Filling a hole

摘要

For years the six states of the Gulf Cooperation Council (gcc) have showered cash on their citizens in the hope they will not campaign for democracy. But now that oil-the main source of revenue for the Gcc-has dropped to below $50 a barrel, budgets crafted in the days of $100-plus barrels no longer add up. Austerity of sorts beckons. A decade of oil prices seesawing upwards encouraged government largesse on a scale that now looks unsustainable. Lavish spending on social goodies, such as health care, education and fuel subsidies, rose further after the unrest that swept the region from 2010. Add in the cost of prestige projects prized by local potentates and it is easy to see why budgets have required ever-higher oil prices to balance (see chart on previous page).