- If and when the member states of the “Gulf Cooperation Cou...
If and when the member states of the “Gulf Cooperation Council” form a single currency, what political benefits and/ or drawbacks could occur and how will international relations with the Middle East be affected?
This essay will seek to argue that if and when the member states
of the "Gulf Cooperation Council" (GCC) form a single currency any
advantages may seem to exceed any disadvantages but that the actual
overall impact of the currency's creation for wider international
relations with the Middle East will prove to be somewhat
In order to see why we must first of all say something about the
history of the founding states of the GCC: Saudi Arabia, Kuwait,
Bahrain the United Arab Emirates (UAE), Oman and Qatar and the
factors that lead to the GCC's creation.
The new regionalism theory seeks to explain how states by
engaging in political and economic integration as trading blocks
and regional organisations seek to manage in an increasingly
interconnected world the forces of globalisation on their
In the longer term the GCC still faces the problem of how to
deal with the inevitable very longer term decline in oil based
wealth: the end of the rentier state. Either a fiscal crisis or a
growth in non oil trade amongst themselves and the rest of the
world (or some combination) may bring about slow incremental
political and economic change. The creation of the Kahleej Dinar
will not by itself particularly amount to much.