GCC(Gulf Co-operation Council)

Did You Know:-

💡 What is G.C.C. ?
💡 Why was it formed ?
💡 Are its impacts & Plans successful ?

G.C.C.

💡how has it overcome its own critics ?

💡What is its structure ?

1. what is g.c.c. ? 

G.C.C is Gulf Co-operation Council with 6 Seven member countries, Saudi Arabia, UAE, Bahrain, Kuwait, Oman & Qatar established on 25 May 1981 in Riyadh, Saudi Arabia to enhance regional co-operation, integration & interconnection of its members. All the 6 members are monarchy including UAE-Federal monarchy, Oman, Qatar & Bahrain- Constitutional monarchy and Saudi Arabia & Oman-Absolute monarchy.

2. why was it formed? 

G.C.C. was formed to address several issues, for example:-

1. The GCC was established in May 1981 and is formally called the Cooperation Council for the Arab States of the Gulf.

2. The GCC was formed against the backdrop of a tense political situation in the region, including the Islamic revolution in Iran, the Iran-Iraq war, Egypt's peace treaty with Israel, and the Soviet invasion of Afghanistan.                                 
3. These events accelerated the decision of the Gulf countries to unite in pursuit of common security objectives. The GCC was primarily conceived as a regional security alliance.              
4. Though the economic cooperation aspects of the GCC may be more visible, the organization was established primarily as a security alliance for the Gulf countries in response to the unstable regional environment at the time.                             
5. While regional economic cooperation has often been driven by political considerations, as seen with the EU and ASEAN, the GCC was first and foremost focused on security rather than economic factors.

3.ARE ITS IMPACTS AND PLANS SUCCESSFUL? 

G.C.C. has several major impacts on the world like:-

📈. Economic:- G.C.C. has emerged as a major economic force, with an estimated nominal GDP per capita of 💲53,916 primarily led by its vast oil resources. It is currently the 2nd largest Supranational monetary union in the world.

 🏛. Political:-  G.C.C. so far is a part of Arab League. It has managed to create regional links with Europe by signing a bilateral cooperation contract with E.U. in 1988. Under which both political groups foreign minister meet to discuss with other senior officials, energy experts etc… While It also creates a stronger sense of unity while safeguarding its members from the Security threat of Iran. It also creates a superior influence on the Oil market, as most of its members are amongst the biggest exporters of Oil in The world.

🤝. Social:- G.C.C. came together not only for Political & Economical but also to promote social & cultural development amongst its members states through joint operations & initiatives in areas such as Tourism, Education & Healthcare. It also served various other purposes like integrity of Regional customs & History with new developments.                              

Some Major plans of G.C.C are:-

💸. New Monetary Union:- 

i) On 15 December 2009,The common currency Plan was proposed in 

ii) On The main benefits of a monetary union include:

 Lower transaction costs and elimination of exchange rate   variability, boosting investment, trade, and growth

 Access to bigger financial markets and lower borrowing costs

 Potential enforcement of monetary and fiscal discipline

The main costs include:

 Loss of national monetary and exchange rate policies, requiring   greater labor and fiscal flexibility to adjust to shocks

 Risks from fiscal indiscipline in member countries leading to   negative spillovers

 One-time costs of institutional changes like currency conversion

iii)For the GCC countries, the potential benefits of a monetary union are likely to outweigh the costs, as they have already operated under a pegged exchange rate regime and their economies are highly sensitive to similar oil price shocks. The union could spur financial market integration and development, which is one of the key potential benefits.

iv) However, the success of the GCC monetary union will depend on appropriate macroeconomic policies, structural reforms, and careful design of the institutional framework to mitigate the costs. Particularly, addressing issues around credit policies and fiscal discipline will be crucial.

 

4. how has it overcome its own critics ? 

The G.C.C. has overcome its own critics through the following methods:

1. Making itself more approachable: One of the biggest reforms of G.C.C. are making itself more open to tourists and forgien investment.
2. Making A co-operative Economy: Privatizing government companies to encourage private entrepreneurship there by quickening the formation of an economy under Co-operation of Government and Individuals
3. Diversify its economy: One of the prominent reforms of G.C.C. is to diversify its economy away from the extinguishable resources into other Resources & activities like :- Ethanol(C₂H₅OH), Banking, Hospitality etc...
4. Women Empowerment: It bought Legal reforms to increase economic involvement of women. Discarding the laws putting women in disadvantageous position, for example the law which allows women above 18 years to drive with a male guardian only. Appointing Women on High position