REDUCING DEPENDENCE THROUGH INVESTMENT IN HUMAN-CAPITAL - AN ASSESSMENT OF OMAN DEVELOPMENT STRATEGY

The purpose of this paper is to assess Oman's post-1970 efforts at developing its human capital. In addition, estimates are made of the factors most likely to interfere with the country's progress in this area. The main findings of the study are that while impressive gains in education have been made, this progress may be threatened by the government's excessive military expenditure plans. While defense expenditures do not appear to compete with education for budgetary allocations, there is the possibility that the military's competition for non-financial resources might slow down job creation in such sectors as manufacturing to the extent that the demand for education by Omani nationals is reduced. © 1990.