In 1993 Bahrain was a constitutional monarchy in the form of an amirate with an executive-cabinet form of government and a separate judiciary. The amir is head of state and also supreme commander of the Bahrain Defense Force (BDF); he exercises ultimate authority in all matters pertaining to the government. In addition to the amir, Shaykh Isa ibn Salman, principal government officials include his eldest son and heir apparent, Hamad ibn Isa, who is commander in chief of the BDF and deputy prime minister, and several other members of the ruling Al Khalifa. In accordance with the constitution adopted in 1973, the office of amir passes from father to eldest son unless the amir designates another male relative to succeed him. This clause of the constitution is not subject to amendment.
Although the amir has substantial executive powers, in practice he has delegated decision-making authority to a cabinet since 1956, when an amiri decree created the Administrative Council, an eleven-member body that advised the ruler on policy and supervised the growing bureaucracy. In 1970 Shaykh Isa ibn Salman issued a decree that transformed the Administrative Council into a twelve-member Council of Ministers. The president of the Council of Ministers, the prime minister, serves as the head of government. The amir appoints the prime minister, who then forms a government by selecting members of the Council of Ministers, albeit in consultation with the amir. The ministers are directly responsible to the prime minister, who, like the amir, has authority to veto a decision by any member of the council.
The Council of Ministers gradually expanded to include eighteen members, including the prime minister and the deputy prime minister. In late 1992, the prime minister, deputy prime minister, and seven of the sixteen ministers were members of the ruling Al Khalifa. The prime minister, Khalifa ibn Salman, is the brother of the amir. The amir's son holds the cabinet rank of deputy prime minister. The amir's uncle, Major General Khalifa ibn Ahmad, is minister of defense; and the amir's two first cousins, Muhammad ibn Khalifa and Muhammad ibn Mubarak, are minister of interior and minister of foreign affairs, respectively. Khalifa ibn Salman, the son of the amir's second cousin, is minister of labor and social affairs. A more distantly related cousin, Abd Allah ibn Khalid, a first cousin of the amir's grandfather, is minister of justice and Islamic affairs.
Monday, January 7, 2008
The Constitutional Experiment
On December 16, 1971, the day Bahrain formally became independent of Britain (Bahrain technically gained its independence earlier in the year, on August 15), Shaykh Isa ibn Salman announced that the country would have a constitutional form of government. Six months later, he issued a decree providing for the election of representatives to a Constituent Assembly, charged with drafting and ratifying a constitution. The assembly was to consist of twenty-two elected delegates plus twenty additional members, including eight delegates appointed by the amir and the twelve members at the time of the Council of Ministers. The election, which was held in December 1972, was the first national election in Bahrain's history. The electorate was restricted, however, to native-born male citizens aged twenty years and older.
The relative openness of political debate permitted during the election campaign for the twenty-two contested Constituent Assembly seats encouraged individuals dissatisfied with the lack of democratic rights to demand more civil liberties. The primary focus of concern was the 1965 Law of Public Security, a series of three amiri decrees that authorized the ruler to maintain indefinitely a virtual state of emergency in order to protect national security from suspected foreign and domestic enemies. A group of mostly university-educated professionals, led by Abd al Aziz Shamlan, unsuccessfully petitioned the amir to rescind the law's harshest provisions, especially those pertaining to arrest and detention. They believed these measures had been used arbitrarily to silence dissent and peaceful opposition. Several women's groups also organized to protest the exclusion of women from the franchise. They presented a petition to the amir requesting support for extending voting rights to female citizens, but they failed to receive a positive response.
The Constituent Assembly was in session during most of 1973. It approved a constitution of 108 articles. The constitution, enacted by amiri decree in December 1973, provided for an advisory legislative body, the National Assembly, consisting of thirty members elected for four-year terms, plus all the members of the Council of Ministers whose terms were not fixed. The assembly was not empowered to initiate or enact legislation, but it was authorized to give advice and consent to laws proposed by the Council of Ministers. The assembly had the right to question individual ministers about policies and to withdraw confidence from any minister except the prime minister. The constitution stipulated that the amir could dissolve the assembly at his discretion, provided he make public the grounds for so doing. If the assembly were dissolved by decree, new elections had to take place within two months or the dissolution would be invalidated and the dismissed members reinstated.
Election for the National Assembly took place in December 1973, with the franchise restricted, as in the Constituent Assembly election, to male citizens. In theory, the thirty elected representatives were independents because political parties were not permitted; in practice, several of the assemblymen openly supported the positions and views of banned political organizations, including the National Front for the Liberation of Bahrain, which espoused Marxist economic ideas. Consequently, two distinct coalitions emerged in the assembly: the People's Bloc, consisting of eight members who advocated the legalization of labor unions and the abolition of the 1965 security measures; and the Religious Bloc, consisting of six Shia members who supported labor reforms and various social restrictions, such as a ban on the sale of alcoholic beverages. The majority of elected members--sixteen representatives-- comprised a heterogeneous group of independents whose individual positions shifted with the issues. The People's Bloc and the Religious Bloc tended to refer to the independents pejoratively as the Government Bloc because they usually tried to effect compromises between the ministers and their National Assembly critics.
