads. Today it has 22,800 miles of paved
roads, including multi-lane divided highways that make it possible
to drive in one day from Muscat to Salalah, the capital of the southern
province of Dhofar—an overland journey that would have required
two weeks by camel caravan a quarter century ago.
These seemingly impossible achievements, which have
propelled Oman from feudalism almost into the ranks of "developed"
nations in only a quarter of a century, are unparalleled in the
developing world. Yet they are verified by a World Bank report which
describes Oman as having "graduated" from the ranks of under-developed
nations needing World Bank loans.
This was the background for a conference held June
3-4, 1995 in the Omani capital of Muscat entitled "Vison for Oman's
Economy, Oman 2020." At the conference, sponsored by Sultan Qaboos
and presided over by Omani Deputy Prime Minister for Financial and
Economic Affairs Qais bin Abdul Munim Al-Zawawi and Omani Minister
of State for Development Affairs Mohammed bin Musa Al-Yousef, Omani
participants did not just dwell on their country's remarkable achievements
during the 25 years since Sultan Qaboos assumed power from his reclusive
and xenophobic father. Instead they discussed where they wanted
their country to be at the end of the next quarter century. They
also invited foreign participants to point out problems the country
would have to surmount to reach those goals by the year 2020 (see
boxes).
Oman's transition within one generation from one of
the most technologically and educationally deprived countries in
the world to a model of economic and social development is one of
history's most astonishing, and inspiring, feats. It has been facilitated,
of course, by revenues from Oman's inland oil fields, which went
into production in 1967. But Oman's petroleum is not nearly as abundant
as in neighboring Saudi Arabia and Iran, and it costs $5 to $6 a
barrel to extract and bring to the coast for marketing, compared
to $1 to $2 per barrel in Kuwait.
Because initial production was so low, Sultan Said
bin Taimur, Oman's ruler at the time, was unwilling to use the revenues
to begin developing the modern infrastructure his country so desperately
needed. When his son, Oman's present ruler, returned from a British
military education at Sandhurst and urged his father to open schools
to enable Omanis to start acquiring the skills needed to develop
their desperately backward country, the Sultan put him under house
arrest in Salalah, Oman's southernmost coastal city. From there,
reportedly with encouragement from the same British advisers who
had urged his father to send him to England for schooling at age
16 and then to Sandhurst, the son took over the government on July
23, 1970, while his father was visiting Salalah.
Most formidable of the problems facing the 29-year-old
ruler was illiteracy. For years almost the only Omanis who could
aspire to an education were those whose parents could afford to
send them to schools in the adjacent United Arab Emirates, to Oman's
former colony of Zanzibar where they could live with relatives,
or to relatively expensive boarding schools in Egypt or England.
By opening schools as rapidly as possible, starting with the first
grade all over the Sultanate, and staffing them with teachers from
other Arab countries as well as the rare Omani graduates from abroad,
Oman's new school system produced its first secondary school graduates
in the 1980s. In 1986, the country's large, modern Sultan Qaboos
university opened 40 kilometers from Muscat and Matrah, the twin
cities of the national capital area. Today, Omanis who have obtained
their entire education in Oman, including B.A. and B.S. degrees,
are doing graduate work at universities around the world or already
have taken their places as teachers, university professors and civil
servants in their modernizing country.
Other problems that had to be overcome immediately
were the absence of a health care system and of sanitary facilities
for water purification, food handling and waste disposal. Although
the rugged mountains and broad beaches of their country are spectacularly
beautiful, most Omanis lived in relative isolation within tiny date-producing
oasis hamlets accessible only by footpaths, or in fishing towns
and villages accessible only by boat along some 1,056 miles of Arabian
Sea and Arabian Gulf coastline.
Sultan Qaboos knew that to solve these problems his
country needed political stability. At the time he assumed office
Oman was in the throes of a civil war. Nearby countries like Jordan
and the Shah's Iran offered help to the Sultan against a rebellion
in his native Dhofar province which was being supplied and supported
from South Yemen, then under a hard-line Marxist government. Although
that war was contained in 1975, it was only 20 years later that
final Omani-Yemeni borders were agreed upon and demarcated at a
June 3, 1995 ceremony. Since Oman and Saudi Arabia also completed
demarcating all of their long border in the 1990s, two major potential
sources of instability have been removed permanently.
