Challenging Economic Sustainability within the Middle East

Economic sustainability is a topic that I believe is an important part of developing sectors of the world. The ability to grow at a rate that would not comprise continuous economic growth is a factor that cannot go overlooked. Take for example countries that are stricken by a resource curse, like the oil curse, which can cause major limitations as a country tries to expand. Furthermore, without that one recourse, a country can go from a booming economy to stagnate or failing state.

So what can be done about this problem? The solution is easier said than done in my eyes. We can specifically look at the Middle East which is a prime example of booming economies that face the oil curse but yet are some of the richest in the world. The region is home to countries like Saudi Arabia and the United Arab Emirates which can be seen worldwide as the pinnacle of wealth. While countries like Oman and Bahrain are slowly being left behind by the advancements of their neighbors. However, what is going overlooked in this region is that almost every country in the middle east is not developing sustainably. These countries are all stricken by the oil curse and has caused them to have almost no diversity in their economies, which is a major problem. The lack of diversity has influenced the population to be relatively lazy and unwilling to risk diversifying. The current practices of relying on a resource that will eventually run out will eventually hinder the development of these countries. This will even affect a country like Saudi Arabia that has practically limitless oil. As demand drops the GDP of these countries falls, which is not a good thing.

A solution to this problem is to force interregional trade of goods and commerce which will increase the flow of capital between the countries of the region. The countries currently have limited trade with each other but they all have large trade agreements with various countries around the world. The trade that I am suggesting is such that will expand the smaller markets of the economy while giving options to increase labor participation within the workforce.