Although the National Assembly lacked authority to prevent the government from enacting legislation that assembly members opposed, this situation did not impede policy debates. The unprecedented public debates attracted wide interest and, from the perspective of the regime, seemed to erode its legitimacy. During the winter and spring of 1975, a prolonged debate over a new state security decree proved especially troubling for the government. It appeared that most independents, as well as the Religious Bloc, supported the demand of the People's Bloc that the decree, issued in December 1974 without prior consultation with the assembly, be submitted to the legislature for ratification before its implementation. The issue was unresolved in May 1975, when the assembly recessed for the summer. In August, before the members reconvened, the amir dissolved the National Assembly, citing its inability to cooperate with the government. Although the constitution stipulated that new elections had to take place within two months of a dissolution, this did not occur. One year later, in August 1976, Shaykh Isa ibn Salman announced that the National Assembly would remain dissolved indefinitely.
Although there are no political parties through which citizens can express views, they can petition the amir for redress of grievances. The amir holds a regular majlis, or public meeting, at which he listens to views of citizens and accepts petitions for his intervention in dealing with the bureaucracy or some other problem. Officials of the islands' eleven municipalities follow the amir's example and hold local versions of the national majlis.
The relative openness of political debate permitted during the election campaign for the twenty-two contested Constituent Assembly seats encouraged individuals dissatisfied with the lack of democratic rights to demand more civil liberties. The primary focus of concern was the 1965 Law of Public Security, a series of three amiri decrees that authorized the ruler to maintain indefinitely a virtual state of emergency in order to protect national security from suspected foreign and domestic enemies. A group of mostly university-educated professionals, led by Abd al Aziz Shamlan, unsuccessfully petitioned the amir to rescind the law's harshest provisions, especially those pertaining to arrest and detention. They believed these measures had been used arbitrarily to silence dissent and peaceful opposition. Several women's groups also organized to protest the exclusion of women from the franchise. They presented a petition to the amir requesting support for extending voting rights to female citizens, but they failed to receive a positive response.
The Constituent Assembly was in session during most of 1973. It approved a constitution of 108 articles. The constitution, enacted by amiri decree in December 1973, provided for an advisory legislative body, the National Assembly, consisting of thirty members elected for four-year terms, plus all the members of the Council of Ministers whose terms were not fixed. The assembly was not empowered to initiate or enact legislation, but it was authorized to give advice and consent to laws proposed by the Council of Ministers. The assembly had the right to question individual ministers about policies and to withdraw confidence from any minister except the prime minister. The constitution stipulated that the amir could dissolve the assembly at his discretion, provided he make public the grounds for so doing. If the assembly were dissolved by decree, new elections had to take place within two months or the dissolution would be invalidated and the dismissed members reinstated.
Election for the National Assembly took place in December 1973, with the franchise restricted, as in the Constituent Assembly election, to male citizens. In theory, the thirty elected representatives were independents because political parties were not permitted; in practice, several of the assemblymen openly supported the positions and views of banned political organizations, including the National Front for the Liberation of Bahrain, which espoused Marxist economic ideas. Consequently, two distinct coalitions emerged in the assembly: the People's Bloc, consisting of eight members who advocated the legalization of labor unions and the abolition of the 1965 security measures; and the Religious Bloc, consisting of six Shia members who supported labor reforms and various social restrictions, such as a ban on the sale of alcoholic beverages. The majority of elected members--sixteen representatives-- comprised a heterogeneous group of independents whose individual positions shifted with the issues. The People's Bloc and the Religious Bloc tended to refer to the independents pejoratively as the Government Bloc because they usually tried to effect compromises between the ministers and their National Assembly critics.
Although the National Assembly lacked authority to prevent the government from enacting legislation that assembly members opposed, this situation did not impede policy debates. The unprecedented public debates attracted wide interest and, from the perspective of the regime, seemed to erode its legitimacy. During the winter and spring of 1975, a prolonged debate over a new state security decree proved especially troubling for the government. It appeared that most independents, as well as the Religious Bloc, supported the demand of the People's Bloc that the decree, issued in December 1974 without prior consultation with the assembly, be submitted to the legislature for ratification before its implementation. The issue was unresolved in May 1975, when the assembly recessed for the summer. In August, before the members reconvened, the amir dissolved the National Assembly, citing its inability to cooperate with the government. Although the constitution stipulated that new elections had to take place within two months of a dissolution, this did not occur. One year later, in August 1976, Shaykh Isa ibn Salman announced that the National Assembly would remain dissolved indefinitely.
