The UAE and Foreign Policy - Case Study Example

SURVEY IN SOCIAL SCIENCES Asthe2nd prevalent economy in the often belligerent Arabworld, the UAE boasts of a GDP of $570 billion and an annual GDP growth of 4.6%, and is striving to diversify its economy to avertthecurrentsituationwheretheeconomy is overly dependent on theoilandpetroleumsector.Apart from Dubai, the 85% of revenues of allothercountries in the UAE come from theenergysector which has alsoserved to bail out themajoreconomies during times of crisissuch as the 2007-2010 crises.The UAE transition timeline indicatestheperceivedconflicts between thegovernmentandexternal firms whenthegovernmenthaltedthe exportation of oil from Iraqi Kurdistan in 2012 (United Arab Emirates profile, 2015). Similarly, the tourism sector is growing significantly with homebusinessesgrowing ominously. Theregion, since 1985, has beenexperiencinglowemploymentrates despite thecontinualincrease in education levels. In 1985, theunemploymentratesstood at 0.9% as compared to a whopping 3.5% in 2014. In March to June 2006, the UAE madeeconomicchangesallowingformation of tradeunions by localworkersandreducedthedependence on foreignworkerswhowereperceived to be drainingawaytheregion’s resources (Almezaini, 2011; United Arab Emirates profile, 2015).According to Almezaini (2011), manybusinesseshavebeen foreign-owned, a factor that has hamperedthegrowthanddevelopment of UAE residents. Thisstudycandidlyand comprehensively strives to examinethegrowth of the UAE economyandtheregion's jobmarketand infrastructural development by addressingthefollowingquestions to hypothesise howpolicymakers should act to improvetheregion’s well-being: Does the UAE havemoregovernmentjobsbeingcreated than in thepast as a way of curbingthecontinualunemployment? As thenumber of Emiratis startingtheir businessesincessantly upsurges, where will the level be by 2021? Thequestions will be addressedfrom 3 importantsocialsciencesincludingeducation, sociology, andeconomics as thesesubjects are closelyentwined in the UAE transition timeline and UAE vision 2021. The sociological Labour processtheoryandtheclassicaleconomictheoryare related to thesurvey. Firstly, Laborprocesstheoryconnotesthatmanagersandemployers are continuously deskilling thelabourforce to makelabourcheapandeasy to controlworkers (Caprio&Bacchetta, 2012). The capitalist economieshavegainedcontrol of thelabourforcereducingtheemployees’ aptitudeandcapability to bargainforbetter-workingconditionsand remunerations (Almezaini, 2011). Consideringthatthesurvival of allsocietiessolely depends on theproductionsystem, this is a significantreasonmany Emiratis are shifting from thepublicsector to theprivatesectorleading to thegrowth of locally-owned businesses. What’smore, theclassicaleconomictheoryexplicatesthattheeconomy has theability to control itself implyingthatthecontinualeconomicgrowth in the UAE leads to creation of morejobs as a way of absorbingthemanygraduates that enterthejobmarketeveryyear(Caprio&Bacchetta, 2012).Moreover, wheneconomicresourcesare effectivelyutilised, therequired GDP is automatically produced through theeconomy’s self-adjustment mechanisms (Almezaini, 2011). From thebackgroundinformationpresented at thecommencement of thisresearch, as the UAE’s populationincreases, morepeople will be working in theprivatesector by 2021. The UAE cabinetholdsthateconomic diversification is theonlywayfortheregion to survive in thefuture. “We wantthe UAE to sustain its drive toward economic diversification, as this is thenation's surestpath to sustainable development in a future that is less reliant on oil. Thismeansexpandingnewstrategicsectors to channel our energies into industriesandserviceswherewe can build a long-term competitiveadvantage” (UAE Cabinet, 2010). To ensuretheprosperity of all Emiratis, home-grown entrepreneurial will be encouragedimplyingthatover60% of allbusinesses in the UAE will be privatelyowned. Thisimpliesthatover 50% of Emiratis will be working in theprivatesector by 2021, a factor that will