Member states of the Gulf Cooperation Council (GCC), led by Bahrain, have declined to offer Iraq an immediate path to membership of the body that carries substantial economical and political clout in the region, but the question needs to be asked, does Iraq really need to be a member of the GCC?

US Defence Secretary Robert Gates proposed the idea in Manama, Bahrain, last weekend. Addressing the Manama Dialogue, Gates suggested that Iraq should be included in regional organizations in order to help bolster its rehabilitation.

“If you look closely at Iraq’s economic and political potential, about what it can offer the Middle East, you will see that it is in everyone’s strategic interests to support the new government and the people of Iraq in whatever way you can.

“Iraq can only play a constructive role in this region if it is on an equal footing diplomatically, which also requires its government to take proactive steps, such as continuing to appoint its own ambassadors,” Gates said.

“Regional engagement also means that Iraq should be included in regional forums for economic and security cooperation, and considered for membership in Middle East organizations,” he added.

This is not the first time that the U.S. has sought to tie Iraq to the GCC, but this latest call comes at a time when violence is low and the economic opportunities on offer are leading the war torn country to be labeled an ‘emerging market’ like its Gulf neighbours. It also comes on the back of the recently signed agreement that will see U.S. force leave the country by the end of 2011, thus removing a significant obstacle to warmer Arab relations with Baghdad. Read More »

Organisations looking to invest in developing countries need to look beyond generic labels such as ‘BRIC’, and the associations made with geographical regions, and should evaluate countries on an individual basis to discover their true value, according to Richard Fenning, CEO, Control Risks Group.

Speaking at the Economist’s Emerging Markets Summit in London, Fenning said that a term that lumps multiple countries into a single group “supposes a kind of homogeneous nature” is not an accurate assessment of the reality on the ground.

But even when investors look past a country’s regional position, the ‘country brand’ - perceptions of a country fuelled by external commentators such as the media, analysts, international bodies - can distort a true analysis of the risks involved.

“We have to stop looking at the world in terms of these various categories: developing economies, BRIC economies and the next level down, and look at them seriously as independent.” Fenning said.

For those organisations willing to take a ground up approach and understand the local climate for themselves, Fenning reasons, opportunities do exist.

Iraq as the ‘phenomenal risk story’ for 2009

Iraq has, for the past five years, dominated Western news coverage with harrowing tales of sectarian strife, mass suicide bombings, and the collapse of social order and public services. Read More »