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The global business crisis 2007 that started in USA has spread its impacts over the world and no countries' economy is spared from its impact. We are aiming to test the willingness of five countries as a case study (Kingdom of Bahrain, Kingdom Saudi Arabia, State of Kuwait, Islamic Republic of Iran, and Republic Turkey) top overcomes the impact of this crisis. We an extensive research study about the economy status before, during and through the process of the recovery from the impacts of the crisis, and conducted two types of questionnaires to gather more information. As a result of our analysis, we found whose countries are actually willing enough to overcome the crisis and who aren't. The countries we listed as unwilling to overcome the crisis should apply new strategies if they want to recover it.

1. Introduction

Everyone nowadays, no matter what are their background, position or level of education have heard about the global business crisis (in which it includes financial and economic crisis), and felt its impacts in different aspects and on different levels.  It became the "talk of the day".  The financial and economic crisis that was initiated in the USA's financial market in 2007 has casted its dark shadows all over the world through the international trade channels. This is because the national systems of almost all countries in the world are interlinked to the USA's market. What made this crisis to become a global phenomenon that is, rapidly and continuously spread from the USA to hit the economy of most countries is the direct link between many currencies to the US dollar. As the US dollar collapsed and hit the rock bottom, it ruthlessly dragged them down along with it.  By observing the US economy, we can see that there are many reasons that are the causes of this crisis. Most of them are related to their strategy; the mistakes in the monetary policy that came from the lack of the global balances and failure of financial regulations (subprime mortgages crisis, where banks encouraged irrational public support for housing investment giving estate loans without pledge).When loaners couldn't fulfill installments due to high interest rates, bankers took over those real estates and attempted to sell them. As this occurred a lot, supply exceeded demand causing huge decreases of prices of estates where the lack of liquidity creating financial crisis led to economic crisis. The global crisis has different levels of effects due to several aspects such as social, educational, financial, economical, political, health and so on. Some of these effects included low economic growth, high unemployment, disrupted international monetary systems, inflation, migration as governments tried to export unemployment elsewhere, etc.  Financial analysts suggested many solutions to overcome this problem, such as: applying real democracy or thorough reform to existing democratic system,  democratize public service and local government, restructure of finance, extend the scope of financial market, create retail financial instruments to provide greater security to customers, re-specialize economies, reduce global imbalances, reduce income concentration, global governance reform and reeducate economists.

A global downturn needs a global response. However, what actually is happening is that suggested and applied individual solutions came from decision makers of the developed countries which are focusing only on their own economics, leaving behind developing countries as victims to this crisis. It is easier for the developed countries to stand back on their feet due to the availability of liquidity, whereas, this is not the case with the developing countries. Our paper focuses on the willingness of five selected countries: Kingdom Of Bahrain, Kingdom Of Saudi Arabia, State of Kuwait, Republic Islamic of Iran, and Republic of Turkey to overcome this crisis. We'll discuss the real steps taken by the governments and decision makers in these countries to conclude how effective these steps are. As a result, we will determine whether each of the selected countries have the ability and willingness to overcome this crisis. The aim of this paper is to point out to decision makers whether the measurements applied in these five countries will help them to recover from this crisis or not and whether the decision makers adapt the right strategies or have to reconsider appropriate solutions.

2. Literature Overview

Starting with a general overview of the Middle East impact, we see that the global financial and economic crisis has different levels of negative effects over some specific regions; the Arab region probably is one of the most badly exposed to its negative impacts. Even among this region itself, this can be divided into several groups according to their economic and financial situations. We can say that there is the oil producing countries group; it's the group that has the highest GDP and the lowest unemployment rate, in which Bahrain, Kuwait and Saudi Arabia belong to. Such countries got strongly hit by the crisis since they rely on the overseas investments, especially with the US and Europe (Drine, 2009).  The fall was severe for such countries since OPEC's price of oil dropped down from $130 per barrel to $40 per barrel (Rivlin, 2009). This is one of the factors that had led to huge damages that we are going to discuss through this chapter; discussing the impact and reaction of the Global Crisis 2008 over Bahrain, Kuwait, and Saudi Arabia from the GCC. In addition to that, we are going to discuss the impacts and reactions of Turkey and Iran, in which Iran belong to the Middle East countries, but Turkey doesn't, but geographically, its located so close to it. For each country, we cover the situation before, as the occurrence of the crisis and then their attempts to overcome it according to points of view of different economists.

