Oman, a country with a bright economic future, is at risk of being derailed by Iran’s scheme to impose tolls on shipping through the Strait of Hormuz. Despite recent economic reforms and a promising future, Oman has been equivocal about Iran’s plans, which could lead to US economic sanctions or even military action.
Economic Reforms
Oman has made significant progress in recent years, achieving the second-best score improvement in the Heritage Foundation’s Index of Economic Freedom. The country’s economic expansion and strength under the Oman Vision 2040 framework have been impressive, with fiscal consolidation and effective management of public finance helping to reduce the debt level to less than 40% of GDP.
However, Iran’s economy is in a state of disarray, with inflation at around 50% and poverty levels rising dramatically. The country’s GDP per capita is a dismal $3,415, less than half of Oman’s. Iran’s scheme to impose tolls on shipping through the Strait of Hormuz is a state-sponsored blackmail that Oman should not be a part of.
A Better Alternative
Instead of teaming up with Iran, Oman should build on its economic reforms and offer passage through its side of the Strait independent of Iranian threats. This would increase the attractiveness of its ports and make it an integral part of the regional race to establish an alternative infrastructure around the Strait.
Original reporting: Fox News (HLL/CB) — read the source article.
