OPEC's Political Options: Case for Collective Self-Reliance within the Third World *

Abstract

Since the 1973 oil embargo, OPEC's political and economic leverage in global politics has progressively weakened. This decline in OPEC's relative power is due largely to the oil producers' increased dependence on the West for technology, markets, security, and investment opportunities. To counteract this increasing dependency, this paper argues for increased economic collaboration with the Third World, including a complete redirection of OPEC's investments. Collective self-reliance would help diversify and strengthen the oil producers' economies, as well as strengthen and improve the well-being of the Third World as a whole.