Social, Political And Economic Issues In The Persian Gulf And Trade Opportunities For Australia

IntroductionThe situation is also worsened by the autocratic
The relationship between countries in the Persian Gulfsystem prevailing in most countries within the Persian
and that one between the latter countries and otherGulf. Most positions of authority within these
western countries has been marred by tension andcountries are dominated by specific royal families. This
conflicts. Part of the reason for this could be theundermines the will of the people because they are
religious misunderstandings that exist between them.subject to laws passed by those specific countries.
Additionally, countries could be trying to protect theirAdditionally, their political elections are usually
resources. It is no mystery that the Persian Gulf ischaracterized by excess tensions where there is a
fundamental o the world for trading purposes but itbattle for supremacy among varying groups.
also serves as link between other important parts of(Musharraf, 1999)
the world.  For instance, the Gulf is a link betweenThe international world has not closed their eyes to
African and Asia. It also provides a link betweenthe goings on in these countries. This is part of the
parts of Asia and Europe.reason why the US and its allies have conducted
Social issues in the Persian Gulfarms wars within these countries and the most
Recent estimates have shown that the Persian Gulfoutstanding one being Iraq. This outside interference
region has one of the highest population growthhas polarized the Persian Gulf even more because the
rates in the world. Research has shown that majorityheads have turned to countries invading them. Many
of the citizens happen o b the youth. The youth areexperts have argued that the approach being used
a lot that may have certain difficulties in adjusting tocurrently by the international community is
social change within that region. Additionally, there areinappropriate (invasion of the region). They instead
problems with employment and other economicargue for more peaceful resolutions.
crises that may arise out of this youth outburst.Economic issues in the Persian Gulf
Political transformations are also affected by theThe Persian Gulf harbors about sixty seven percent
demographics of the regions. (Kartha, 1999)of all the oil reserves in the world and it is also a
In the year 2007, it was found that the population inknown fact that fossil fuels are the number one fuel
the Persian Gulf stands at 430 million. Researcherssources in the world. One can therefore not ignore
have projected that the population will almost doublethe crucial role that this region’s economy plays
by the year 2050. This means that there is anto the rest of the world. (Mulik, 2003)
overwhelming number of youth currently. Most ofAnother issue facing the countries in the Persian Gulf
them lie between the ages of ten and twenty four.region is their battle with economic depression and
A similar survey found that a third of the populationhigh inflation rates.  Those considering doing business
lie between the ages listed above. This means thatin these countries may be face with numerous
these youth could continue propagating thechallenges of coping with these influxes.
population. A certain number of issues arise fromOpportunities for trade by Australia
these statistics. First of all, the overwhelmingThere are about ninety two billion barrels of crude oil
numbers of youth cannot be absorbed by thereserves that are yet to be tapped by the
regions’ employment opportunities. These youthInternational community (including Australia). In Iran, it
need to gain access to training and jobs but thewas found in the year 2006 that there are about six
region cannot provide this.hundred trillion cubic feet of untapped gas reserves
Part of the reason why unemployment is high for thefound there. This country is one of the most
youth is the fact that there are certain prevalentresourceful in the world. Australia needs to take
systems that impede their access to these jobs. Firstadvantage of this by establishment of an oil
and foremost, there are certain institutionalexploration project within that region or Iran
impediments i.e. government entitlements thatspecifically. One must not underestimate the fact
currently exist. Secondly, political instability makes itthat the country under consideration is strategically
difficult to provide jobs for the youth. There is also alocated within the region. It is found between the
high level of mismatch within jobs. Additionally, morePersian Gulf and the Caspian Sea. Therefore Australia
companies tend o recruit foreigners; this is highlightedstands to connect to the rest of the world by
by the fact that about fifty percent of workers inestablishment of exploration rights within the Persian
the Persian Gulf region are foreigners. Therefore theGulf.
countries in the Persian Gulf have to deal with theHowever, in light of all the problems enlisted above,
fact that most of them lack the ability to providethere is a need to incorporate this while establishing a
employment for their youth. (Beaty, 2004)company there. Australian employers wishing to wok
Religion is also another fundamental issue that affectsin the Persian Gulf need to prepare for the politician
the world’s population. This is because theand social problems prevailing in the region. First of all,
Persian Gulf has the highest following of Muslimthe political tensions mean that there are there could
faithful in the world. They have played a role in thebe a lot of risk involved. Entrepreneurs need to
shaping of the world’s history through theirinform their employees before hand of the situation.
religion. This is also topped up by the fact that they(Brig, 1999) They also need to be in constant
have some of the oldest buildings. It should howevercommunication with Australian representatives in the
be noted that despite the fact that the countries inregion so as to evacuate whenever there is need to
the Persian Gulf are predominantly Muslim, there aredo so. Employers need to make sure that they do
also other religions found there and these include;not take sides in the prevailing local tensions so as to
Judaism and Christianity. Most people speak Arabicminimize friction between the two types of
but there are others who speak other languages.communities.
The main problem that has arisen out of theirAustralia should also take advantage of the large
religious demographics is terrorism and religiousyouth population complaining of unemployment.
tensions. The tensions occur as a result of religiousBecause there is a need to recruit skilled personnel,
extremism within the faith. Some followers choose toAustralian employers could provide training
interpret thir holy teachings in a radical manner andopportunities for the local population in order to save
may consider non-adherents as enemies that need toon costs, stimulate goodwill from the locals and to
be eradicated. This is the reason why there areenhance thir economic situation.
numerous terrorist organizations in the Persian GulfConclusion
that have been created with the sole purpose ofThe Persian Gulf has been characterized by numerous
eliminating western countries. These extremist groupscases of political and social clashes. However, this
believe that the US, UK and other western countriesdoes not undermine the economic opportunities
are eroding Muslim traditions and are thereforepresent in those countries. Australia can take
enemies to the Muslim faith. Tensions are not onlyadvantage of their oil reserves to establish oil mining
prevalent between the latter groups but they alsofacilities in those countries. It could also embrace the
exist between the Persian Gulf countries themselves.large youth population in the process of labor
This is because there are factions within the Muslimprovision. This will reduce cost and stimulate growth
faith i.e. the Sunnis and Shiites. These groups havewithin the region.
been fighting one another for years on end and thisReference:
has contributed to the volatile situation prevalent inKartha, T. (1999): Tools of Terror: Light Weapons
the Persian Gulf today. (Ghorban, 2004)and Indian Security; New Delhi: Knowledge World
Political issues in the Persian GulfPublishers
The Political problems facing the countries in theBrig. S. (1999): The Quranic Concept of War; Lahore:
Persian Gulf are linked to the social and economicWajidalis
issues prevailing. Most countries in the Persian GulfMulik, T. (2003): Natural Gas: Imports to Meet Supply
have been categorized as undemocratic. This isGap: The Persian Gulf Survey, p 161
because there is a continuous battle between theGhorban, N. (2004): Middle East Natural Gas Pipeline
Shiite and Sunni factions of their parliament. ForProjects: Myth and Reality; The Iranian Journal of
example, in Iran their parliament is divided on theInternational Affairs, p.649
basis of their religious following. Whenever oneBeaty, J. (2004):  The Outlaw Bank; New York:
faction wins an election, it is common to find that theRandom House
other’s opinions and views will be suppressed atMusharraf, P.
all costs.