OPEC: Still an ‘Instrument of Change’?

Abstract

The Organization of Petroleum Exporting Countries (OPEC) marks its 60th anniversary in 2020. At the time of OPEC’s 20th anniversary in 1980, the organization could celebrate its role as an “instrument of change” that promoted not only members’ interests but also the interests of broad constituencies, including especially developing countries. OPEC and its members had demonstrated how to overcome the negative economic consequences of colonialism, and sought to extend their success to others through the New International Economic Order adopted by the United Nations in 1974. But from the late 1970s onward, the Organization became focused on internal issues of oil market management and, despite its noble expressions and intentions, was unable to bring about the global changes it sought. Today, on OPEC’s 60th anniversary, the central challenge is no longer how to overcome the colonial economic legacy. Instead, the organization has an opportunity to resume its leadership role by adopting policies that defend not only its own members but also broad constituencies—and especially developing countries—against the consequences of global warming. This article suggests how OPEC could rise to the occasion.