Professor O’Donnell mentioned credit crunches in Bahrain in class the other day. Here is an interesting article about how the credit crunch in Bahrain effected the economic growth of the country and actually caused many private and state run projects within the country to be cancelled. Clearly, the protests this year will cause the economy to decline further.
As was mentioned in an earlier post, the Bahraini government was forced to sell a large Islamic bomb in order to make ends meet with its budget deficit. Bahraini tourism also dropped 80% over the past year. These factors, with already high unemployment with the country, will make it harder for the regime to appease its citizens.