For the Gulf monarchies, the only long-term solution to lower oil prices is to diversify the economy, which can be done either with or without citizen labour. This column argues that given employers’ preference for foreign labour, the only alternative is to bifurcate the job market, creating enclaves where citizen labour can be used productively. This requires strong state institutions that can impose labour market regulations on businesses.
Michael HerbGeorgia State University
Michael Herb is a Professor at the Middle East Studies Center, Georgia State University. His research focuses on the Gulf monarchies, including Kuwait and he writes on the political development of monarchical regimes, the resource curse and Gulf politics. He obtained his received his Ph.D. from UCLA in 1997 and joined the political science department at Georgia State University in 1998.