Although there are no political parties through which citizens can express views, they can petition the amir for redress of grievances. The amir holds a regular majlis, or public meeting, at which he listens to views of citizens and accepts petitions for his intervention in dealing with the bureaucracy or some other problem. Officials of the islands' eleven municipalities follow the amir's example and hold local versions of the national majlis.
Legal System
The legal system of Bahrain in 1993 was based on several sources, including customary tribal law (urf), three separate schools of Islamic sharia law, and civil law as embodied in codes, ordinances, and regulations. Sharia law includes the Maliki school of Islamic law (from Abd Allah Malik ibn Anas, an eighth-century Muslim jurist from Medina) and the Shafii school of Islamic law (from Muhammad ibn Idris ash Shafii, a late eighth-century Muslim jurist from Mecca). Both of these schools are recognized by Sunni Muslims. The third school is the eighth-century Jaafari (from Jaafar ibn Muhammad, also known as Jaafar as Sadiq, the Sixth Imam) school of Twelver Islam, recognized by Shia. Civil law is heavily influenced by British common law, inasmuch as it was developed by British legal advisers beginning in the 1920s and continuing up to the eve of independence in 1971.
According to the constitution of 1973, the judiciary is an independent and separate branch of government. However, the highest judicial authority, the minister of justice and Islamic affairs, is appointed by, and responsible to, the prime minister. The amir, who retains the power of pardon, is at the pinnacle of the judicial system.
Bahrain has a dual court system, consisting of civil and sharia courts. Sharia courts deal primarily with personal status matters (such as marriage, divorce, and inheritance). Sharia courts of first instance are located in all communities. A single sharia Court of Appeal sits at Manama. Appeals beyond the jurisdiction of the sharia Court of Appeal are taken to the Supreme Court of Appeal, which is part of the civil system.
The civil court system consists of summary courts and a supreme court. Summary courts of first instance are located in all communities and include separate urf, civil, and criminal sections. The supreme courts hear appeals from the summary courts. The Supreme Court of Appeal is the highest appellate court in the country. The Supreme Court of Appeal also decides on the constitutionality of laws and regulations.
According to the constitution of 1973, the judiciary is an independent and separate branch of government. However, the highest judicial authority, the minister of justice and Islamic affairs, is appointed by, and responsible to, the prime minister. The amir, who retains the power of pardon, is at the pinnacle of the judicial system.
Bahrain has a dual court system, consisting of civil and sharia courts. Sharia courts deal primarily with personal status matters (such as marriage, divorce, and inheritance). Sharia courts of first instance are located in all communities. A single sharia Court of Appeal sits at Manama. Appeals beyond the jurisdiction of the sharia Court of Appeal are taken to the Supreme Court of Appeal, which is part of the civil system.
The civil court system consists of summary courts and a supreme court. Summary courts of first instance are located in all communities and include separate urf, civil, and criminal sections. The supreme courts hear appeals from the summary courts. The Supreme Court of Appeal is the highest appellate court in the country. The Supreme Court of Appeal also decides on the constitutionality of laws and regulations.
Foreign Relations
Since independence in 1971, one of the most important objectives of Bahrain's foreign policy has been to contain perceived threats to the country's security. As the smallest state in the region, Bahrain feels vulnerable to political influences emanating from more powerful neighbors, in particular Iran and Iraq, and it regards close ties to Saudi Arabia and other Arab monarchial regimes as a means of countering these potentially harmful influences. During the 1970s, for example, the Baath socialist media in Baghdad frequently denounced Manama as an enemy of Arab nationalism and a puppet of Washington's imperialism because it allowed United States naval vessels to use a naval base in Bahrain. The government also believes that Baghdad has provided financial and other support to Bahraini opposition groups calling for the overthrow of the Al Khalifa dynasty. Although Iraq moderated its policies toward Bahrain in the late 1970s, the Iranian Revolution of 1979 confronted the government with new ideological challenges. Some Shia clergy in Tehran denounced the institution of monarchy as un-Islamic, and some Shia political dissidents in Bahrain embraced this message enthusiastically. During the 1980s, government officials suspected Iranian complicity in four separate plots that it maintained were aimed at the overthrow of the regime.
