The uprisings in the Middle East and Gulf in recent weeks highlight the fundamental flaws and long-term instability of the rentier state model. The model is an authoritarian and paternalistic one where, in the case of the Middle East and Gulf, oil-rich governments provide most of the jobs in the country through secure public sector employment. They pay employees high salaries and generous benefits from their hydrocarbon revenues, which keeps their population 'on-side', limiting their demands for greater rights and inclusivity. However, this role, "dispenser of wealth and privilege",also invites the "bad habits" of corruption, informality, lack of transparency and inefficiencies.
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However, what most Gulf countries have not yet done is to develop an infrastructure that supports smooth transition from education into employment for young people; they have not addressed the high wage differential between public and private sector jobs - a public sector worker in the UAE can earn between 170 per cent and 400 per cent more money that a private sector worker; nor have they recognised that young people in these countries, many of whom have studied abroad or at international universities at home, have greater demands and aspirations than previous generations. Many young people are the first in their families to attend university, many - including women - are putting off marriage for later in life, opting to study and have careers first. Full story...
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However, what most Gulf countries have not yet done is to develop an infrastructure that supports smooth transition from education into employment for young people; they have not addressed the high wage differential between public and private sector jobs - a public sector worker in the UAE can earn between 170 per cent and 400 per cent more money that a private sector worker; nor have they recognised that young people in these countries, many of whom have studied abroad or at international universities at home, have greater demands and aspirations than previous generations. Many young people are the first in their families to attend university, many - including women - are putting off marriage for later in life, opting to study and have careers first. Full story...
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