What has the economic fortunes/misfortunes of your country been?
The United Arab Emirates (UAE) was one of the least developed countries some thirty years ago. However, the country today has recorded an economic level that can be compared to that the industrialized countries. Unlike the industrialized countries, which had to go through many development stages, UAE has leaped economically thanks to its huge oil revenues, which record a mass consumption rate. Due to the plentiful natural resource in the form of gas and oil UAE has embraced industries that are resource-based and that has facilitated its growth plan (Mallakh 88). This industrialized approach is based on the exploitation of natural resources. UAE has also fully exploited the windfall revenue, which is mainly aimed at a once-and-for-all increase in the social and economic infrastructure. This was what helped the nation to record the fast economic development that was recorded between 1973 and 1982.
Before UAE discovered and began to export oil, its revenues were based on subsistence agriculture, extraction and trade of pearls, nomadic animal husbandry, seafaring, and fishing. This shows how limited the country’s natural resources were, and the result was a simple survival economy (Mallakh 88). The early 1970s was when the economic turnaround of UAE began. Its federation was formed in 1971, a period when its social, economic and political organizations were also established. This corresponded with the enormous boost in oil production as well as oil exports, which was followed by the explosive shoot in the oil prices that was seen in 1973 (Mallakh 24). Since industrialization has proved to be very crucial in the transition of UAE’s economic development, it is thus connected to the idea of encouraging frontward and rearward relations with the rest of the economy.
What is the nature of your country's dependence or interdependence with the international economy?
According to the 2014 Index, UAE’s economic freedom score was 71.4, and this positioned it 28th among other nations that have economic freedom (Mallakh 123). It recorded a 0.3 point higher improvement from the previous year (Mallakh 123). Improvement was recorded in labor freedom, business freedom, and monetary freedom. However, there was a decline in corruption level and government’s interference with spending. Ever since the UAE was first assessed in 1996, it has recorded a continuous improvement and has been a leader in economic freedom. Progress in the partially ten monetary freedoms consists of progression in the management of public expenditure and market honesty. Considerable declines in the assets rights as well as liberty from bribery have barred a general achievement, although the nation has realized its maximum economic freedom score in ten years in the 2014 index (Mallakh 123).
The government of the United Arab Emirates, which is comprised of seven monarchies, took action to the requirement for change during the Arab spring. At that time, the government began a 1.6 billion dollar programme that was supposed to improve infrastructure in the underprivileged northern emirates. Over the same period, the government also increased the quantity of people who were allowed to participate in voting for the Federal National Council in elections of September in 2011 (Mallakh 125). 90% of the oil production is owed to Abu Dhabi, Dubai being the heart of finance, transportation, tourism, and commerce. Free trade regions that allow a hundred percent foreign possession with zero taxation assists in the diversification of UAE’s economy.
3. What do these scores tell you about your country's level of social development?
The UAE ranks on a top position level in the major indicators of the Global Competitive Report. In relation to other nations, it is ranked first in terms of high quality infrastructure, no indications whatsoever of organized crimes and no traces found in the increase in prices. This nation is also ranked second worldwide in the procurement of advanced technology by the government, effective government expenditures, good infrastructure in the quality in the aviation segment as well as the absence of trade barriers (“Survey of Economic and Social Developments in the Escwa Region 2007-2008”). The nation is also ranked third worldwide owing to the amount of trust that the citizens have in their political leaders and government, the absence of government bureaucracy and the competence in customs procedures as well as excellent ports. In addition, the nation ranks highly in creating interest, therefore, attracting technology by means of express foreign investment, as well as attracting talent that is specialized to create a knowledge economy.
The Human Development Report (HDR) also noted an outstanding development made by the government of the United Arab Emirates in regard to the health, education as well as the gross public revenue of its citizens (Gorgenländer, 40) . This, the HDR noted, recorded an increase in 2014 in comparison to the previous year and having it ranked 87 out of 187 nations all over the world. As per a report issued by the United Nations Development Programme, citizens of the UAE have a life expectancy of 76.8 years, which is as increase when compared to the previous year, which was recorded at 76.7 years (Young, 27). The nation’s government has engaged in programmes that have seen the empowerment of women, youth involvement, support of public employment, expansion of human capital, as well as being able to cope with environmental and man-made catastrophes.
Are there any particular problems in your country that might impede its social and economic development?
The fact that expatriates and foreign workers have to live according to the UAE law is one factor that many could reconsider based on their urgency in working in the country. People in the nation lead simple lives and emphasis is greatly put on tradition and the religion which is Islam.
South Asian expatriate laborers are unhappy with the life they lead in the emirate. Though these people usually enter UAE with the hopes of making money, they often experience difficulties upon arrival to the nation, and once these workers sign their employment contracts, they lose most of their rights. The hours of work are usually long, and they work for six days in a week. Their living conditions are not favorable either, as they are often housed in cramped dormitories, which are located on the outskirts of the city. Workers who dare to fight for their rights are branded as trouble makers and will often face deportation. The reason why these workers have to remain docile is because they are in the region just to make some money for themselves and to help their families.
Another problem is the abundance of oil in the regions which could also become a curse due to the abundance. This could slow down economic growth by producing an increase in the real trade rate. This could result from foreign trade inflows, which could result in less competitive non-oil exports, and also reducing the size of this sector as well. If the oils could be depleted, the UAE would face difficulties of trying to save the economy by embarking on non-oil trade, which at one time did not generate enough revenue for this nation.
Works Cited
Survey of Economic and Social Developments in the Escwa Region 2007-2008. City: United Nations Pubns, 2009. Print.
Mallakh, Ragaei. The economic development of the United Arab Emirates. London: Routledge, Taylor and Francis Group, 2015. Print.
Young, Karen E. The political economy of energy, finance and security in the United Arab Emirates: Between the Majilis and the market. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, 2014. Print.
Gorgenländer, Viktor. A strategic analysis of the construction industry in the United Arab Emirates opportunities and threats in the construction business. Hamburg: Diplomica- Verl, 2010. Print.