The outbreak of the Iran-Iraq War in 1980 aroused security concerns that Bahrain shared with the other five Arab monarchies in the gulf: Kuwait, Qatar, the UAE, Oman, and Saudi Arabia. During the 1970s, Bahrain lobbied these countries to cooperate in defense matters, but, other than bilateral agreements, little came from these efforts. By early 1981, when the fighting between Iran and Iraq appeared to have settled into a long-term conflict, attitudes changed, and all five Arabian Peninsula oil-producing states joined Bahrain in the GCC. Ostensibly, the GCC agreement emphasized economic cooperation, but the level of cooperation in security matters increased annually. For Bahrain this meant financial assistance for expanding its defense forces and facilities and the opportunity to participate in joint training maneuvers. When fellow GCC member Kuwait was invaded by Iraq in 1990, Bahrain joined the collective military effort against Iraq by sending a small contingent of troops to the front lines in Saudi Arabia. It also permitted United States military forces to use its naval and air facilities.
Since 1981 Bahrain's most important foreign relations have been with its GCC allies, although problems with individual members of the GCC have developed. The most serious problems have been with Qatar. Bahrain and Qatar have unresolved territorial disputes stemming from the nineteenth century when the Al Thani of Qatar foreswore allegiance to the Al Khalifa and established a separate amirate. In the twentieth century, the two states have contested sovereignty over Hawar and the adjacent islands, the closest of which is fewer than two kilometers from Qatar's west coast. In 1939, when both countries were still dependencies of Britain, London ruled that the islands belonged to Bahrain. Qatar never accepted this decision and periodically has raised the issue. Incidents connected with this dispute occurred in 1978, in 1982, and in 1986, but each time they were defused by the mediation of other GCC states. The most serious crisis, from April to June 1986, involved Qatari forces raiding the Fasht ad Dibal coral reef island north of Al Muharraq and seizing twentynine foreign workers who were building a coast guard station for the government of Bahrain. The repercussions from this incursion have continued into the 1990s. These incidents tended to strain overall relations with Qatar.
Outside the Persian Gulf region, Bahrain has cordial relations with other countries. The two non-Arab countries with which it maintains the closest relations are Britain and the United States. After the Persian Gulf War, Bahrain held negotiations with Washington that culminated in 1992 in the signing of a defense cooperation agreement. The terms of this agreement permit the United States to pre-position military supplies and equipment in Bahrain and to use its military facilities.
Bahrain is a member of several international organizations, including the United Nations, the International Monetary Fund, and the World Health Organization. It also belongs to several regional organizations, the most important of which is the League of Arab States, as well as to OPEC and the Organization of the Islamic Conference.
The outbreak of the Iran-Iraq War in 1980 aroused security concerns that Bahrain shared with the other five Arab monarchies in the gulf: Kuwait, Qatar, the UAE, Oman, and Saudi Arabia. During the 1970s, Bahrain lobbied these countries to cooperate in defense matters, but, other than bilateral agreements, little came from these efforts. By early 1981, when the fighting between Iran and Iraq appeared to have settled into a long-term conflict, attitudes changed, and all five Arabian Peninsula oil-producing states joined Bahrain in the GCC. Ostensibly, the GCC agreement emphasized economic cooperation, but the level of cooperation in security matters increased annually. For Bahrain this meant financial assistance for expanding its defense forces and facilities and the opportunity to participate in joint training maneuvers. When fellow GCC member Kuwait was invaded by Iraq in 1990, Bahrain joined the collective military effort against Iraq by sending a small contingent of troops to the front lines in Saudi Arabia. It also permitted United States military forces to use its naval and air facilities.
Since 1981 Bahrain's most important foreign relations have been with its GCC allies, although problems with individual members of the GCC have developed. The most serious problems have been with Qatar. Bahrain and Qatar have unresolved territorial disputes stemming from the nineteenth century when the Al Thani of Qatar foreswore allegiance to the Al Khalifa and established a separate amirate. In the twentieth century, the two states have contested sovereignty over Hawar and the adjacent islands, the closest of which is fewer than two kilometers from Qatar's west coast. In 1939, when both countries were still dependencies of Britain, London ruled that the islands belonged to Bahrain. Qatar never accepted this decision and periodically has raised the issue. Incidents connected with this dispute occurred in 1978, in 1982, and in 1986, but each time they were defused by the mediation of other GCC states. The most serious crisis, from April to June 1986, involved Qatari forces raiding the Fasht ad Dibal coral reef island north of Al Muharraq and seizing twentynine foreign workers who were building a coast guard station for the government of Bahrain. The repercussions from this incursion have continued into the 1990s. These incidents tended to strain overall relations with Qatar.
Outside the Persian Gulf region, Bahrain has cordial relations with other countries. The two non-Arab countries with which it maintains the closest relations are Britain and the United States. After the Persian Gulf War, Bahrain held negotiations with Washington that culminated in 1992 in the signing of a defense cooperation agreement. The terms of this agreement permit the United States to pre-position military supplies and equipment in Bahrain and to use its military facilities.