Although the 2.1 million residents of Oman, including
nearly half a million expatriate laborers, are scattered over 212,457
square kilometers (82,030 square miles), they are united by a strong
pride and the assurance developed over a history in which they never
have been conquered.
The Omani ports of Muscat and Sohar were briefly occupied
by Portuguese seafarers who first visited Oman in 1507, but the
Portuguese were expelled on Nov. 18, 1650, a day now commemorated
as Oman's national day. The Omanis then turned the tables, harassing
Portuguese-held ports in Asia and Africa.
The history of Oman begins with humanity's first written
records. The Sumerians, who lived in present-day southern Iraq and
invented the world's first writing system, recorded the receipt
of shipments of copper from the land of Magan, tentatively identified
by modern scholars as Oman. The ancient copper mining and smelting
works still can be seen near Sohar, where copper again is being
extracted.
The Sumerian records demonstrated that as early as
5,000 years ago Omani sailors had learned to use the monsoon winds
to link the inhabitants of the Tigris-Euphrates river valley to
two other contemporaneous civilizations in the Nile valley in Egypt
and the Indus valley in present-day Pakistan.
Three thousand years later, Roman writers complained
that too much of their empire's wealth was being expended on the
frankincense that originated in present-day Oman and was burned
on altars all over the ancient world. This incense, and the roses
grown in Oman's mountain valleys, still play a role in Omani culture,
where rose-water is shaken into the hands of visitors to Omani homes,
and the host wafts the aromatic smoke of burning frankincense into
the clothing of guests as they depart.
Sailors from the Hadramauti ports of Southern Oman
and Yemen reached as far as Guangzhou (Canton) in China in the seventh
century. Because Omanis embraced Islam in 630 A.D., during the lifetime
of the prophet Mohammad, more than 200 million Muslims now live
in Indonesia, Malaysia, Sarawak, Brunei and the southern Philippines,
marking the trading ports and, sometimes, ruling dynasties set up
by these voyagers. Among them was Sindbad the Sailor, many of whose
legendary voyages began from Omani ports. It was during this long
period that Oman developed its own colonial empire, occupying a
colony on the Makran coast of present-day Pakistan and Iran, and
another in the giant clove-growing island of Zanzibar (now part
of Tanzania) off the East African coast. For generations Baluchis
from the Makran coast and, more recently, the descendants of Omani
merchants in Zanzibar have been emigrating to Oman, particularly
in the past 25 years as Oman's increasing stability and prosperity
have contrasted sharply with deteriorating economies in its former
colonies.
The present Al Bu Said dynasty was founded in 1744
when Ahmed bin Said was elected imam. In 1795 he divided the titles
of imam and sultan between his two sons and in 1798 he signed the
first of the friendship treaties that have linked Oman and Britain
ever since. During this period Oman sent an emissary on an Omani
trading ship to Philadelphia in 1840 to establish diplomatic relations
with the United States.
Oman's empire broke up after the death of Sayyid bin
Sultan in 1856, when Britain settled a dispute between his sons
by giving Zanzibar to one and Oman to the other. Oman gradually
lost its other overseas possessions as well and, in 1915, rebellions
broke out in the interior. They were not settled until 1959, accelerating
the decline that ended only in 1970.
In 1975, Oman initiated the first of four five-year
plans that have depended to a large extent on the price and production
level of petroleum. At present, since Oman is finding new reserves
at almost the same rate that old ones are being depleted, the government's
goal is to maintain the present production level of 800,000 barrels
per day for the rest of this century.
The extraordinary building and beautification program
in Oman's capital and its suburbs was made possible largely by the
increase in the price of oil in the late 1970s. New ministries,
shopping malls and residential villas sparkle white in the sun in
an almost continuous strip from Bustan, east of Muscat, to Seeb,
the site of a brand new international airport more than 20 miles
to the west. At present, with the price of oil stagnant and delineated
in a sinking dollar, Oman has less money to spend on such beautification,
but it nevertheless has undertaken major regional expansion and
beautification in towns throughout the country.