significantly curbthepersistentincrease in unemploymentrates (UAE Cabinet, 2010). The UAE is alsostriving to curbunemployment by creatingmorejobs than in thepast, butthis has been diminutivein addressingtheunemploymentchallenge (Almezaini, 2011). Theresults from a surveyconducted are significantly different from theexpectedoutcomes. Thecurrentamount of currentprivatebusinesses that stands at 59% is expected to increase to 70% by theyear 2021 whenthe UAE will be celebrating its golden jubilee(Caprio&Bacchetta, 2012). Similarly, the 10% of governmentjobs that Emiratis are currently strugglingfor is expected to increase to 51% whileunemployment levels plummet from 8% to -46% as held by 35% of themalesand -42% as suggested by 64% of thefemaleparticipants. Theresults from the data are different from thepredictedresults. Forinstance, itwaspredictedthat by 2021, 60% of UAE businesses will be privatelyownedwhereasthedataindicatesthatprivatelyownedbusiness will upsurge to a whopping 70% from thecurrent 59%. However, thedataindicatesthatgovernmentjobs will increase to 51% by 2021, a percentage that is almostequal to thepredictedresults of 50%. Thedifference can be attributed to thesheerfactthatthepredictionsfailed to considerthefactthatuniversityenrolment in the UAE is risingquicklykeepingthe risk-taking spiritalive. Thepredictionsalsodisregardedtheelementthatthe UAE is striving to create a competitiveadvantage by adopting a customer-cantered approachwhereproduction will be driven by demand (United Arab Emirates, 2015). Theincrease in theneed to customize productsandservices to meetthecomplexdemands of the marketplace impliesthatmoreprivatebusinesses will mushroom. Theaboveresultsare related to the overall objective of thesurvey as itindicatesthepeople’s socialandeconomicprospects that are critical to theattainment of vision 2021. The UAE hopes to be thebestregion by 2021 by creating a cohesive society that is sociallyand economically empowered (UAE Cabinet, 2010). Theresults of thestudies are supportive in generatingways that the UAE can use in fightingthepessimism that Emiratis haveregardingtheattainment of UAE vision 2021. Thegrowth of theprivatesector significantly relies on theamount of supportthatthegovernmentoffers to private investors (Almezaini, 2011). Reduction of taxesandprovision of governmentsubsidiesstirsthegrowth of theprivatesector. Theexpectedincrease of privatelyownedbusiness to 70% will also rely on investmentpoliciessuch as howthegovernmenttreatforeign investors. Similarly, therisingwagebillandunemployment is incessantlyforcingthegovernment to diversifytheeconomysothatmany Emiratis can be empowered (Almezaini, 2011). Furthermore, thesupply of graduates will create its demandreducingtheunemploymentrate as timegoes by. Policymakers can usethegroupresults to gaugethepublichopeandconfidence in thegovernment. Thereportindicatesthatthegovernmentis dedicated to theinhabitants’ well-beinghence policymakers can usetheresults to formulateandimplementsocialandeconomicpolicies that can help in increasingjobsanddevelopinginfrastructure that will supportthegrowth of theprivatesector.Moreover, forthe UAE to attain a sustainable development, policymakers can devise policiesaimed at bolsteringthecreation of jobs by thegovernment. References Almezaini, K. S. (2011). The UAE and Foreign Policy: Foreign Aid, Identities and Interests. Hoboken: Taylor & Francis. Caprio, G., &Bacchetta, P. (2012).Handbook of safeguarding global financial stability: Political, social, cultural, and economic theories and models. London: Academic Press. UAE Cabinet: 'We want to be among the best countries in the world by 2021' | GulfNews.com. (2010). Retrieved from http://m.gulfnews.com/news/uae/uae-cabinet-we-want-to-be-among-the-best-countries-in-the-world-by-2021-1.579412 United Arab Emirates profile - Timeline - BBC News. (2015). Retrieved from http://www.bbc.com/news/world-middle-east-14704414 United Arab Emirates. (2015). UAE Vision 2021 |. Retrieved from http://www.vision2021.ae/en Read More