Bahrain is a member of several international organizations, including the United Nations, the International Monetary Fund, and the World Health Organization. It also belongs to several regional organizations, the most important of which is the League of Arab States, as well as to OPEC and the Organization of the Islamic Conference.
The Economy
Agriculture and Fishing
Despite the scant rainfall and poor soil, agriculture historically was an important sector of the economy. Before the development of the oil industry, date palm cultivation dominated Bahrain's agriculture, producing sufficient dates for both domestic consumption and export. At least twenty-three varieties of dates are grown, and the leaves, branches, buds, and flowers of the date palm also are used extensively. From the 1950s through the 1970s, changing food consumption habits, as well as the increasing salinity of the aquifers that served as irrigation sources, led to a gradual decline in date cultivation. By the 1980s, a significant number of palm groves had been replaced by new kinds of agricultural activities, including vegetable gardens, nurseries for trees and flowers, poultry production, and dairy farms.
By 1993 Bahrain's cultivated area had been reduced from 6,000 hectares before independence to 1,500 hectares. The cultivated land consists of about 10,000 plots ranging in size from a few square meters to four hectares. These plots are distributed among approximately 800 owners. A minority of large owners, including individuals and institutions, are absentee landlords who control about 60 percent of all cultivable land. The ruling Al Khalifa own the greatest number of plots, including the largest and most productive ones, although public information pertaining to the distribution of ownership among family members is not available. Absentee owners rent their plots to farmers, generally on the basis of three-year contracts. There are approximately 2,400 farmers, 70 percent of whom do not own the land they cultivate.
The small size of most plots and the maldistribution of ownership has tended to discourage private investment in agriculture. In addition, the number of skilled farmworkers progressively declined after 1975 because an increasing number of villagers obtained high-paying, nonagricultural jobs. Despite these impediments, official government policy since 1980 has aimed at expanding domestic production of crops through such programs as free distribution of seeds, technical assistance in adopting new and more efficient irrigation technologies, and lowinterest credit. Although these programs have contributed to significant increases in the production of eggs, milk, and vegetables, the circumscribed extent of Bahrain's cultivable area limits the island's potential productive capacity. Consequently, agricultural imports remain a permanent aspect of the country's international trade. In 1993 the main food imports included fruits, vegetables, meat, live animals (for slaughter), cereals, and dairy products.
The waters surrounding Bahrain traditionally have been rich in more than 200 varieties of fish, many of which constitute a staple of the diet. Before the development of the oil industry, most males engaged in some form of fishing. In addition, the pearl industry constituted one of the most important bases of the island's wealth, and more than 2,000 pearling boats operated during the late 1920s. After 1935 both fishing and pearling as occupations steadily declined. Although the prospect of steady wages attracted many pearl divers to oil-related jobs, pearling was even more adversely affected by the development in Japan of the cultured pearl. By 1953 only twelve pearling boats remained, and these all disappeared within a decade. Fishing declined more gradually, but by the early 1970s fewer than 1,000 fishermen continued to ply their trade. Fewer fishermen meant less fish available in the market despite rising consumer demand, and this situation led to the annual importation of tons of fish to supplement the local catch. In 1981 the government launched a program to revitalize the fishing industry by introducing trawlers, motorizing the traditional dhows, expanding jetties, constructing cold storage facilities, and offering training courses on the use and maintenance of modern fishing equipment. These initiatives contributed to an increase in the total fish catch, which according to estimates of the Food and Agriculture Organization of the United Nations, was 9,200 tons in 1989.
Pollution in the Persian Gulf became a problem in the 1970s. Shrimp in the northern gulf seemed particularly sensitive to marine pollution, and by 1979 they had almost disappeared from waters near Bahrain. Pollution was seriously aggravated in 1983 and again in 1991 by major oil slicks that emanated from wardamaged oil facilities and covered several thousand square kilometers of water in the northern Persian Gulf. The slicks were detrimental to the unique marine life in the vicinity of Bahrain, including coral reefs, sea turtles, dugongs (herbivorous sea mammals similar to manatees), oyster beds and shrimp beds, numerous fish species, and water fowl. The oil slicks, especially those of 1991, adversely affected the fishing industry, but as of early 1993, marine biologists remained uncertain about the longterm ecological impact of the pollution.
Despite the scant rainfall and poor soil, agriculture historically was an important sector of the economy. Before the development of the oil industry, date palm cultivation dominated Bahrain's agriculture, producing sufficient dates for both domestic consumption and export. At least twenty-three varieties of dates are grown, and the leaves, branches, buds, and flowers of the date palm also are used extensively. From the 1950s through the 1970s, changing food consumption habits, as well as the increasing salinity of the aquifers that served as irrigation sources, led to a gradual decline in date cultivation. By the 1980s, a significant number of palm groves had been replaced by new kinds of agricultural activities, including vegetable gardens, nurseries for trees and flowers, poultry production, and dairy farms.
