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Twin crises deepen Gulf states’ policy competition and independence

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A crisis often presents an opportunity for policy shift and a time to get ahead of the competition. But for the Gulf Arab states, the twin crises of the Covid-19 pandemic and the collapse of oil prices in 2020 have accelerated trends already underway to differentiate their economic policies and force more aggressive responses to demands for job creation and market liberalization. The Covid-19 pandemic has called upon states to intervene and support domestic economies, making the competing priorities of shrinking public sector payrolls and stimulating domestic demand all the more difficult. What emerges are trade-offs that reveal leadership priorities, targeted support, and important distinctions within the ever-weakening body of the GCC on a range of policies from immigration, labor markets, fiscal programs and taxes, to monetary policy.
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Keywords: COVID-19; Economic Liberalization; GCC; Gulf political economy; Oil Price

Document Type: Research Article

Affiliations: Resident Scholar, American Enterprise Institute, USA

Publication date: November 2020

This article was made available online on November 3, 2020 as a Fast Track article with title: "Twin crises deepen Gulf states’ policy competition and independence".

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  • Global Discourse is an interdisciplinary, problem-oriented journal of applied contemporary thought operating at the intersection of politics, international relations, sociology and social policy. The Journal's scope is broad, encouraging interrogation of current affairs with regard to core questions of distributive justice, wellbeing, cultural diversity, autonomy, sovereignty, security and recognition. All issues are themed and aimed at addressing pressing issues as they emerge. Rejecting the notion that publication is the final stage in the research process, Global Discourse seeks to foster discussion and debate between often artificially isolated disciplines and paradigms, with responses to articles encouraged and conversations continued across issues.

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    All research articles in this journal have undergone rigorous peer review, based on initial editor screening and double-blind peer review. All submissions must be in response to a specific call for papers.

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