Bahrain was, after Iran and Iraq, the first country in the Gulf to have its petroleum resources developed by Western companies. It has a longer history of economic and infrastructural development than any other state in the peninsula. Bahrain’s petroleum reserves and producing capacity are also the smallest of the Gulf oil producing states. Thus, Bahrain’s rulers were the first in the Gulf to confront the problem of building a diversified modern economy. Furthermore, while political legitimacy is problematical throughout the Gulf, it is especially so in Bahrain.