Beginning with our own, the Kingdom Of Bahrain, we see that in the past 30 years, it has built its reputation as a financial services region hub (Ford, 2009). It proved to be more liable to the global banking finance in the region, about ¼ of its GDP comes from the financial sector. 124 banks are established in Bahrain; 24 retail banks, 64 wholesale banks and 26 Islamic banks - predominately investment banks. The blooming of Islamic banking is due to CBB's - Central Bank of Bahrain - which it placed much time and effort to attract new banks and firms, especially the Islamic banks (Matthew, 2009). Like most countries of the world, if not all, situations differed after it got struck by the crisis. As in October 9th 2008, the Prime Minister of Bahrain assured his highness King Hamad Bin Essa Al-Khalifa that the economy of Bahrain was safe because of the sound and clean financial and economic policies adopted by the government of Bahrain (IANS, 2008). However, this is not really the case as it showed later; some problems began to emerge as the result of getting hit by the crisis. Back in October 2008, about $2 billion loss was announced by GIB and ABC banks combined losses from investment that hit the subprime, which meant that Bahrain is one of the most exposed to the subprime assets (Matthew, 2009). In addition to that, Bahrain's stock exchange closed down 2.70%, even though it is the least affected percentage among the key Gulf bourses. Some of Bahrain's leading banks ( such as Investcorp - that is listed by both London and Bahrain- got badly hit, it suffered a net loss of %511 million for 6 months at the end of Dec 2008). Lack of confidence was another problem; Rasheed Al-Maaraj (the governor of CBB - Central bank of Bahrain-) stated that "a lot of Banks have reported their results and we are confident about the quality of the banks, we do not see any problems yet on their loan profiles. Things have changed dramatically and one of the biggest changes, not only in Bahrain, but in the GCC and across global lack of confidence". Also, Bahrain got hit by the credit crisis not just in the banking sector, huge projects were delayed, such as 'Al Dur Power and Water project" which was by GIS and KFH due to lack of finance, resulting in $2 billion losses (Ford, 2009).  As a natural response of any healthy business environment, the right thing to do is to find resolve those problems and overcome such obstacles. The government of Bahrain and CBB has introduced many measurements to minimize the downturn impact of the crisis. CBB has established a reform plan; it acted like a regulator to make series changes, and it seek to promote the country as an investment destination. Islamic Banking sector is a proposed key solution; this was highlighted by "the Banker Magazine" survey, which found that Bahrain has the biggest Islamic institutions in the world after the investment Dar of Kuwait (Ithmaar Bank, Arcapita Bank, Gulf Finance House and Islamic Company of the Gulf). (Ford, 2009).  In order to solve the "lack of Confidence" issue, the CBB aimed to offset the impact of capital outflows on liquidity by setting a scheme to allow banks to exchange their currency from US$ to Bahraini Dinars. However, this is not fully resolved since the Bahraini Dinar is linked to the US$. Sheikh Mohammed bin Essa Al-Khalifa (CEO of the Economic Developed funds) stated that "The Major real estate development in Bahrain has been largely backed by Islamic banks and have not suffered from the most part of the credit crunch." In order to improve the credit flows, the banking sector was reformed and redesigned. CBB got involved with many investments and the creation of Islamic banks has increased their economical strength and power regarding their sustainability in long terms. (Matthew, 2009). So far, economists seem to be satisfied by the current economic situation in Bahrain.

