TextCountries of the Gulf Cooperation Council (GCC) have grown dependent on the migrantworkforce to fuel their economic growth, with 35 million foreign migrants living in the GCC in2019, according to the United Nations UN. In recent years, policymakers of the GCC countrieshave grown wary of this increased dependence and have launched efforts to nationalize theirworkforce in an attempt to rectify the structural labour imbalances that have developed over thelast few decades.In particular, many GCC leaders are worried about social stability and have sought to addressthe high rates of unemployment among citizens, the education systems that fail to provide theskills and competencies required by the private sector, the striking gender imbalance in theworkforce, and the low levels of private-sector employment among citizens.These efforts at nationalizing the workforce have intensified in response to the recent COVID-19 crisis and the resulting plunge in oil prices and economic contraction, with the InternationalMonetary Fund (IMF) reporting that the GCC economies will contract by 7.6% in 2020. Thisdownturn is mostly evident in the tourism, aviation, and oil sectors, due to the decreased globaldemand for these services and resources. In response, some Gulf businesses have sought to passthe cost of the COVID-19-induced recession on to vulnerable workers by imposing unilateralpay-cuts and replacing migrants with nationals-a trend that has been witnessed in Saudi Arabia,but also in Bahrain, Oman, and Kuwait. Source: Arab Reform InitiativeQ1. What recommendations can be given to GCC policymakers to avoid negative economic growth.Q2. Define migrants' remittances. Why this flow is important for migrant's home countriesQ3. Discuss the GCC policy to limit unemployment. How this policy would affect migrants' workers?

Negative economic growth happens when the output level of the economy falls consistently. The growth…

Q1. What recommendations can be given to GCC policymakers to avoid negative economic growth. Q2. Define migrants' remittances. Why this flow is important for migrant's home countries Q3. Discuss the GCC policy to limit unemployment. How this policy would affect migrants' workers?

Q1. What recommendations can be given to GCC policymakers to avoid negative economic growth. Q2. Define migrants' remittances. Why this flow is important for migrant's home countries Q3. Discuss the GCC policy to limit unemployment. How this policy would affect migrants' workers?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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