Organization of Islamic Cooperation
The Republic of Azerbaijan
Topic 2: Responding to the Drop in Worldwide Oil Prices - White Paper
Though it is difficult to admit, the Middle East and the Organization of Islamic Cooperation have become dependent on the revenue brought in by oil reserves throughout the area. In the face of an enormous drop in price, it is imperative that the committee reach a cooperative and comprehensive plan regarding the future of the oil industry in the Middle East, or the entire region will suffer from the consequences of inaction.
Furthermore, it is imperative that the Middle East and the OIC work together to improve upon this issue, as in all economic situations, power generally rests with the larger unions and groups. Should this committee decide to be a divided region regarding the prices of crude oil, there will be victory for none, for even those nations for whom low oil prices may serve now, for they have the built up reserves to sustain such a low priced system, as Iran does, the supply will soon deplete, as oil is not an unlimited nor easily attainable resource, and they will thence be plunged into an economic crisis just as many countries currently are.
To have an unregulated system of pricing for oil between countries is to put the power into the hands of the buyers, generally the powers of the western world. Those who seek to purchase oil need only then turn to the country which offers the lowest price until they can no longer support such a rapid and low income export of oil. Buyers will then seek oil elsewhere, repeating the same cycle, essentially wreaking economic destruction on any country that they turn to, but disguising it as a blessing and a welcome chance for revenue.
Thus, the Republic of Azerbaijan suggests that this committee create a regulated system for the pricing of oil in this region, and to subsequently ensure that the oil prices are then homogenized throughout the region. This stabilization of prices will then transfer the power from the hands of the buyers to the sellers, and therefore allow this union to raise prices as it sees fit. Additionally, as the economies stabilized with this new oil pricing system, the countries of the Middle East will be able to devote more time and resources to the diversification of their economies, and the reinforcing of their economic infrastructure.