By 1993 Bahrain's cultivated area had been reduced from 6,000 hectares before independence to 1,500 hectares. The cultivated land consists of about 10,000 plots ranging in size from a few square meters to four hectares. These plots are distributed among approximately 800 owners. A minority of large owners, including individuals and institutions, are absentee landlords who control about 60 percent of all cultivable land. The ruling Al Khalifa own the greatest number of plots, including the largest and most productive ones, although public information pertaining to the distribution of ownership among family members is not available. Absentee owners rent their plots to farmers, generally on the basis of three-year contracts. There are approximately 2,400 farmers, 70 percent of whom do not own the land they cultivate.
The small size of most plots and the maldistribution of ownership has tended to discourage private investment in agriculture. In addition, the number of skilled farmworkers progressively declined after 1975 because an increasing number of villagers obtained high-paying, nonagricultural jobs. Despite these impediments, official government policy since 1980 has aimed at expanding domestic production of crops through such programs as free distribution of seeds, technical assistance in adopting new and more efficient irrigation technologies, and lowinterest credit. Although these programs have contributed to significant increases in the production of eggs, milk, and vegetables, the circumscribed extent of Bahrain's cultivable area limits the island's potential productive capacity. Consequently, agricultural imports remain a permanent aspect of the country's international trade. In 1993 the main food imports included fruits, vegetables, meat, live animals (for slaughter), cereals, and dairy products.
The waters surrounding Bahrain traditionally have been rich in more than 200 varieties of fish, many of which constitute a staple of the diet. Before the development of the oil industry, most males engaged in some form of fishing. In addition, the pearl industry constituted one of the most important bases of the island's wealth, and more than 2,000 pearling boats operated during the late 1920s. After 1935 both fishing and pearling as occupations steadily declined. Although the prospect of steady wages attracted many pearl divers to oil-related jobs, pearling was even more adversely affected by the development in Japan of the cultured pearl. By 1953 only twelve pearling boats remained, and these all disappeared within a decade. Fishing declined more gradually, but by the early 1970s fewer than 1,000 fishermen continued to ply their trade. Fewer fishermen meant less fish available in the market despite rising consumer demand, and this situation led to the annual importation of tons of fish to supplement the local catch. In 1981 the government launched a program to revitalize the fishing industry by introducing trawlers, motorizing the traditional dhows, expanding jetties, constructing cold storage facilities, and offering training courses on the use and maintenance of modern fishing equipment. These initiatives contributed to an increase in the total fish catch, which according to estimates of the Food and Agriculture Organization of the United Nations, was 9,200 tons in 1989.
Pollution in the Persian Gulf became a problem in the 1970s. Shrimp in the northern gulf seemed particularly sensitive to marine pollution, and by 1979 they had almost disappeared from waters near Bahrain. Pollution was seriously aggravated in 1983 and again in 1991 by major oil slicks that emanated from wardamaged oil facilities and covered several thousand square kilometers of water in the northern Persian Gulf. The slicks were detrimental to the unique marine life in the vicinity of Bahrain, including coral reefs, sea turtles, dugongs (herbivorous sea mammals similar to manatees), oyster beds and shrimp beds, numerous fish species, and water fowl. The oil slicks, especially those of 1991, adversely affected the fishing industry, but as of early 1993, marine biologists remained uncertain about the longterm ecological impact of the pollution.
Petroleum Industry
In 1929 the San Francisco-based Standard Oil Company of California (Socal)--now known as Chevron--set up a subsidiary to acquire an oil exploration and production concession on the island of Bahrain. Socal drilling crews discovered oil in 1932, and two years later the first shipment of crude oil was exported from Sitrah. By 1935, when sixteen oil wells were in production and construction of the Bahrain refinery commenced, the royalties that Socal paid to the government constituted more than 40 percent of the state budget. In 1936 Socal sold half of its oil interest to Texas Oil Company (Texaco) and, with its new corporate partner, formed the Bahrain Petroleum Company (Bapco). In the years up to independence in 1971, Bapco oil revenues annually averaged 60 percent of government income and helped to finance major development, education, and health programs. The government of Bahrain acquired a 60 percent interest in Bapco in 1975 and assumed control of the remaining 40 percent in 1980.
Bahrain's proven oil reserves are limited in comparison with the extensive oil fields of Kuwait and Saudi Arabia. As early as 1965, Bapco estimated that one-half of the island's total oil had been depleted. Oil production peaked in 1977 at 77,000 barrels per day and steadily declined thereafter.