Having accomplished most of its infrastructure-building
goals in its first quarter century, Oman's government will concentrate
in its upcoming five-year plan on "Omanization," inducing the private
sector as well as the government to find jobs for the growing annual
number of graduates from Oman's schools. It also is focusing on
environmental protection, on encouraging Omanis to save more of
their incomes and thereby reduce the need for foreign investment,
on freshwater conservation and production, and on dealing with its
extremely high birthrate through education.
Oman's petroleum is produced by private companies
and it plans to look to the private sector for some $6 to $8 billion
in investments needed for a liquified natural gas (LNG) program
to exploit and market its estimated 20 trillion cubic feet of natural
gas reserves. Oman already uses its gas for electric power generation
and most domestic heating and cooking, saving its precious petroleum
for marketing abroad.
Perhaps because of his Sandhurst education, which
included actual stints with British army units in England and in
Germany, during the early years of his reign Sultan Qaboos brought
in British advisers to turn his military forces into crack units
by Western standards. Although Oman's military now is a leader in
"Omanization," the rigorous training and discipline persists.
Oman has been foremost among the Gulf Cooperation
Council states in pushing for collective GCC defense measures. Oman
also has cooperated with U.S. military forces, both in providing
land-based support facilities for the U.S. Seventh Fleet when it
is in the area, and during the Gulf war when Oman joined all of
the other GCC members in making its ports and airfields available
as needed by the Coalition forces to liberate Kuwait.
The accompanying boxes provide Oman's vital statistics
and also facts that surfaced during its recent "Vision 2020" conference
to plan the next quarter century. In conjunction with its human
resources development, Oman is taking cautious measures toward liberalizing
its political structure, which remains that of an absolute monarchy.
As in neighboring Arab countries, the first step has been to establish
a Majlis al Shura, a consultative council enabling delegates
from the country's 59 wilayats (governates) to meet regularly
with the Sultan. In each wilaya three potential delegates
are selected by popular ballot. Of these, the Sultan nominates one
or two from each wilaya for service on the majlis. At
present, of the 80 members, two are women.
Sultan Qaboos, who unquestionably is one of the most
popular rulers in the Arab world, has enhanced his reputation with
annual tours of the country on which he is accompanied by his entire
cabinet. As the royal entourage sets up camp in varying parts of
the sultanate, direct complaints to the Sultan from local residents
are dealt with expeditiously by the responsible ministers.
When Sultan Qaboos acceded to the throne, there were
no newspapers or radio or television stations in the country. Edicts
from the Sultan had been posted by his military retainers on city
walls. Within a week of his accession to the throne, Sultan Qaboos
had opened in the national capital area his country's first, one-kilowatt
radio station. Now every part of Oman is reached by the multiple
transmitters of its national radio. Two television stations in Matrah
and Salalah share responsibilities for production of telecasts that
also reach virtually every corner of the country. In addition there
are five newspapers, three in Arabic and two in English, and the
Oman News Agency, which brings news in and transmits news out of
the Sultanate.
From Oman as well as from other absolute monarchies
in the Arabian peninsula and Gulf, reports began appearing in the
European press in 1994 of arrests of critics of the government.
Although little of this has appeared in the Omani media, Western
diplomats estimate that the Omani government detained about 500
such critics with points of view ranging from those of the Arab
nationalist Ba'th movement to Islamists supporting the Sunni Muslim
Arab Brotherhood.
While those detained did not constitute an organized
opposition, many disliked what they considered excessive Western
influence in the Sultanate. Most were questioned and released within
a few days, but some 30 were tried on various charges and one sentenced
to death--a sentence later commuted. Those serving sentences were
held in what one U.S. diplomat describes as "a model prison" near
the international airport at Seeb, a far cry from the dungeons that
existed in Oman prior to 1970.
