Middle East Studies - Essay Example

Introduction The relationship between countries in the Persian Gulf themselves and between the latter countries and other western countries has been marred by tension and conflicts. Part of the reason for this is that there are religious misunderstandings that exist within the Persian Gulf countries themselves. Additionally, countries could be trying to protect their resources. It is no mystery that the Persian Gulf is fundamental to the world for trading purposes but it also serves as link between other important parts of the world. For instance, the Gulf connects Africa and Asia. It also provides a link between parts of Asia and Europe. (Ghorban, 2004) Social issues in the Persian Gulf Recent estimates have shown that the Persian Gulf region has one of the highest population growth rates in the world. Research has shown that majority of the citizens happen to be the youth. The youth as a group may have certain difficulties in adjusting to social change within the region. Additionally, there are problems with employment and other economic crises that may arise out of this youth outburst. Political transformations are also affected by the demographics of the regions. (Kartha, 1999) In the year 2007, it was found that the population in the Persian Gulf stands at 430 million. Researchers have projected that the population will almost double by the year 2050. This means that there is an overwhelming number of youth currently. Most of them lie between the ages of ten and twenty four. A similar survey found that a third of the population lies between the ages listed above. This means that these youth could continue propagating the population. A certain number of issues arise from these statistics. First of all, the overwhelming numbers of youth cannot be absorbed by the regions’ employment opportunities. These youth need to gain access to training and jobs but the region cannot provide this. Part of the reason why the youth unemployment rate is high is that there are certain prevalent systems that impede their access to these jobs. First and foremost, institutional impediments i.e. government entitlements that currently exist block the youth from job markets. Secondly, political instability makes it difficult to provide jobs for the youth. There is also a high level of mismatch within jobs. Additionally, more companies tend to recruit foreigners; this is highlighted by the fact that about fifty percent of workers in the Persian Gulf region are foreigners. Therefore the countries in the Persian Gulf have to deal with the fact that most of them lack the ability to provide employment for their youth. (Beaty, 2004) Religion is also another fundamental issue that affects the world’s population. This is because the Persian Gulf has the highest following of Muslim faithful in the world. They have played a role in shaping of the world’s history through their religion. It should however be noted that despite the fact that the countries in the Persian Gulf are predominantly Muslim, there are also other religions found there and these include; Judaism and Christianity. Most people speak Arabic but there are others who speak other languages. The main problem that has arisen out of their religious demographics is terrorism and religious tensions. The tensions occur as a result of religious extremism within the faith. Some followers choose to interpret their holy teachings in a radical manner and may consider non-adherents as enemies that need to be eradicated. This is the reason why there are numerous terrorist organizations in the Persian Gulf that have been created with the sole purpose of eliminating western countries. These extremist groups believe that the US, UK and other western countries are eroding Muslim traditions and are therefore enemies to the Muslim faith. Tensions are not only prevalent between the latter groups but they also exist between the Persian Gulf countries themselves. This is because there are factions within the Muslim faith i.e. the Sunnis and Shiites. These groups have been fighting one another for years on end and this has contributed to the volatile situation prevalent in the Persian Gulf today. (Ghorban, 2004) Political issues in the Persian Gulf The Political problems facing the countries in the Persian Gulf are linked to the social and economic issues prevailing. Most countries in the Persian Gulf have been categorized as undemocratic. This is because there is a continuous battle between the Shiite and Sunni factions of their parliament. For example, in Iran their parliament is divided on the basis of their religious following. Whenever one faction wins an election, it is common to find that the other’s opinions and views will be suppressed at all costs. The situation is also worsened by the autocratic system prevailing in most countries within the Persian Gulf. Most positions of authority within these countries are dominated by specific royal families. This undermines the will of the people because they are subject to laws passed by those specific countries. Additionally, their political elections are usually characterized by excess tensions where there is a battle for supremacy among varying groups. (Musharraf, 1999) The international world has not closed their eyes to the goings on in these countries. This is part of the reason why the US and its allies have conducted arms wars within these countries and the most outstanding one being Iraq. This outside interference has polarized the Persian Gulf even more because the heads have turned to countries invading them. Many experts have argued that the approach adopted currently by the international community is inappropriate (invasion of the region). They instead argue for more peaceful resolutions. (Beaty, 2004) Economic issues in the Persian Gulf The Persian Gulf harbors