During the 1970s and early 1980s, two developments helped to maintain the government's relatively high income from oil revenues despite declining production. First was Bahrain's share of profits from the offshore Abu Safah oil field in the Persian Gulf between Bahrain and Saudi Arabia. When the two countries demarcated their marine boundaries in 1958, Bahrain ceded its claims to an area of the gulf north of the island in return for a Saudi agreement to share the profits from any oil that might be discovered there. Subsequently, oil in commercial quantities was found in the seabed, and from 1968 to 1986, revenues from the Abu Safah field contributed significantly to Bahrain's overall oil income. Since production from the Abu Safah field ceased in early 1987, Saudi Arabia has provided Bahrain with 75,000 bpd of crude oil as compensation for this loss.
The second development was the more than tenfold increase in oil revenues that followed the December 1973 decision by the Organization of the Petroleum Exporting Countries (OPEC) to triple the international price of crude oil. During 1974 and 1975, income from oil accounted for an unprecedented 80 percent of government revenues, although this percentage gradually declined in subsequent years. Nevertheless, as long as oil prices remained high, oil revenues remained high. At the end of 1985, however, Saudi Arabia significantly increased its own oil production, which resulted in a glut of oil on international markets and caused prices to fall by more than 50 percent in just a few months. Bapco could not increase production from its declining oil fields beyond 42,000 bpd, and consequently Bahrain's oil revenues in 1986 were 65 percent less than in 1985. Oil revenues did not increase substantially until 1990, when the regional political crisis that accompanied Iraq's invasion of Kuwait precipitated a rise in oil prices. In 1991 oil revenues constituted about 62 percent of revenues in the government's budget.
Although Bahrain has had an oil-based economy since 1935, by 1993 proven reserves were estimated at 200 million barrels, and the government anticipated that all oil would be depleted by 2005. Nevertheless, the country's economists expected oil to remain important long beyond that date because of the large refinery Bapco has operated at Sitrah since 1937. Periodically expanded and modernized, the refinery has the capacity to process 250,000 bpd of crude oil, at least five times the amount produced by the island's oil wells. During 1992 the United States firm Bechtel Corporation began expanding the refinery's capacity to 360,000 bpd. More than 80 percent of the petroleum that the refinery processes comes via pipeline from Saudi Arabia. The Sitrah refinery has been refining Saudi crude oil since 1938 and expects to continue to do so well into the twenty-first century. Its refined petroleum products, most of which are exported, include aviation fuel, fuel oil, and gasoline.
Substantial deposits of natural gas are associated with Bahrain's oil fields. Before 1979, when the government established the Bahrain National Gas Company (Banagas), an estimated 3 million cubic meters per day of this gas were being vented to the atmosphere. Banagas opened a gas liquefaction plant that collected this gas and processed it into propane, butane, and naphtha. There are also large deposits of natural gas in the Khuff field, which is separate from the oil fields. Banagas has drilled more than fifteen wells to tap this gas, which is used for fuel to power the oil refinery, electric generators, and the water desalination plant. Some of the gas is reinjected into the oil fields to maintain reservoir pressure and stimulate production. In 1990 Banagas estimated total natural gas reserves at 209 trillion cubic meters; daily production averaged about 20 million cubic meters.
Bahrain's proven oil reserves are limited in comparison with the extensive oil fields of Kuwait and Saudi Arabia. As early as 1965, Bapco estimated that one-half of the island's total oil had been depleted. Oil production peaked in 1977 at 77,000 barrels per day and steadily declined thereafter.
During the 1970s and early 1980s, two developments helped to maintain the government's relatively high income from oil revenues despite declining production. First was Bahrain's share of profits from the offshore Abu Safah oil field in the Persian Gulf between Bahrain and Saudi Arabia. When the two countries demarcated their marine boundaries in 1958, Bahrain ceded its claims to an area of the gulf north of the island in return for a Saudi agreement to share the profits from any oil that might be discovered there. Subsequently, oil in commercial quantities was found in the seabed, and from 1968 to 1986, revenues from the Abu Safah field contributed significantly to Bahrain's overall oil income. Since production from the Abu Safah field ceased in early 1987, Saudi Arabia has provided Bahrain with 75,000 bpd of crude oil as compensation for this loss.
The second development was the more than tenfold increase in oil revenues that followed the December 1973 decision by the Organization of the Petroleum Exporting Countries (OPEC) to triple the international price of crude oil. During 1974 and 1975, income from oil accounted for an unprecedented 80 percent of government revenues, although this percentage gradually declined in subsequent years. Nevertheless, as long as oil prices remained high, oil revenues remained high. At the end of 1985, however, Saudi Arabia significantly increased its own oil production, which resulted in a glut of oil on international markets and caused prices to fall by more than 50 percent in just a few months. Bapco could not increase production from its declining oil fields beyond 42,000 bpd, and consequently Bahrain's oil revenues in 1986 were 65 percent less than in 1985. Oil revenues did not increase substantially until 1990, when the regional political crisis that accompanied Iraq's invasion of Kuwait precipitated a rise in oil prices. In 1991 oil revenues constituted about 62 percent of revenues in the government's budget.
