Qatari Reliance on Petroleum

Your Essay Question:The Qatari government is becoming concerned that Qatari national income has come to rely too heavily on the revenue received from the export of Qatari petroleum-based products. Consequently, the government has asked you, as its Chief Economic Advisor, to write an argument for and against Qatari reliance on petroleum-based exports and, importantly, to provide your opinion as to whether reliance on petroleum-based exports is good for the Qatari economy in the long run or not.Your argument will be written as an academic essay must be 2000 words (- or +10%).(Excluding Executive Summary, references & Bibliography, and appendices)What structure should my essay follow? Your essay will follow the following structure:➢ Cover page.➢ Table of contents➢ Executive summary (Abstract)➢ Introduction. Briefly highlight the points that your essay will make (always a good idea to write your introduction last rather than first)➢ Economic arguments for and against.➢ Conclusion. This is where you provide your advice to the Qatari government that is based on your for and against arguments.➢ Recommendations and suggestions➢ References and bibliography➢ Appendices if anyWhat should your essay contain?Your essay will contain economic arguments for and against that, on balance, will underpin the advice that you will give to the Qatari government. The following list is not exhaustive, and you are invited to introduce your own ideas rather than relying solely on the ideas that are given here.Arguments for Qatari reliance on petroleum-based exports➢ The Qatari economy is doing well right now.➢ No need to impose unpopular taxation on the population.➢ Qatari government can provide ‘free’ public goods for ever.➢ Petroleum revenue will always pay Qatari bills.➢ The riyal/US dollar exchange rate arrangement is stable.➢ The global economy will always need Qatari petroleumbased products – demand is relatively inelastic.➢ etc. etc. etc. Add your own idea(s)Arguments against Qatari reliance on petroleum-based exports➢ Petroleum-based products run out.➢ Petroleum-based products become too expensive to extract.➢ New Petroleum-based products discovered in another country.➢ Cheaper petroleum-based products discovered in another country.➢ Global recession➢ Customer recession➢ War➢ COVID-19➢ etc. etc. etc. Add your own idea(s)You cannot possibly cover all these points in detail in such a short essay. So, just focus on enough points that will allow you to provide the balanced advice for which you have been asked.

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