Major Sustainability Metrics For GCC Countries

Economic Diversification is the Road to Sustainable Development. To ensure future             Sustainability, the GCC countries are working on plans to transform their economies from a single commodity to diversification. For diversification, it is important to distribute the GDP across different sectors. The evaluations for diversification provide innovate metric that policymakers can use to gauge economic diversity. The higher the diversification proportion the more sustainable is the economy. GCC economies are the most concentrated and inadequately diversified. Hydrocarbon-rich nations are not necessarily doomed to poor economic diversification – as shown by the Paragon economies of Norway and to a certain extent Canada.

Employment distribution should be equitable in GCC countries and transformation economies must move away for low-value-added sectors in the GCC economies. High economic concentration will expose GCC economies to external or exogenous events like changes in oil prices, which creates economic unpredictability. Complete instability and subsequent overflow effects can be offset by the successful expansion and diversification of high-value-added exports. Policy makers must ensure economic diversification when making plans for economic development and must monitor its progression very strictly to assess the success of their policies.

The will reduce instability and improve performance because of diversification in the economy. Patronize the development of the private sector by encouraging exports of high value-added goods and services all over the world. Boost productivity and encourage competition in industries. It should also include its stake in improving human and financial resources and technology and knowledge to encourage innovation. This will help the GCC economies to create better value and prepare the ground for transforming the economy from a single commodity dependency. However, relying too much on innovation, in the beginning, will reduce chances of success and expose a fledgling economy to damaging and disrupting the competition.

Use the economics of diversification and economic sustainability as goals to be achieved when creating policies. Keep an eye on and devise clear diversification strategies and mechanisms to alleviate economic instability and overflow factors, uncertainty, and disconcerted business cycle for the process of change. These steps will help policymakers create long-term, sustainable growth in their economies – to help ensure stability and a high standard of living for the GCC countries. The larger the population in GCC states, both locals and immigrants the worse is the sustainability effort. These and many other questions need to assessed and answered for these countries to take measures that will affect sustainability measures in the very near future