Moving to the west; to Bahrain's good neighbor, Kingdom Of Saudi Arabia. In general, the Arab countries have 20% of the whole world's gas and oil, however, they are accounted for less than 5% of the world's total exports of fuel (Rivlin, 2009).  The Kingdom of Saudi Arabia is one of the key oil producing Arab countries; it got blessed by and the economy bloomed after the discovery and production of oil, in which it started to have many huge investment and cash rich companies. As the crisis occurred and hit KSA in its way along with everyone else, the world witnessed a significant dropdown of oil prices, KSA had reduced their productions which led to affecting its oil revenue. This could mean the end of the current surpluses during the recent years. It also affected doing businesses with foreign companies that started to cost more and are no longer easily available as they used to be before the crisis. This had slowed down Saudi Arabia's economic growth; caused delaying projects, and resulted in the lack of confidence. In addition to that, long term policy issues in banking sector appeared; interbank rates had moved up sharply. Also, the stock markets have lost their attraction. Their %GDP had dropped from 28.4 in 2006 down to 24.9 in 2007. Their government's budget went under pressure, and noticeable inflation has appeared (Bourland, 2008). Apparently Saudi Arabia's economy is relatively in a good shape, even after it got hit by the crisis and could easily adapt to the situation since they know what they should do, and  what are they going to apply. Mohammed Al-Jasser - SAMA's governor- stated that: "Our stimulus is mostly for oil production capacity enhancement and also large development projects we're implementing. When the projects are finished, then we will reassess the need for additional spending". (Kuwait Times, 2009). SAMA- Saudi Arabia Monetary Agency- had lowered the repo rate and injected liquidity into the banks. One of the Saudi Arabia's economical goals is based on completely shifting its focus of economic policy from controlling inflation to restoring confidence in the financial sector. Many companies in KSA are cash rich; thanks to their huge stock of assets, the government of KSA has an advantage over most countries in alleviating the impacts of extreme financial pressures caused by the crisis. The non-oil sector still has a chance for momentum growing, and thus, many projects can be carried out in spite of the existence of some obstacles. That caused, mainly, the limitation of access to higher costs that somewhat slows down the growth of private sectors than it was expected to be (Bourland, 2008). Also, KSA smartly had invested in large numbers in some upstream hydrocarbon projects to get more value from their oil. However, rather than completely relying their energy demands over oil and gas, they had investments in alternative energies so they can export more fuel (Rivlin, 2009).  Thus, based on that, we may assume that KSA's economy is in pretty good shape.

Going up to the north, there resides the State of Kuwait that once announced a five year's $130 billion in an ambitious plan to grow its banking sector to be one of the financial centers in the GCC region before the business tragedy. However, lack of lucidity due to the global crisis, dramatic decrease of oil prices and having a rather poor business environment keeps Kuwait behind its rivals (which Bahrain is one of them). The banking sector in Kuwait has grown largely over the recent years, in which it increased from 2.3% of their nominal GDP in the late 80's to 11.8% GDP in 2007 (which is small compared to Bahrain). Kuwait relied on the high prices of Oil before the crisis occurred to rebus the private and public sector growth (BMI, 2008). The situation started to get bad once the crisis occurred. In 2008, as the global crisis occurred, Kuwait's banking sector fell down to 8.2%. The economy of Kuwait suffered and became under pressure, and the crisis raised interbank interest rates, where the Central Bank of Kuwait considered this as a liquidity injection into a system. There have also been real estate curbs. (BMI, 2008). Kuwait's Gulf Bank suffered a total loss of $1.54 Billion during the same year. This forced the governments in the gulf to pump money into banks to salvage them (Drine, 2009). In addition to that, inflation reached 11% on June 2008, which was probably the result of the drop down of oil and commodity prices (EIU, 2008). Unlike the GCC currencies, the Kuwaiti Dinar is not paged to the US Dollar; therefore, due to its quasi-independence monetary policy, it shouldn't be dragged down by the US dollar. Sadly however, this flexibility only exists in theory.  Inflammation remained the same in Kuwait as the rest of the GCC. On Sept 23rd 2008, CBK - Central Bank of Kuwait- stated to the press that they'll undertake the appropriate measures without hesitation. It'll provide necessary liquidity to any local banking institution. However, it didn't boost it much since there was low confidence in economy. It has also raised reserved requirements. The new suggested rule of limiting monthly loan installments from the previous 50% of borrowers' salaries to 40% has controlled inflation. Kuwaiti Authorities tried to deal with inflation by active attempts to cut down the loan growth of late. It also has tried to urge lenders to restrict credit growth. (BMI, 2008). Also, the government institutions such as KIA -Kuwait Investment Agency- and the KPC -Kuwait Petroleum Corporation- in addition to the public Authority for Social security deposited their funds in some local commercial banks rather than holding them at the CBK. (EIU, 2008).  Yet, Is Kuwait going to be successful in overcoming the impact of the crisis? By November 2008, NBK - National Bank of Kuwait - announced a stunning 10.5% raise in 9 months profit, while the KFH (Kuwait Finance House) which is an Islamic Bank  has a 25% increase in profits for the same period of time (EIU, 2008). Although Kuwait seems to have an opportunity in the banking sector and general business environment in the GCC, its three rivals are still ahead of it. It still has to make changes. However, Manaf Al-Hajeri - General Manager of Kuwait's Financial Center "Markaz"- has a different point of view. He sees that within the next 10 years, the Middle East will still be highly attractive to banking investments, direct investments and asset management, thanks to its high sovereign reserves, favorable demographics and high house formations (MARKAZ, 2009). With such a contradiction in different point of views, the best way to get the accurate answer, to whether Kuwait is going to be successful in overcoming the impact of the global crisis is through an intensive field study.

