After Seeking a Rescue to Help Cope With

8/12/2019 After Seeking a Rescue to Help Cope With

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PART B

How can an understanding of Senges five disciplines help managers of organisations in the Gulf

states GCC countries deal with the challenges resulting from the 2008 global crisis !our

answer should be illustrated with relevant e"amples#

Word Limit 2000 words exclude references: $%0& of mar's(

v )o chose one or two involved challenges to tal' about the issue* and to lin'ed these

challenges to Senges +ive ,isciplines#

v )o tell about these challenges

v )o tell about Senges

v -ppl. the five disciplines to the challenges

v Clear/comprehensible conclusion from above# and ma'e sure .ou -1S34 the 5uestion

Senges +ive ,isciplines6

v S.stems )hin'ing

v 7ersonal aster.

v ental odels

v )eam 9earning

v Shared :ision


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Senges Five Disciplines in Gulf States Crisis

Gulf States include;ahrain< =atar< Saudi -rabia< >uwait< ?man< and the @nited -rab3mirates @-3< are famous for worlds largest collection of oil reserves and lu"urious life st.les

of their natives# ,uring the financial crisis 2008< the. have faced a totall. different realit.< as

the. have effected to a large e"tent< but not their financial mar'ets did not crash because of the

cushion of oil wealth also due to prudent financial econometrics< another main cause is that oil

e"porters in the region can depict upon their huge energ. reserves# However< as the worldwide

recession has intensified< these countries have faced fewer options for e"ports< direct foreign

investment< travel and tourism< and foreign remittances#

Gulf Countries represent a different range of economic s.stems and development

levels< which largel. depend upon various foreign inflows# an. of these countries are better

integrated with world financial mar'ets as their investment is largel. in western capital mar'ets#

Global Financial Crisis & Gulf States

-s global capital providers< these states remain much less effected to a diminishing

global financial resources hub than net finance debtors< as the. can simpl. hold outflows for

little while to recapitaliAe their financial structures# -s the large portion of wealth is controlled

b. the GCC monarchies< large sums of cash flow which preliminar. goes into government

treasur.# )his would help the GCC states to maintain a budget surplus#

4egional anal.sis show that iddle 3ast growth would sluggish in 200B to 2# percent

from D#E percent in 2008< before recuperating in 20F0 to about %# percent< as 22 countries of the

region would be affected b. the global crisis in different wa.s# +or instance< iddle 3asts oil*


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e"porters in gulf countries are anticipating the impact in sharp fall in oil prices and the stringent

credit conditions# here as in other parts of the world the oil importers also face slowdown in

their trading partners include 3urope< @S< and Gulf Cooperation Council $GCC( countries< which

has resulted in decline in oil revenues to gulf countries# )ourism activities and foreign

remittances are also affected to a large e"tent< though indirectl. but to a significant volume#

Unique callenges to Gulf !cono"ies

Gulf states especiall. @-3 faces a decelerate loan growth and real estate developments

in global financial crisis< in spite of their budget surpluses and being a net capital e"portersuwait

stands to gain from the decline of ranian influence in the region< in terms of limiting both the

influence of its own Shiite minorities and rans entrenchment in neighboring ra5# >uwaits

foreign polic. goals are thus in line with Saudi -rabias< and >uwait will follow the Saudi lead#

-bu ,habi< the largest emirate of the @-3< is the wealthiest and most tightl. run ship in the

countr.# )he @-3s problems lie in ,ubai and its e"cessive real estate boom of the past decade#

,ubais financial indiscretions have put it in a position where it will need to be underwritten $to a


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certain e"tent( b. -bu ,habi# )his presents a strategic opportunit. for -bu ,habi to rein in the

political power and e"cesses of the al*a'toum famil.< which rules ,ubai and holds the @-3

prime ministerial post# ,ubai has so far remained staunchl. uninterested in -bu ,habis offers of

aid< declaring that there are no negotiations between the emirates#

)hough =atar has found itself mildl. vulnerable to the international financial crisis because of its

large debt burden< it is still in a reasonabl. safe financial position# =atars regional and global

goals are 5uite ambitious< as it see's to increase its holdings overseas and serve as a diplomatic

hub for the iddle 3ast# =atar has alread. made moves toward ac5uiring maor sta'es in

companies overseas N including Citiban' N and these 'inds of activities will li'el. continue#

+or =atar< the danger ma. be in overe"tending itself in a time of depressed mar'ets and

relativel. little competition#

+or ;ahrain and ?man< the smallest of the GCC states< their abilit. to ta'e advantage of the

financial crisis is relativel. limited# ;ahrain is constrained b. domestic political factors as it

see's to balance the needs of active opposition elements with its economic outloo'# )his will

limit ;ahrains abilit. to use the economic crisis as a stepping*stone toward a larger geopolitical

role in the region# ?man< for its part< maintains a ver. low profile in the region and is ver.

unli'el. to ma'e an. moves at this time#

+or all of the GCC states< the global slowdown offers investment opportunities the world over#

?n the political stage< the estern states are cr.ing out for capital inections as their economies

slow down# n fact< on a tour of the region< ,eput. @#S# )reasur. Secretar. 4obert >immitt

called on the 7ersian Gulf -rab states to continue investing in the @nited States to help restore


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financial stabilit.# )his represents an e"cellent opportunit. for GCC states to charge to the rescue

N with heft. e"pectations for future cooperation< of course#

)he @nited >ingdom has also as'ed the GCC states to help the nternational onetar. +und

$+( assist countries in desperate need of a bailout# Herein lies an opportunit. for the GCC

states to engage in long*term financial positioning# ;. giving mone. to the +< the GCC states

could enhance their sa. in the affairs of the lending institution and< b. e"tension< in the

geopolitical arena#

+or the moment< however< the GCC states have not responded enthusiasticall. to these pleas

$although Saudi 7rince alid bin )alal did announce that he would boost his sta'e in Citiban'

ust da.s before a @#S#*announced government bailout of the compan.(# Countries li'e Saudi

-rabia and >uwait $which have other options and a variet. of needs to balance( see onl. limited

direct political benefit from bailing out the est instead of investing that mone. at home# )his is

an outloo' that could change once the new @#S# administration is up and running and able to

ma'e political deals and securit. guarantees#

-s these openings demonstrate< the GCC states are among few in the world that can view the

current crisis and see potential opportunities# hile there will certainl. be bumps in the road as

these relativel. .oung economies settle and shift in the face of a turbulent world econom.

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After Seeking a Rescue to Help Cope With