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?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Text
Countries of the Gulf Cooperation Council (GCC) have grown dependent on the migrant
workforce to fuel their economic growth, with 35 million foreign migrants living in the GCC in
2019, according to the United Nations UN. In recent years, policymakers of the GCC countries
have grown wary of this increased dependence and have launched efforts to nationalize their
workforce in an attempt to rectify the structural labour imbalances that have developed over the
last few decades.
In particular, many GCC leaders are worried about social stability and have sought to address
the high rates of unemployment among citizens, the education systems that fail to provide the
skills and competencies required by the private sector, the striking gender imbalance in the
workforce, 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 International
Monetary Fund (IMF) reporting that the GCC economies will contract by 7.6% in 2020. This
downturn is mostly evident in the tourism, aviation, and oil sectors, due to the decreased global
demand for these services and resources. In response, some Gulf businesses have sought to pass
the cost of the COVID-19-induced recession on to vulnerable workers by imposing unilateral
pay-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 Initiative
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?

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