Our next stop resides to the east, The Islamic Republic Iran. Iran is economically isolated from the rest of the world, and thus, many people thought that Iran was secured from the global economic and financial crisis. But that's clearly not the case. The most critical issues that influenced Iran's economy is that it heavily depended on the Oil revenues. As the oil prices searched the peak, Iran's government was supposed to save a part of its income. However, it spent it all on subsidized lending, massive bank credits, imprudent social spending and substation imports. This phenomenon is known as the "Dutch Disease". When the oil prices dropped badly due to the global crisis, Iran suddenly found itself facing a financial crunch. Also, the government of Iran controls more than 80% of its economy due to political reasons after the election of Ahmady Nijad which weakens its economy. In addition to that, the pressures of USA's government and its banks over Iran's and the U.N. Security Council sanctions made the situation even worse. In a healthy economy, the central bank should be independent from the government. However, this is not the current case in Iran, where Nijad's government continues its interference in central bank affairs. (Amir, 2008).  As the crisis occurred, Iran's economy had already suffered from many problems before the global crisis which made it more vulnerable to impacts of the crisis. Iran's banks faced the same problems as its US rivals; they were severely hit by the crisis due to the non-repayment of house loans and that was caused by the decrease of the house prices which turned into the creation of the economic crisis. One of the signs of the impact in Iran is the 60% decrease in applying for constructing license and the complete stagnation in house trading. Abdoh Tabraizi, in a professional conference in Tehran University "The Influence of Global Financial Crisis on Iran Economy" stated that: the problem of the global economy accrued in Iran was due to the decrease in house pricing. So, the people who bought the houses will not make their repayments and this happened because of the increase in food and petroleum prices (BBC, 2009). Due to the high dependency of Iran's economy on oil revenue, it faced lack of liquidity as the oil prices dropped down, and its currency (the Toman) is facing a devaluation against the other currencies (Amir, 2008). The Republic of Iran denied the Global Crisis impacts over its economy and ignored all the economists' warnings regarding its situation. It has no attempts in finding solutions to its current financial and economical situation (Amir, 2009).

Leaving west to Europe, to the Republic of Turkey, where it actually faced an interesting event before the global crisis. In the years between 1990 and 2002, Turkey had experienced some very series crisis's that it had to confirm the Global crisis in 2007 through the stability of macroeconomic policies, structural reforms, social security reforms and employment packages that strengthen the financial sector giving it nowadays a strong economic structure compared to the past that could easily resist the impacts of the current global crisis. It had taken its lessons from the past and enabled them to be prepared for the global crisis. Therefore, since the first moment for the global crisis 2008 begins, it didn't touch Turkey very seriously. Turkey's banks didn't fail; all of the banks in Turkey could sustain themselves without any external support (Erdogan, 2009). As it got hit by the crisis from the day of 10 July 2007, in which it is the exact moment of the beginning of the crisis had affected Turkey seriously and until now it is still affecting it. Turkish currency showed the most resistance to the falling values comparing to the other currencies. It decreased only by 28% compared to the other currencies (e.g. 31%  Mexican Peso &  Russian Ruble, 45% South Korean Won, 34% South African Rand, 40% UK ₤ ). (Erdogan, 2009). In other words, as Ayse Yuksel stated in an interview, Turkey is in a rather great shape compared to the USA, Europe and England itself, also had way less damage in funds and mortgages compared to the USA (Sakar, 2009).  As for the banking sector, instead of becoming a problem like other countries, it became a security value due to its previous experience (Erdogan, 2009).  Turkey had taken many steps to overcome the global crisis; mainly to prevent the liquidity problem. For example, the Turkish Central bank had taken decisions in order to support the markets and the internal demand through the implementation of the monetary policy; they took measurements to re-function the credit change in the economy. In addition to implementing temporarily tax reductions in certain sectors such as housing, automotive, electronics, etc, Turkey was able to successfully protect its employees. (Erdogan, 2009). Turkey had announced that there were no problems existed and no actions are warranted; and if were needed, it can inject liquidity into the market and attract the funds held by its citizens overseas account back to Turkey, that is, providing forging currency liquidity (Hurriyet Daily News, 2009).

