Resisting the Curse: The Success of the Family-Managed States in the Gulf Cooperation Council

Abstract The countries of the Gulf Cooperation Council boast a rich resource endowment while having a very special governance structure, which is more reminiscent of the management of a family business than a state’s government. In that context, it can be asked which consequences one can expect not only from the institutional environment of these countries but also from this rich resource endowment—which is discussed in the literature as being more of a curse than a blessing—for economic performance. This chapter contributes to the ongoing debate by discussing these countries as being “family-owned” by ruling families. We assume this unique governance structure, combined with a large resource-based public income, to change how policies are being made, and to account for the high overall economic performance and superior anti-crisis reaction capabilities of these countries, outperforming their counterparts in other emerging regions.