Wallowing in cash.

With oil prices at their highest level in two decades, revenues of some $600m a day are gushing into the Gulf, double the volume during the 1990s. The monarchies of the Gulf Co-operation Council are likely to earn $35 billion more from oil exports this year than last, according to Standard Chartered bank, and that excludes big producers such as Algeria, Libya and Iraq. With Arabs warier of investing in the West than during previous booms, more of the cash is staying at home. Aside from a region-wide property boom, this has fuelled a surge in Arab stock indices. Even oil-poor countries are winning. Investment and tourism from the Gulf have restored some confidence in battered Lebanon. Jordan's exports are up by a third from last year. Egypt's economy is showing renewed signs of vigour. Government finances have also improved markedly, especially among Arab oil producers. The bad news is that the Arabs' recent good fortune is poorly shared. In the past, higher oil revenues have reduced pressure on governments to push through badly-needed reforms. Full coffers give governments little incentive to privatise, deregulate or make public accounts transparent, all long-standing demands of both foreign and local investors.