3. Methodology

The purpose of our paper is to determine the willingness and ability of decision makers in our selected five developing Middle Eastern countries to overcome the ongoing economic crisis. According to the nature of our research, we will follow two approaches for collecting the information needed for this research paper. We are going to distribute two types of questionnaires, one for decision makers (type 1) and the other for the public (type 2). Our target population will be selected from Bahrain and we will use quota sampling method of size 170 (70 for type 1 and 100 for type 2). The period for the distribution of the questionnaire will start from the month of November to December 2009. Also we will do an interview with a Bahraini decision maker. Secondly, We will gather information by conducting extensive studying of existing papers, journals and articles regarding our topic; analyzing and comparing all together to reach proper conclusions based on facts and numbers

In Type 1 questionnaire, we will include questions in which we can extract from how the decision makers feel about the crisis and what are they going to do to overcome the crisis. And as for Type 2, we will include questions in which we can extract from how the public feel about the crisis and how they are affected by it; how they are going to measure the steps followed by the decision makers in their countries to overcome the crisis. In the two types, we will use quantitative and qualitative questions (from both types distributed) to get needed information to meet our goal. After distributing the questionnaire and analyzing the results using MS-Excel in addition to SPSS software, we will measure how the decision makers reacted towards the global economic crisis are. We have also collected further information by conducting an interview with one of the decision makers in Bahrain who works for a financial sector.

4. Challenges

The most significant event in this decade is the Global Economic and Financial Crisis 2008, where no country was spared from its brutal hits and negative effects. After this crisis, economists categorized the countries into two main divisions: the rich countries that have the power to withstand the crisis due to having a huge amount of assets that plays the key role in the process of recovering the impacts of the crisis, whereas the other countries which are not rich, thereby considered poor or average countries are the main victims of the crisis in two aspects; firstly they don't have enough assets for their economy to get back to track. Secondly, the solution strategies taken by rich countries to overcome the crisis do not put them in consideration, keeping them the weakest link (Wade,2009), (Meyn et al, 2009).   This catastrophe, adaption to it and the attempts to recover from it, illustrated to the world the true essence of the health of each country's economy. In addition to that, it showed how clever and serious the decision makers and governments are in dealing with it. On the other hand, it also points to intentions of decision makers.  We focused on the willingness of five selected Middle Eastern countries (The Kingdom Of Bahrain, Kingdom Saudi Arabia, State Of Kuwait, Islamic Republic of Iran, Republic of Turkey) how decision makers of these countries and governments are willing to recover from the impact of this economical crisis. What procedures have they taken and how successful will they are. Our selection is based on the different nature and situations of the economy of each of the selected countries, and their different political strategies and views. We spotlighted on the Kingdom of Bahrain in our paper by gathering data from the public and decision makes in Bahrain and conducting an interview with a chosen decision maker in order to obtain most accurate result as possible. In addition to analyzing and comparing the published articles and journals .On the other hand when we consider other countries, we limit our data resources to the existing articles, papers and journals from different    sources to discover the most accurate data that we will build our result on. That's due to time and geographical constraints.  As a result of this paper, we will categorize the selected countries into those who are willing to recover from the crisis and those who are not. Our main audience is the decision makers, who can take benefits of this paper in evaluating their decisions, adapt it, and change it to make better solutions. Also the public can use the result of this paper to know the correct economic situation of their country, and how their governments are honest in announcing the economic state and whether they are serious to recover from this crisis, as a result they may press on their government to make major steps toward making better solutions. Unfortunately, we have a very limited time to complete the paper while such a research requires much longer time for more accurate data collection. We are enforced to submit the paper by the end of December 2009. Also, we can't reach decision makers because they are hard to find in such a short notice. In addition to that, we are limited to do our questionnaire in Bahrain only due to the geographical limitation. We will try to expand the scope of the questionnaire to include the concerned countries using emails, internet and online technology.

