Case study— THE IMPACT OF THE OIL CRISIS ON SECURITY AND FOREIGN POLICY IN GCC COUNTRIES Given the fact that there is considerable diversity in the sources of oil as the energy needed by the world, and the fact that the United States, which is one of the largest consumers of energy from hydrocarbon, has become a significant producer of oil with technological development, it is likely that the current low oil price and volatility will continue for a considerable amount of time (Krauss 2016: 1). This volatility and low price are likely to continue to adversely affect GCC countries given their high dependence on oil and gas for government budgets. GCC countries in dealing with their foreign and security policies going forward during the current and future periods of oil price falls and volatility: Economic diversification that reduces overdependence on high oil prices is likely to support a GCC socio-economic and political future by ensuring that the oil price does not have a stranglehold on the policies developed by these countries. Given that the oil price is determined by global supply and demand activities, GCC countries do not have control over the price of the commodity that they depend on. Callen et al. (2014) argue that while diversification from oil is very challenging, it is one way in which GCC countries can ensure that there is a reduction in exposure to global oil price volatility and uncertainty. GCC countries need a coordinated approach to foreign and security policies that avoids duplication and saves money from oil revenues for other purposes. Although the Peninsula Shield Force idea has helped to support GCC security, policies must be reviewed so that where possible, GCC foreign and security policies become coordinated, developed, and implemented within each country's boundaries as a sovereign state. As yet a more significant challenge, GCC countries must make considerable changes to the rentier state model that has been sustained by high oil prices embedding unrealistic expectations in these countries' citizens. This would need to be done gradually through education to not adversely affect the internal political and security dynamics of the GCC countries. The uprisings in Tunisia, Egypt, and Bahrain should always serve as a lesson in the consequences of popular discontent that can cause security issues detrimental to all facets of the state. To avoid such discontent, GCC countries would need to ensure that their citizens' distribution of oil wealth in various forms is gradually curtailed without causing disquiet. Despite some similarities, the GCC countries are all different in their economic outlook and oil revenue dependence. To be sure of the specific ways in which each GCC member's security and foreign policies are affected by volatile and low oil prices, there is a need to conduct primary research that provides specific data on how these countries are affected. Source: Fahad Hussain M A Al-Marri| Nov. 2017, Research Paper Published by Arab Center for Research and Policy Studies Questions: 10. Explain how economic diversification reduces the over-dependence of oil resources. 11. What type of approach the GCC countries need to follow to reduce the spill of oil revenue? 12. Explain how the GCC countries can bring changes in unrealistic expectations among the citizens of these countries.