Time For Arab Oil Producing Countries To Spread The Wealth To Its Own People

On and off on this blog I have complained, argued (whatever) in the past that it was a shame that the Arab world was void of any practical or realistic leadership. Not only has this had an impact on the political level but an economic one as well.

A few Arab countries (Kingdoms) have been good at producing and building world class Hotels and other architectural beauties. But one can't help but feel that this is superficial. On the surface it looks great but what about the Arab society at the lower levels?

Here's a report from the McKinsey Global Institute that discusses, in part and in more adequate depth, this issue.

With oil prices tripling since 2002, one of the many questions to be answered is whether the new generation of Gulf Cooperation Council (GCC - as opposed to the Grand Council of Crees) leaders will invest the money more wisely. Specifically, will they throw some pennies back into domestic economy while trying to keep unemployment low. The money can't stay circulating at the top forever.

The part of this report that interests me is the notion of building a sound economic base in this part of the world with the funds.

If they succeed in reconfiguring their economies and societies, this can go a long way in helping to curb if not defeat the temptation to join terrorist ranks.

If they don't, well, look at it this way. Let's take a worst case scenario. Let's assume oil runs out and/or oil prices revert back to the $25-$30 mean. That's a lot of wealth and opportunity that will have been squandered. Saving for a rainy is just plain prudent.

It is important for the GCC to build real economies. On the flip side, the massive investment injections expected to come into Western economies raises all sorts of interesting questions for policy makers on this side of the pond.

In any event, there is no excuse for leading Arab oil producing countries to not spread and share the wealth its own people.