5. Proposed Solution

According to the nature of our paper, and the geographical and time constraints, in order to achieve our goal, we will apply two approaches for gathering and analyzing information. The first one will apply to all our selected countries in which it highly depends on comparing and analyzing each countries economists' and decision makers statements to sold facts and numbers, including (GDP growth, Oil GDP growth, PCI inflation) which considered to be the most significant signs of the country economical situation,   from neutral international organizations -including the International Monetary Fund (IMF) -. As for the second approach that involves Bahrain only in which we contacted two types of questionnaires and an interview with a decision maker as an add up to the previous approach.  In order to identify whether the financial and economical situation in a country is recovering from the crisis, there are indicators (are known as Economy Indicators) that show whether it's improving, stable or turning down. Thus, our questionnaire and interview must be based on it. There are many indicators, but we will consider only on the important ones that are applicable to the business and economy to the countries that we elected. Some of the major indicators (Barnes, 2007, Investopedia ULC) include the following: Consumer Confidence Index (CCI): it shows how healthy the financial situation and determines the expenditures of economy by illustrating the spending power and confidences of consumers. Consumer Credit Report: it indicates the future spending over personal levels and it shows the changing amounts of outstanding loans on individuals. This includes (total debts, current annual rate of growth or decline, and total percentage of credit card delinquencies). It is considered as a major factor that helps to make more than the half of the total GDP. Consumer Price Index (CPI): is seen as a guide for inflation. It focuses on products that consumers buy and use on daily basis. CPI reflects the prices of goods in the markets, and it's an important indicator in terms of moving the market and setting the monetary policy. Durable Goods: this involves high priced goods that last for three years, such as machinery, technology manufacturing, cars and other vehicles which indicates general economic expansions.  Employee Cost Index (ECI): it indicates the percentage of changes in employees' salaries, bounces, and benefits in terms of wages per hours. It calculates the total cost of employees for a business. Employment Situation:  this indicates employment and unemployment rate. It's useful to understand the state of labor force.  This indicator could move the market dramatically. Gross Domestic Product (GDP): it's an aggregate measure of the total economic production for a country. It is one of the most important indicators that illustrates the health of economy and, depending on it, prices of good and services are set in a certain country. It involves personal consumption, investments, government expenditures, and the exports in a particular country. Existing Home Sales and Housing Starts: are two indicators that come in conjunctions, and this, illustrates the housing market in general. Those are long term indictors that show how many houses are sold. It deals with construction level, which means it shows also supply needed for it, and it shows the demand of consumers and comes in pretty handy in real estate markets. Money Supply: it is the amount of money floating around the economy and it is available for spending. It is controlled by the Central Bank of the country. Money Supply is based on how liquid the money is, which can directly affect economic growth and inflation. Mutual Funds Flows: this is an important concept in which to understand stocks and bond marketing. Non-Manufacturing activities: they involve service industries, such as telecommunications, in which they provide insight into the business area that may not be covered by other indicators. Product Price Index (PPI): it's an index to the prices measured by the wholesalers, producers, and retailers that are considered the most powerful contributors to the consumer markets. The index comes in three levels: PPI Commodity Index that involves certain commodities such as crude oil; PPI stage of processing (SOP) Index where products are in an intermediate stage; and PPI Industry Index that involves the final stage and finished manufacturing of the products. And finally, there's the Trade Balance Report: it indicates the health of the economy of a country and its relationships with the rest of the world (Barnes, 2007).

Our goal is to get a clear full view of the economy in a country. So, we designed two types of questionnaires, one for aimed for decision makers (type 1) and the other is aimed for the public (type 2), in which both questionnaires are based on economic indicators that we mentioned earlier. For both questionnaires, the methodology is CATI -Computer Aided Telephone Interview-, online form, paper forms, the framework timing is 2 - 21 December 2009, regarding samples, our goal is at least 69 for each type, our sampling method is quota, and our geographical coverage: Kingdom of Bahrain. In Type 1 questionnaire, we included questions in which we can extract from on how the decision makers feel about the crisis and what are they going to do to overcome it. Moreover, it shows the economical status of the crisis. This will give us insights on whether there have been actual measurements and procedures taken to overcome the global financial and economical crisis taken place today. We started by collecting general overview information by asking the decision makers the following questions: 1. you are working at (government, private or Simi private sectors), 2. Your organization's main work is (Finance, Banking and Insurance, Justice and Political, Education, Health, Others), in order to be able to easily categorize the overall result of the questionnaire. 3. Did your organization face financial difficulties before the current global crisis? And 4. If yes, please explain the reasons in which these questions are aimed to show whether the organization's main cause of tumble was the crisis itself, and whether the current crisis was their first experience in facing major troubles. Being exposed to prior financial difficulties and overcome those means that they were probably had some experience in solving and overcoming such a crisis. This was the case with the Republic of Turkey that were in a better financial shape compared to other countries because they already faced a crisis long ago in 2001 (Uslu et al, 2008). 5. How do you describe the percentage of change in your organization's budget from 2007 to 2009 and 6. How do you expect the percentage of change in your organization's budget/money supply in the coming years (2010 - 2012) were such questions that indicated the Money Supply, which is one of the economy indicators. Then, we asked them about their responses to the crisis in case of they had been affected by the global economic and financial crisis. The questions asked were 7. Has your organization easily adapted to the tighter resource constraints? , 8. How did resources reduction affect efficiency of work? And 9. Has your organization narrowed the scope of its work? In order to indicate the level of measurement taken by those organizations. 10. Did your organization reduce the number of staff? And 11. What is the estimated percentage of reduction for narrowed work scope and / or number of staff if any? Were asked to indicate the Employee Situation which is one of the economy indicators. We also asked those 12. Did your organization start additional fund raising activities, 13. If so, please specify and 17. Does your organization need / got support from the government to overcome its situation? And 18. If so, please specify   to indicate the Money Supply, which is one of the economy indicators. 14. Did your organization use technology to reduce their expenses (example, using internet based methods for meeting (such as Skype) instead of traveling or personal meetings, etc), 15. If so, please specify, and 16. Is your organization's responses and strategies to this current situation expected to be sufficient?  To see whether those organizations have taken measurements to make the most efficient use of the liquidity and money supply. Afterwards, we followed it with a section of questions intended to Financial/ Bankers and Insurance organizations to determine their current status after/during the recovery from the crisis in the year 2009. We have asked them to specify whether the following indicators of economy (Consumer Confidence Index, Consumer Credit, Employee Cost Index, Gross Domestic Product trade balance and Liquidity and Money supply) are largely increased, or had a moderate increase, or didn't change, or had a moderate decrease or largely decreased. The result of this section of questions will specify whether such organizations are successfully recovered from the crisis or not.

