Dissertation_Dr Faisal Almubarak

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directly targeted at the urban centers during the first decades, reflected indirectly on the
rural areas by an exodus to the major centers. The growing city offered far better wages
and services, particularly in the booming oil and construction industries and the expanding
public sector attracted both nomads and villagers. For example, during the early 1970s, the
oil company offered an average annual wage of $2,675 for an unskilled laborer, while a
self-employed worker in agriculture received an average annual wage of $250. 46
Moreover, due to incessant migration, farmers suffered the loss of both supply of labor and
falling markets.
Unable to modernize apace with growing demand, agricultural production dwindled
as young farmers sought formal education and moved to the promising city. Compounded
by the influx of foreigners, urban population multiplied and with its nominal growth and
the rise in living standards, the demand for food production soared. The rising gap
between demand and production was immediately countered by rising foodstuff imports.
In addition, the government introduced various incentives to boost the meager agriculture
output. During the 1940s, King Abdul-Aziz contracted an American team to conduct a
study to assess and identify the agricultural potential in the Kingdom. In 1948, the first
department to handle agricultural development was created. Its first tasks were to help
farmers obtain ground water by mechanical means and dig new wells to increase output It
also supplied seeds and provided professional help to farmers on modern farming
techniques.
These efforts fell short of their goal. During the 1950s, local agricultural production
lagged and food shortages persisted. Incentives were increased comprising subsidies for
seeds and fruit trees, low-cost rents for agricultural machinery, government-paid
agricultural education and training, experts' advice in the use of chemical insecticides,
instruction in food preparation, the establishment of nurseries to supply farmers with
needed trees and to provide transplantation, and free veterinary treatment and checkups.
Moreover, financial backing included free-interest loans to help fanners buy equipment and
other necessities to expand production. In addition to direct incentives in the agricultural
sector, the government endowed rural areas with services to counter city-ward migration.
Hospitals in major towns, and health clinics in some villages as well as mobile clinics for
desolate areas were built and provided. This commitment to the rejuvenation of the rural
sector stemmed from the government's effort to allocate national income to attain a
"balanced" urban-rural growth and minimize over-urbanization in the form of concentration