The increases in petrodollars received by oil producing countries of the Middle East in the past few years can become a reality again when the world economy recovers from this recession. The access to so much hard currency in the past could have potentially improved the economies of these nations beyond imagination. Economic development specialists regard reaching some goals such as higher growth rate of real output, less chronic inflation, Improvements in education and healthcare services, greater diversity in the economy and in exports, greater equality in the distribution of income, and lower unemployment rate as indication of economic progress or socio –economic improvements in a developing country. The purpose of this paper is to evaluate the relative success of the Oil-Producing Countries of the Middle East in achieving the above socio- economic goals within the context of huge inflows of petrodollars into their countries every year. Through analysis of data from the region the author of this paper has obtained convincing evidence in support of the view that the oil-exporting nations have, for the most part, wasted the abundant and extremely valuable foreign currencies that they have received every year for the past several decades