Over the years many analysts have linked the price of oil with the degree to which Gulf states seem willing to reform. When oil prices are high Gulf governments might give some lip-service to “reform”, but in general squeaky wheels are bought off and few significant changes are instituted. When oil prices dip, the fundamental structural flaws in the local economies start to be scrutinized more closely and reforms gain momentum. Similarly, moves towards “Saudization” or similar movements to replace foreign workers tend to be be inverse with oil prices. Although a bit paternalistic, the conventional wisdom was that the pain of low oil prices was “good” for the Gulf states.

Over the last few years there was a hope that the sporadic attempts at reform would gain a greater degree of continuity by large investments in academic and research institutions, which would continue even when gas prices were high. While petro-dollars in the past had been spent on infrastructure, lost to graft or wasted a new emphasis, more recently oil revenues had built impressive glitzy campuses of American and European Universities. While the concept, if not the execution, was admirable the funding models of these schools was based on large endowments and predicated on healthy revenues from the stock market. As you can imagine that ain’t workin’ out too well these days. It looks like the George Mason University campus in Ras al Khaymah is the first casualty and GMU will be pulling out of the venture before graduating a single student. I hope this encourages American and European provosts with Gulf dinars in their eyes to tap the brakes on their rush to hastily establish new campuses in the region. Seems to me that there needs to be some evidence of proof-of-concept and that many of these universities would do better working together rather than reinventing the wheel (although even that has not been enough for Education City). I would rather have a few viable and healthy schools than a string of failures. Stay tuned…

Related posts:

1. Keeping Hope Alive in The Gulf
2. The Tent Of Palestinian Unity
3. The Oil Parade
4. Guess Who’s Back?
5. I guess you can’t control everything…