Money, Markets, and Monarchies: The Gulf Cooperation Council and the Political Economy of the Contemporary Middle East

Author(s):  
Rosie Bsheer
Author(s):  
Ilya Gridneff

This chapter argues that the charcoal trade exposes Somalia’s political economy as a driver of persistent conflict fueled by competing local, regional, and international interests. Of particular note is the tendency of Gulf Cooperation Council (GCC) states to buy Somalia’s charcoal, whether licit or illicit, for domestic use: such commercial activity contributes to the country’s regressive imbalances. At the same time, GCC states jockeying for geopolitical influence across the Horn of Africa increases the uneven spread of resources and access to finance for Somalia’s leaders. This process has fed the political elite’s insatiable appetite for personal patronage and has produced a nexus of competing rivalries that further destabilizes Somalia and the broader Red Sea region. This chapter studies the use of one natural resource, charcoal, and its trans-boundary trade as a vehicle to illustrate how Somalia’s ties to the GCC states—and the broader Islamic or Arab world—are being strengthened. The chapter concludes that this growing proximity is both offering beneficial forms of assistance and support, as well as proving to be a factor for destabilization at a time when Somalia is becoming of increasing strategic concern for Western and emerging powers.


Author(s):  
Giacomo Luciani

This chapter looks at the role of oil in the political economy and the international relations of the Middle East. Oil is commonly considered a political commodity. Because of its pivotal importance as a primary source of energy, governments are concerned with its continued availability and seek to minimize import dependence. Historically, interest in oil — especially in the United Kingdom and the United States — strongly influenced attitudes towards the Middle East and the formation of the state system in the region, following the collapse of the Ottoman Empire. Oil also affects the power balance within the region. The polarization in the region between oil-rich and oil-poor states is thus an essential tool of analysis. The parallel distinction between rentier and non-rentier states helps to explain how oil affects the domestic political development of the oil-rich states and influences their regional relations.


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