As for Type 2 questionnaire, we have included questions in which we can extract from on how the public feel about the crisis, and how they are affected by it; how they are going to measure the steps followed by the decision makers in their own countries to overcome the crisis.  Our first category of questions was to describe the financial situation for consumers. First, we have asked them about their nationalities to categorize them according to their country and discard the ones whom belong to countries that were not concerted with. Then, we asked them about their age groups and their level of education to be able to sort them out based on their level of thinking. After that, we asked them about their jobs and income. Are you working in private or government sector and How do you describe your income are founded to easily categorize the outcome of the questionnaire. Then, we asked them: Do you have any financial obligations/problems (such as loans) and Do you have an obligation in which it's hard to fulfill (pay for) its installment since 2009 in order to determine the Consumer Credit, which is one of the economic indicators. Do you think you will need to take a loan / or extra loan in the near future indicates both Consumer Credit and CCI, as for In the near future, are you planning to buy shares in the stock market indicates CCI and Mutual Fund flows. Afterwards, we asked: In your work environment. Are you facing the threat of getting unemployed to determine the Employment Situation Report. Then, in order to measure the ECI, we asked them during the last year at work, did you get promoted? Got an extra bonus? Did Your Salary increased? To determine the Employee Situation, we asked them whether they were planning for one of the following (Change their Job, Migrate to another country alone - for a job -, Migrate to another country with family, Quit their job), where considering migration means that economy situation has hit the rock bottom. We found during our research, according to (Abella et al, 2009) that some works migrate to another countries that are more financially stable and less affected by the impacts of the crisis. Afterwards, we had another category that collects consumers' feedback to indicate the terms inflation and consumer price index (CPI). We asked our target population to rate or describe the increase of prices to the following categories: goods and products (such as food, clothes, etc), electricity and water bills, fuel/oil and services (telecommunications, health, transport, etc). In addition to CPI, the change of prices of services also indicates the non manufacturing report. Our next section of questions had to evaluate the purchasing power of consumers. We did ask them the following questions: Are you planning to purchase a car (or any other vehicle) in the coming 3 years? And in order to determine the term Durable goods, we had to ask them this question: Are you planning to buy/build/change/ refurnish a house in the coming 5 years? And If you are planning to build a house, how long do you think it'll take in order to determine the Existing Home Sales and Housing Starts. Finally, we had included a section of questions in which they aimed to evaluate the government support to the economy. We did ask our targeted population the following questions: Overall, how would you describe the financial and economic situation in your country over the previous 18 months? , How do you describe the impact of the global economic crisis on your country over previous 18 months, how long do you expect the impact to last?, Did your government support any of the following [ Food,  Goods and products, Electricity and water, Fuel / oil, Services (telecommunications, health, transport, etc), Salary, Gives financial support], Overall, how do you describe the level of support, and Is there a need to a new public policy actions and awareness to improve the economic situations in your country? When the public felt satisfied about their economic and financial situation and the help they needed, it meant that the country was actually successful in recovering from the crisis. The willingness of overcoming the crisis can be concluded from the results of those two questionnaires mentioned above.

