ABSTRACT
The economies of states with small areas and populations, i.e. small states, are vulnerable and highly sensitive to external changes. The oil-producing countries of the Gulf, for example, are heavily dependent upon such uncontrollable external factors as the fluctuating foreign markets for almost all their imports and for the oil they sell abroad. The economic vulnerability discussed above has led to significant fluctuations in the per capita income of the populations in the Gulf region. This income is directly related to the prices and amounts of oil exports, which in turn are dependent upon external conditions. In general, the theories of social science are based on the past experience of the Western world. The foreign policy of such a security community must be based on neutrality and its top priority must be to convince any power pressuring it that its continued neutrality is also advantageous to that power.
