Iraq's invasion of Kuwait marked a major watershed in the modern history of the Middle East with consequences that are likely to affect the whole region for decades to come. But nowhere has the impact of the Gulf War been more immediately and profoundly felt than among the member states of the Gulf Co-operation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Individually and collectively these states face major challenges in the new post war environment. How can a stable regional system capable of withstanding shifts in the local balance of power and changes in the Arab and international environment be constructed? How can local defence capabilities be strengthened? And what are the long term economic strategies that will enable the GCC countries to use their oil wealth to build stable, healthy growth on a diversified economic base?
Part 1 Major foreign policy issues: overview; relations with Iran; relations with Iraq; relations with the US; the Arab environment; the Arab-Israeli conflict and the Gulf states; inter-GCC relations. Part 2 Major economic issues: oil policy; government finance; regional integration; diversification; public and private sectors; banking and finance; demography and foreign labour; overseas investment; foreign aid; GCC trade. Part 3 Major defence issues: developing local defence capabilities; expanding external military support; defining threats and threat perception.