Thursday, May 03, 2012

Saudi Arabia and Bahrain

A Gulf source sent me this:  "Looks like Saudi Arabia will swallow up Bahrain after all (see FP article below). For some time and despite the turmoil, I thought that the government will probably not reinstate the state of emergency law because sustained repression on such a scale is very expensive. Capital flight from Bahrain is taking place as it is. But if 1) a contingency plan to restructure Bahrain's economy is in the works alongside the "unity" project; and 2) Saudi Arabia decides to absorb the high cost of sustained repression -- for which it has the motivation as well as the resources -- the nightmare scenario is not far-fetched at all. It's a truly frightening prospect."