Managing Change and Innovation in GCC Countries - Research Paper Example

As it can be seen from the present global situation change is an inevitable form in the organizations whether they are small or big, operating on a national or international basis. Change does not take into account the kind of organization operating such as restaurant or computer or FMCGs. All these organizations worldwide are evolving as technologies are increased fourfold. Therefore, the leaders of the organizations have to prepare their personnel and processes for change. Leaders in the organization, as well as the managers, are continually making efforts in order to achieve successful change.

The focus of this research is the change in GCC countries. GCC countries contribute almost one-third to the total GDP as well as three-fourths to government revenues and exports annually. The GCC countries provide for 45% of the world’s oil reserve and possess 17% of world natural gas reserves (Fasano & Iqbal, 2003). But the GCC countries have long been transforming their economies to a diversified base other than oil. These countries had initiated the transformation almost 2 decades ago due to which their standard of living has risen.

This increase has had some expenses in the shape of heavy dependence on volatile oil revenues and exponential growth in population (Fasano & Iqbal, 2003). Although GCC countries have always played a helpful and constructive role in the assistance of developing countries, new challenges have emerged for the former countries. The GCC countries confront the challenges regarding the sustainability of increase in non-oil growth, investment in human capital and institutional reforms (Fasano & Iqbal, 2003).

Recent changes in the GCC countries have been towards the fiscal consolidation so that the budgets’ vulnerability in terms of oil price volatility can be reduced. Kuwait and Oman are some of the countries that have progressed in separating public expenditure through oil savings and stabilization funds.