The Gulf Cooperation Council (GCC), more formally known as the Cooperation Council for the Arab States of the Gulf, is a trade bloc wherein six Arab states of the Persian Gulf carry with them many economic and social objectives. …
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The Iraq-Iran War, Iranian Revolution and Soviet invasion of Afghanistan were all major reasons the six countries mentioned above decided to form the GCC. This was primarily because they had the same vision of how their economies should be. They also agreed on what kind of defense is most effective against entities that could damage their countries.
The council was created on May 25, 1981 while on November 11, 1981, a unified economic agreement was signed between the partner countries. After the signing of the agreement in Riyadh, Saudi Arabia, the member countries were referred to as the Gulf Cooperative Countries.
The countries around the Persian Gulf are not all council members. Even nations like Iran or Iraq which border the Persian Gulf, did not come on board with the council. Meanwhile, Yemen seems to be warming up to the thought of joining the said cooperation.
Also, its headquarters may be found in Saudi Arabia. The council, having an administrative structure, meets about twice every year. For its governing bodies, there is a supreme council, a council of foreign ministers, an arbitration commission, and a general secretariat.
After implementing most of the provisions in their said agreement by the 1990s, the GCC decided to act on the security issues of their countries. By 1984, a deployment unit called the Peninsula Shield Force with a force of 5,000 men was formed for the council. With such, the member countries went on board with a mutual understanding of a way by which they are to defend against foreign attacks, effectively increasing the force’s number to 22,000.'s number to 22,000.
But aside from being able to deal it out in the field, the council has also ventured into talks that would help end territorial disputes between their own members and other non-member countries.
On January 1, 2008, the council's common market was introduced to the people of the gulf. This venture allowed the member people and companies of the cooperation to get over hurdles in cross country investments and services trade.
GCC has many objectives. One of them is to be able to formulate regulations in industries like the economy, finance, trade, customs, tourism, legislation and administration. It also aims to cultivate advancements in mining, agriculture, water and animal resources. It also wants to set up various partnered ventures, strengthen the relationship between their people, establish many scientific research centers and be able to encourage additional help from the private sectors.
Moreover, the council dreams of establishing a common monetary unit to be named Khaleeji by the year 2010.
Recognizably, due to the richness of the six member countries from their oil, petroleum and natural gas reserves, their economies are some of the fastest growing in the world. Over $900 billion in assets are being maintained by UAE investors in order to create a tax base and economic foundation before their natural resources finally run out.
According to the International Monetary Fund (IMF), the said region's 2006 Gross Domestic Product (GDP) was pegged at $717.8 billion. This was primarily because of the sudden economic growth in Qatar and the UAE. Just a year after, it became a whopping $1,022.62 billion. With the way it is going, the IMF predicts that it will reach about $1,112.076 billion by the end of this year and $1,210.112 by the end of 2009. A member country, Qatar, is also pegged to outrank Luxembourg as the topmost per capita grosser in GDP.
Aside from their economies, their region has also been recently been the venue for
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Six Arab countries that include The United Arab Emirates, The Sultanate of Oman, The State of Qatar, The State of Bahrain, The State of Kuwait, and The Kingdom of Saudi Arabia formed the Gulf Cooperation Council (The Cooperation Council for the Arab states of the Gulf, 2012, p.1).
The Arabian Gulf Cooperation Council is the economic and political forum that coordinates policy making for at least six member states including the states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
This essay mainly focuses on the characterization of the current level of political and economic integration among member countries of GCC. It also exposes major hindrances on the path of such integration, that become apparent in the countries of GCC. A belief that globalization creates world peace is supported by the countries of the union.
Bank loans were the major source of debt financing till date. In recent times, Debt financing has added a new instrument by issuing bonds.
Bonds are loans raised from market where, principal and interest in the form of coupons have to be paid periodically on agreed terms.
Currently, approximately 120 million tons of waste is produced in the Gulf Cooperation Council countries (GCC) putting the region in the top ten worldwide ranking of the biggest waste producers per capita. The United Arab Emirates
According to states Hebous (2006), the use of a single monetary system can lead to benefits such as low transaction costs, efficient trade, and low trade risks among the member. He points out the successes of the US and Euro-zone monetary unions as case for
Gulf Cooperation Council was started in 1981 by the leaders of the state of Kuwait, Qatar, Bahrain, Oman, United Arab Emirates and Saudi Arabia (Rashid, 21). The purpose of the council was to promote and enhance close ties among the member states and by formulating strategies to ensure that non-GCC countries would not intimidate its members or attack them. As a result, the council engages in integration courses including peace campaigns in its member’s countries (23).
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