The purpose of this study is to expound the dilemma that, in spite of the huge wealth of Saudi Arabia, its drive for development and modernization is stumbling. This situation is due to a large extent to the country's severe administrative limitations.

This study examines the consequences of interdependence between Saudi Arabia and the United States from 1960 to 1978 as it relates to the concepts of cooperation and conflict. Research on interdependence focuses primarily on relations among Western countries and on whether interdependence is increasing or decreasing between them. It has rarely addressed relations between countries with different levels of economic development or the consequence of interdependence for international relations in terms of conflict and cooperation. Specifically, this study examines the following question: Does the level of interdependence between Saudi Arabia and the United States have any affect on the level of bilateral conflict and cooperation between the two countries? The hypotheses are tested using regression analysis. The primary conclusion is that increases in bilateral interdependence between Saudi Arabia and the United States from 1960 to 1978 produced increased cooperation as well as conflict.