The Sultanate, once sealed off almost completely from
the outside world, now is opening up in many ways. Tour groups have
been allowed to visit the country in growing numbers since 1987,
and the government has initiated a 10-year plan to bring tourism
up to the point where it provides 3 percent of the gross domestic
product. How rapidly the isolation of Omanis is ending is attested
by the omnipresent satellite dishes that bring in foreign television
to anyone who can afford them.
Oman also has initiated a system of civil courts that
operates in parallel to the Islamic law courts and owes much to
English common law. Clearly Omani pride and self-assurance in never
having been colonized makes its people more open to borrowing what
they find good in the West, while conserving the unique features
of their ancient culture. The satellite dishes and increasing tourist
presence reflect the government's new confidence that when Omanis
freely compare their own achievements with those of other nations,
they will opt for continuation of the combination of careful planning
and free-market exuberance that has made their country an Arab model
for developing nations everywhere.
Richard H. Curtiss is the executive editor of the
Washington Report on Middle East Affairs.
SIDEBAR 1
Achievements of Oman's Past 25 Years:
Two press conferences conducted June 4 and 5 by Omani
Minister for Development Mohammed bin Musa Al-Yousef for some 70
foreign journalists and Omani media personnel attending a seminar
entitled "Vision for Oman's Economy: 2020" in Muscat yielded a remarkable
array of facts about Oman's achievements during the first 25 years
of Sultan Qaboos bin Said Al-Said's reign, his government's plans
for the next quarter century, and quotable assessments by Mr. Al-Yousef.
Among them:
- Oman's goal is to double per capita income by the year 2020,
making full allowances for the country's current rapid rate of
population increase. It seeks to do this by developing expertise
in such fields as agriculture and fisheries and through encouraging
entrepreneurship. It also anticipates that the rate of annual
population increase will drop from the present very high 3.5 percent
to 2.7 or 2.8 percent by 2020 as a result of improved education,
greater participation of women in the labor force, and family
planning programs already underway.
- Oman seeks to provide health care and primary education for
all of its citizens.
- Oman plans to restore fiscal balance over the next 25 years.
At present the debt is not at a dangerous level since it does
not exceed 34 to 35 percent of the gross domestic product.
- Although Oman is in the process of removing subsidization from
the economy, such progress will be gradual. The country plans
to remove subsidies from gasoline and telephones, but it
does not plan to raise the price of education or subsidized water
and electricity.
- In the fifth five-year plan, starting in 1996, there will be
a drop in public expenditures. These reductions will be extended
to all public sectors including the military, and they will be
accomplished through increased participation by the private sector.
There will be no decrease in salaries or allowances in
the public sector.
- In Oman, trade is free. The private sector may import from any
country it chooses.
- Oman's currency is stable and the government puts no restrictions
on sending remittances abroad or on investment abroad by its citizens,
with the exception of some socialist countries or countries which
have put artificial restrictions on currency exchange rates.
- Oman's 8.5 percent annual real growth rate in the gross domestic
product (GDP) is one of the highest in the world. Although
Oman also has a very high birth rate, nevertheless its present
per capita GDP growth rate exceeds 3 percent.
- Oman's "steady progress and improvement in the quality of life
has brought it to a level comparable with the most developed countries,"
according to Mr. Al-Yousef.
Goals for the Second Quarter Century:
- The environment is a central concern, having received special
attention from Sultan Qaboos.
- Human resources development is another central Omani concern
and is necessary in order to make its economy fully competitive
internationally.
- "There is no development without Omanization," which must extend
beyond the government to include the private sector. At present,
of 430,000 expatriates in Oman, 180,000 work in private and public
sector establishments, and 190,000 are in domestic service or
agriculture.
- Oman has reserves of 25 trillion cubic feet of natural gas.
- The World Bank has labeled Oman an "outstanding performer" and
therefore considers that Oman has "graduated" in that it no longer
needs World Bank loans.
- In seeking to extend privatization of its economy, Oman does
not require all foreign firms to have indigenous partners. Of
19 commercial banks operating in Oman, 8 are 100 percent foreign-owned.
- Oman's investment law of 1994 permits repatriation of profits
of 49 percent and, with special permission, of up to 65 percent
or even 100 percent. Oman also will negotiate with foreign investors
tax holidays of 5 years or 10 years.
