The recently released 2009 Human Development Report confirms the presence of a wide gap amongst Gulf Cooperation Council (GCC) countries with regards to rankings on human development index (HDI).
The United Nations Development Programme (UNDP) issues the annual report.
Kuwait and Saudi Arabia received worldwide positions of 31 and 59 respectively, in turn the best and worst results for GCC states. Rankings of the four GCC countries were as follows: Qatar at 33, the UAE at 35, Bahrain at 39 and Oman at 56.
Countries that are reviewed, this time a total of 182, earn HDI scores with a maximum of 1.000 based on their performance on three variables, namely life expectancy at birth, education and income on purchasing power parity basis (PPP). HDI has earned global recognition for relying on three socio-economic factors rather than solely income.
High ranks
The report ranks Kuwait, Qatar and the UAE amongst very high human development nations and for good reasons. Kuwait's major strength relates to outstanding result on the education variable, as the country enjoys an adult literacy rate of 94.5 per cent. For its part, the UAE stands out in the life expectancy at birth with an average of 77.3 years. With a per capita income of $74,882 per annum (Dh275,416), Qatar is ranked number three worldwide on the income level. Only Liechtenstein and Luxembourg are ranked higher. The report ranks the other three GCC countries in the category of high human development nations.
In reality, GCC states at large stand the chance of improving their global positions on the HDI in the years to come, on the back of sustained efforts to improve education and health services. For instance, Saudi Arabia has allocated 25 per cent of total spending for the fiscal year 2009 on education. An additional 11 per cent was allocated for health.
Likewise, Qatar stands the chance of further improving its global ranking due to investments made in health care services over the next few years in connection with hosting international sporting activities such as the Asian Games in late 2008.
The authorities prepared medical facilities for the tournament but transferred them for general use after the games. Also, education serves as a plus for Qatar on the back of setting up the Educational City.
The purposely-designed project focuses on higher education offered by leading American universities such as Carnegie Mellon and Texas A&M.
Undoubtedly, the GCC's wealth should reflect positively on the rankings achieved on HDI. This is particularly true in the case of Saudi Arabia, the largest oil exporter in the world.
According to BP Statistical Review of World Energy, Saudi Arabia's oil production averaged 10.8 million barrels per day in 2008. To be sure, the kingdom's oil output and proven reserves account for 13 per cent and 21 per cent of the world, respectively.
Energy income
For its part, Qatar is the largest exporter of liquefied natural gas (LNG) in the world. Output stands at some 38 million tonnes of LNG yearly, but is expected to reach 77 million tonnes a year by 2012. Qatar managed to expand its gas business through joint production agreements with international oil firms.
Additionally, international oil firms succeeded in expanding Qatar's oil output over the past few years. According to BP Statistical Review of World Energy, Qatar's oil production doubled within the span of one decade to 1.4 million barrels per day in 2008. Qatar benefited from rising energy prices over the past several years, a matter clearly reflected in the income variable.
GCC authorities should invest energy-generated proceeds on education and health and at the same time ensure fair distribution of wealth.
- The writer is a Member of Parliament in Bahrain.
By Jasim Ali
© Gulf News 2009
