It seems counter intuitive-- how can higher oil prices possibly make oil rich countries like Saudi Arabia worse off? Well, these prices are certainly hurting the middle class.

Today's New York Times article is a must read on the subject:

Here in Jordan, the cost of maintaining fuel subsidies amid the surge in prices forced the government to remove almost all the subsidies this month, sending the price of some fuels up 76 percent overnight. In a devastating domino effect, the cost of basic foods like eggs, potatoes and cucumbers doubled or more.

In Saudi Arabia, where inflation had been virtually zero for a decade, it recently reached an official level of 6.5 percent, though unofficial estimates put it much higher. Public protests and boycotts have followed, and 19 prominent clerics posted an unusual statement on the Internet in December warning of a crisis that would cause “theft, cheating, armed robbery and resentment between rich and poor.”

The inflation has many causes ranging from a weakening dollar to global commodity demand, but the fact is that average citizens in many oil rich countries are not benefiting from high oil prices. From Yemen to Morocco, the higher food prices and shrinking government subsidies have resulted in protests and demonstrations with people blaming corrupt officials for higher prices.

When we hear about the Middle East in the news we mostly hear about oil and conflict, but this article brings to light a new trend when it comes to the Arab world-philanthropy. However, the BBC reports that the Middle East needs to overcome several obstacles before becoming truly philanthropic, including the laws governing charities and nonprofits and American Policy.

Last month, while much of the globe watched the oft-hyped World Economic Forum, a first-of-its-kind summit of Arab philanthropists was held in this Persian Gulf city. Middle East royalty and Egyptian businessmen mixed with Lebanese activists and other humanitarian do-gooders to find ways to aid their troubled region. And they carried a pointed message to the Bush administration: Stop making the war on terror a war on Arab goodwill.