- As a result of this "flexible and hospitable environment," according
to Mr. Al-Yousef, "I don't think any country can compete with
Oman as an 'investor's paradise.'"
- Oman imposes high tariffs in very few categories, sending "a
message to our private sector that it now is not just an Omani
market or a GCC market but a global market in which it must compete."
- Oman has embarked on a 10-year plan for tourism, which it hopes
will comprise about 3 percent of the GNP by the year 2020. Similarly,
a well-thought-out program for promotion of Omani handicrafts
is expected to provide increased employment.
- Because Oman's level of savings is low, planned facilities for
producing and exporting liquid natural gas (LNG) will require
$6 to $8 billion in foreign investment, including transfer of
technical, marketing and management expertise.
- Because Oman requires more water for its expanding population
it is relying on water desalinization in some areas where water
is scarce and on improved utilization in some agricultural areas,
which can switch from flood to drip irrigation systems.
- Although Oman has been criticized for devoting 30 to 35 percent
of its national budget to defense and security, this figure includes
police as well as military costs, and also includes the full cost
of a weapons system in the budget for the year in which it is
purchased, instead of spreading such costs over several budgets
as do many other countries. Therefore this percentage is not out
of line with the true costs of military budgets for other countries
in the region.—RHC
SIDEBAR 2
Oman at a Glance
Population: 2.1 million, of whom one quarter are expatriates
(1995).
Total Land Area: 309,500 sq.km. (About the size of
the state of Kansas).
Capital: Muscat.
Ethnic Distribution: Mostly Arabs, small numbers of
Baluchis, Indians.
Language: Arabic.
Religion: More than 50% Ibadhi Muslim, remainder Sunni
and Sh'i Muslim and Hindu.
Literacy: 41% (1995).
Per Capita Income: $7,365 (1992 estimate).
Total GDP: $11.54 billion (1994 estimate).
Major Industries: Petroleum production and refining
(4.5 billion barrels proven reserves); natural gas production (20
trillion cubic feet estimated reserves); construction, cement, copper,
dates, fishing.
Transportation: 22,800 miles of highway; one passenger
ship; four transport aircraft; 122 airports (114 usable).
Chief of State: Sultan Qaboos bin Said Al-Said (since
July 23, 1970).
National Day: Nov. 18.
Climate: Hot and humid along the coast during the
summer and pleasant throughout the winter.
Geographic Features: Narrow coastal strip, rugged
mountains in north & south, vast interior desert plain.
Form of Government: Monarchy with consultative council.
Year Admitted to U.N.: 1971
Organizations: Arab League, Gulf Cooperation Council,
Organization of the Islamic Conference.
Armed Forces: Total personnel (army, navy, air force,
royal guard) 29,500.
Defense and National Security Spending: $1.75 billion
(1994).
U.S. Aid: $600,000 military aid; $15 million economic
aid (economic aid to be discontinued in 1996).
Life Expectancy: Men 66 years; women 70 years (1994).
Birth Rate: 40.3 births per 1,000 population (1994).
Death Rate: 6 deaths per 1,000 population (1994).
Natural Increase: 3.5% (1994).
Education: Non-compulsory. 481,100 students attending
1,002 schools; one university (1994).
Communications: Two radio stations; one TV station;
five daily newspapers of which three are in Arabic and two ( Oman
Daily Observer and Times of Oman ) are in English.
Trading Partners: Exports: Japan, South Korea,
Taiwan; Imports: UK, UAE, Japan, U.S.
Currency: One Omani rial equals U.S. $2.58. One U.S.
dollar equals .387 Omani rial (1995).
National Airlines: Gulf Air for international flights.
Oman Aviation for regional and internal flights.
Travel: Business visitors must have a local sponsor;
Travel agencies and some Omani hotels can sponsor tourists; no U.S.
State Department restrictions; no innoculations required.
Embassies: Embassy of Oman, 2535 Belmont Rd. NW, Washington,
DC 20008, Tel. (202) 387-1980.
U.S. Embassy, P.O. Box 50200, Madinat Qaboos, Muscat,
Tel: 698-989
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