Gulf Development Factors

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As we know, most of the Gulf monarchies in general exhibited weaker macroeconomic significantly registration and political instability in Dubai. To explain a little wobbly development in the region, political scientists offered several theories. Theory oil curse blames the lack of development in the Gulf countries depending on oil revenues has not been obtained. Proponents of this theory argue that this negative income distort economic and political insecurity generated. Another popular school of thought emphasizes the cultural to consider the pattern of regional development factors. Body of literature using Gulfs religious character of Islam and the Arabs to explain regional barriers. h test these theories will be useful because it will provide …show more content…

This result can manifest itself in two ways. The first is political instability. "Although oil money may initially calm the population fluctuations, the rent of the situation that can drastically reduce the country's oil production, which in the country, reducing expenses." Regardless of price changes, these high levels of government spending usually can not be maintained in the long run anyway, due to the nature of non-renewable resources. As oil reserves sun rental situation, usually raises taxes on its citizens to keep spending. "The transition to the tax may lead to instability and the institution of tax on people who are not used to pay for them can be quite difficult. People often react violently to change as evidenced by the recent political instability in Venezuela that followed to declining oil revenues in the 1980s' oil curse analysts like Michael Ross, another dangerous political consequences of oil revenues is oppression. "this effect can occur for several reasons. At first, it can happen when oil sales abroad rentals are sufficient to meet the needs of their budgets. At this point, the state of being free from any obligation to establish a social contract with the people of all political rights in exchange for a tax. "On the contrary, the state leased often make a new offer where access to goods and services in exchange for the surrender of the political state of the people," he said. As a result, the country continues to grow, can also increase military spending, ensuring the monopoly of the use of force and violence to further strengthen its control over the people. Also, when oil revenues began to dry, the loss of free or subsidized public goods can encourage citizens chaos, making the state accountable for the use of such powers to repress

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