The petrodollar system was established in the early 1970’s. It was an agreement between oil-rich Gulf states and the United States. The terms were simple, Oil-rich states would sell their crude oil exclusively in dollars. In return, the United States will provide them with security from internal and external threats and also provide these countries with weapons and technology as well. The concept of the petrodollar was hailed across the United States because it provided stability and demand for U.S. dollars and became the most used currency in the world for international trade and commerce. While the petrodollar had its advantages for the United States it brought major troubles for the global south countries. Drawbacks of petrodollar Since oil-rich countries of the Gulf agreed they would sell crude oil only in U.S. dollars created problems for a lot of smaller countries. The main problem they faced was to hold significant amounts of dollars in their reserves if they wanted to buy
In 2011, out of nowhere, we saw a pattern of so-called revolutions that swiped across North Africa and the Middle East. Several countries were devastated in the form of huge infrastructure damages, millions displayed, and several thousands died as a result of conflict. Syria and Libya suffered the most under these so-called revolutions and the fight for democracy. In this article, we will discuss why Gaddafi’s ouster should never have taken place. How Libya was under his rule, and what Libya became after his ouster. Let’s get started. Libya Under King Idris’s Rule: Before Gaddafi, Libya was a monarchy under King Idris the First, he was head of the state from 1951 when the country got its independence from Italy. The plight of Libyans did not change much but instead, it became much worse under the king. It was due to widespread corruption and ineffective leadership in the country. Before Gaddafi’s rule, a small portion of the population controlled almost all the resources and weal