about sixty seven percent of all the oil reserves in the world and it is also a known fact that fossil fuels are the number one fuel source in the world. One can therefore not ignore the crucial role that this region’s economy represents to the rest of the world. Statistics released by Mulik (2003) showed the following for three countries in the Persian Gulf. Iraq has about 22.4 Billion barrels of oil produced annually; Iran has 33.7 billion barrels while Kuwait has 31 billion barrels. Iran has about 105 billion barrels of oil reserves in their territory; Iraq has 100 billion barrels while Kuwait has 93.6 billion barrels of reserves. Despite these huge figures, there are still numerous levels of unexplored resources within the region thus presenting tremendous opportunities for investors. The Persian Gulf provides the world with oil at consistent production levels and reasonable prices. Issues in production and economics are leveled-of by exchanges between western countries and The Persian Gulf region. The oil producers assure provision of oil to western countries and in exchange they get military protection from western countries. Because of political interference in oil production, prices are constantly fluctuating. There are high levels of military activities in the Persian Gulf hence undermining civil authority. Consequently, management needed within the production process has been reduced drastically. Experts have quoted a risk of ten to fifteen dollars for every barrel. In order to extract oil from the Persian Gulf region, investors must put in five dollars for each barrel. This will include exploration, capital risk allowance expenses. Consequently, producing oil in the Persian Gulf is the cheapest oil endeavor in the world. However, these figures do not mean that everything is smooth sailing. Countries within the Persian Gulf have realized that they have a lot of wealth; therefore most of them have made alliances and set up military defenses to protect their resources. (Ghorban, 2004) Another issue facing the countries in the Persian Gulf region is their battle with economic depression and high inflation rates. Those considering doing business in these countries may be face with numerous challenges of coping with these influxes. Opportunities for trade by Australia There are about ninety two billion barrels of crude oil reserves that are yet to be tapped by the International community (including Australia). In Iran, it was found in the year 2006 that there are about six hundred trillion cubic feet of untapped gas reserves found there. This country is one of the most resourceful in the world. Australia needs to take advantage of this by establishment of an oil exploration project within that region or Iran specifically. One must not underestimate the fact that the country under consideration is strategically located within the region. It is found between the Persian Gulf and the Caspian Sea. Therefore Australia stands to connect to the rest of the world by establishment of exploration rights within the Persian Gulf. However, in light of all the problems enlisted above, there is a need to incorporate this while establishing a company there. Australian employers wishing to wok in the Persian Gulf need to prepare for the politician and social problems prevailing in the region. First of all, the political tensions mean that there are there could be a lot of risk involved. Entrepreneurs need to inform their employees before hand of the situation. (Brig, 1999) They also need to be in constant communication with Australian representatives in the region so as to evacuate whenever there is need to do so. Employers need to make sure that they do not take sides in the prevailing local tensions so as to minimize friction between the two types of communities. Australia should also take advantage of the large youth population complaining of unemployment. Because there is a need to recruit skilled personnel, Australian employers could provide training opportunities for the local population in order to save on costs, stimulate goodwill from the locals and to enhance thir economic situation. (Beaty, 2004) Conclusion The Persian Gulf has been characterized by numerous cases of political and social clashes. First of all, the region is characterized by hereditary governance where certain influential countries gain exclusive rights to govern the country while the rest of the population is not considered. Additionally, the region is plagued by terrorist organizations and religious clashes. As if this is not enough, there are vast petroleum and gas reserves found in this region. Consequently, the international community has targeted some of the Persian Gulf countries in order to dominate these oil resources. The attacks have caused military defenses and instability in the region. However, this does not undermine the economic opportunities present in those countries. There are still some undiscovered oil reserves that investors can embrace. Australia can take advantage of their oil reserves to establish oil exploration facilities in those countries. It could also embrace the large youth population in the process of labor provision. This will reduce cost and stimulate growth within the region. (Ghorban, 2004) Reference: Kartha, T. (1999): Tools of Terror: Light Weapons and Indian Security; New Delhi: Knowledge World Publishers Brig. S. (1999): The Quranic Concept of War; Lahore: Wajidalis Mulik, T. (2003): Natural Gas: Imports to Meet Supply Gap: The Persian Gulf Survey, p 161 Ghorban, N. (2004): Middle East Natural Gas Pipeline Projects: Myth and Reality; The Iranian Journal of International Affairs, p.649 Beaty, J. (2004): The Outlaw Bank; New York: Random House Musharraf, P. (1999): Speech delivered as the chief executive of Pakistan on October 17, 1999, Dawn International Read More