Although Bahrain has had an oil-based economy since 1935, by 1993 proven reserves were estimated at 200 million barrels, and the government anticipated that all oil would be depleted by 2005. Nevertheless, the country's economists expected oil to remain important long beyond that date because of the large refinery Bapco has operated at Sitrah since 1937. Periodically expanded and modernized, the refinery has the capacity to process 250,000 bpd of crude oil, at least five times the amount produced by the island's oil wells. During 1992 the United States firm Bechtel Corporation began expanding the refinery's capacity to 360,000 bpd. More than 80 percent of the petroleum that the refinery processes comes via pipeline from Saudi Arabia. The Sitrah refinery has been refining Saudi crude oil since 1938 and expects to continue to do so well into the twenty-first century. Its refined petroleum products, most of which are exported, include aviation fuel, fuel oil, and gasoline.
Substantial deposits of natural gas are associated with Bahrain's oil fields. Before 1979, when the government established the Bahrain National Gas Company (Banagas), an estimated 3 million cubic meters per day of this gas were being vented to the atmosphere. Banagas opened a gas liquefaction plant that collected this gas and processed it into propane, butane, and naphtha. There are also large deposits of natural gas in the Khuff field, which is separate from the oil fields. Banagas has drilled more than fifteen wells to tap this gas, which is used for fuel to power the oil refinery, electric generators, and the water desalination plant. Some of the gas is reinjected into the oil fields to maintain reservoir pressure and stimulate production. In 1990 Banagas estimated total natural gas reserves at 209 trillion cubic meters; daily production averaged about 20 million cubic meters.
Other Industry
By 1965 the government recognized that the island's long-term prosperity could not depend on the limited extent of its oil reserves. Accordingly, the government adopted industrial diversification as a primary objective of its economic policy. Tax incentives and low-interest loans encouraged private entrepreneurs to construct several small-scale manufacturing plants, including factories producing plastics, ceramic tiles, paper products, and carbonated beverages. The government assumed a more active role in the establishment of large-scale industry, as a result of which manufacturing contributed 13 percent of the gross domestic product in 1986. The two most important examples of large-scale industry were the aluminum plant and the ship-repair yard.
Aluminium Bahrain (Alba) was incorporated in 1968 as a joint government and private investment company for the construction of a mill to process imported raw alumina. Located near the Bapco refinery, the Alba plant began production in 1971 with an initial capacity of 99,000 tons of aluminum ingots. Since commencing operations, the Alba facilities have expanded considerably and by 1990 had an annual productive capacity of more than 215,000 tons. Associated with Alba are two other aluminum factories built during the 1980s. The Gulf Aluminium Rolling Mill Company (Garmco), a joint venture of the six member countries of the GCC, produces aluminum strip and sheet. The Bahrain Aluminium Extrusion Company (Balexco), owned 100 percent by the government, produces aluminum doors, window frames, and other products used by the construction industry. A third concern, the jointly owned Bahrain-Saudi Aluminium Marketing Company (Balco), markets Alba's products throughout the Middle East and Asia.
In 1977 the Arab Shipbuilding and Repair Yard Company (ASRY) was inaugurated near Al Hadd. ASRY was a joint venture of Bahrain and the six other members of the Organization of Arab Petroleum Exporting Countries (OAPEC). This large dry-dock facility has accommodations for up to ten supertankers simultaneously, and it annually repairs an average of seventy ships.
Aluminium Bahrain (Alba) was incorporated in 1968 as a joint government and private investment company for the construction of a mill to process imported raw alumina. Located near the Bapco refinery, the Alba plant began production in 1971 with an initial capacity of 99,000 tons of aluminum ingots. Since commencing operations, the Alba facilities have expanded considerably and by 1990 had an annual productive capacity of more than 215,000 tons. Associated with Alba are two other aluminum factories built during the 1980s. The Gulf Aluminium Rolling Mill Company (Garmco), a joint venture of the six member countries of the GCC, produces aluminum strip and sheet. The Bahrain Aluminium Extrusion Company (Balexco), owned 100 percent by the government, produces aluminum doors, window frames, and other products used by the construction industry. A third concern, the jointly owned Bahrain-Saudi Aluminium Marketing Company (Balco), markets Alba's products throughout the Middle East and Asia.
In 1977 the Arab Shipbuilding and Repair Yard Company (ASRY) was inaugurated near Al Hadd. ASRY was a joint venture of Bahrain and the six other members of the Organization of Arab Petroleum Exporting Countries (OAPEC). This large dry-dock facility has accommodations for up to ten supertankers simultaneously, and it annually repairs an average of seventy ships.
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