Questionnaires are not enough to collect the data we want, so we conducted an interview with a supervisor in one of the Bahraini banks (he insisted on keeping his name and the name of the bank confidential). He is working as a supervisor of the L/G section (Letter of Credit). To have an overview about the situation of his bank, we asked him whether his organization faced any financial difficulties before the current global crisis of 2007, he said no. he stated that the budget of his bank is increasing in a normal rate during the last two years, and expected to continue raising. As the economic crisis occurred negatively affecting all banks worldwide, he said that their bank didn't get affected directly, and the problems caused by it are very small. To solve such little problems, they rescheduled some of the relegations and debts without changing their policies and conditions for giving loans, and there was no need to limit their resources. Since they are not hit by the crisis, they are able expand their fund raisings any opening two branches in two different locations in Bahrain, also they are studying to establish more fund raising activities. When we asked him whether his organization are using Information Technology (Internet, Intranet and Extranet) in their business, he answer was absolutely yes, because  their main branch is located overseas; using Skype and virtual meetings for big decision makers instead of traveling in person for conducting such meetings, whereas the local meetings are still happening the traditional way, in addition to highly dependency on the Intranet and Extranet to facilitate the communication between the different departments branches inside Bahrain. We asked him regarding the situation of his bank compared to other banks in the region, he stated that his bank is ranked as level B, meaning that their overall situation is alright; they have 149 branches worldwide. As our source mentioned before, that his bank did not get significantly affected by the global crisis, they are in a very good condition in such that they are capable of solving their own problems without any need from neither the government nor the Central Bank. Also, the bank didn't need to bring any foreign experts or replacing existing ones because they are qualified and have a high sense of responsibility.

6. Results Analysis

In this chapter, we analyzed all data we gathered from questionnaires and references; first, we started b analyzing data we gathered from questionnaire Type 1, perform various statistics tests over it, then we did the same for questionnaire Type 2, we included the charts and tables of the questioners' results in the appendix. We also have included a descriptive analysis Of Type 1 and Type 2 questionnaire in the appendix. Afterwards, we analyzed the information we got from our references.

We  performed a single factor ANOVA test over the outcome of Type 1 questionnaire to determine whether the responses we got are a good fit or not, in other words, whether the results we will reach based on those numbers are acceptable or not. So, by performing the ANOVA single Factor test, where our null hypothesis (H0) -our primary assumption- was having a poor fit against alternate hypothesis (HA) was having a good fit, meaning that our sample size is large enough to get the desired result also the sample data are acceptable, we obtained the following table

ANOVA

Source of Variation

SS

df

MS

F

P-value

F crit

Between Groups

279.039

15

18.603

22.195

0.000

1.679

Within Groups

643.695

768

0.838

Total

922.734

783

-Table 1- ANOVA Test for Type 1 Questionnaire-

The table above proves that out sample is a very good fit and data is accepted based on the P-value of the F that is very tiny (P-value = 0.000) and approaching zero, so the test statistic is significant at that level  - It is a known that whenever P-value gets smaller, the result is more accurate- .  Also, from the F value (22.195 > F0.95,15,∞ = 1.67 "critical value from the F-Distributions tables with alpha .05"), thus, we reject out null hypothesis and accept the alternate one that states that responses in our sample is a good fit. We included the complete ANOVA summary table in the appendix. The next step is to test the regression and correlation of data based on different factors. Regression analysis is used to predict the value of one variable on the basis of other variables, in other words, it can measure the strength of the relationship between different factors. Correlation is a statistical test that finds the whether the relationship between any two variables exists or not. It also illustrates the strength of that relationship based on the absolute value obtained. When the value is positive it indicates a direct relationship between those two variables, whereas if it's negative it indicates an inverse relationship.  As the absolute value increases, so does the strength of the relationship.  We categorized our questions into groups according to the type of information that they measure; they are (Resource Reduction Group, Liquidity and Money Supply Group, crisis Effects Group, government Support Group, GDP & Economic Indicators Group, and Economic Indicators Group). For each group, we performed a regression and correlation test. We started with Resource Reduction Group, where we tested the relationship between adaption to resource reductions against the effects of efficiency of work after reduction, narrowing the work scope of organization, staff number reduction, and additional fund raising activities. The aim of this test is to analyze the organization's adaption to its status within the global crisis. The following table is the result of this test.

ANOVA

df

SS

MS

F

Significance F

Regression

4

1.743

0.436

0.968

0.434

Residual

45

20.257

0.450

Total

49

22.000

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

9.509

2.691

3.533

0.001

4.088

14.930

4.088

14.930

How did resources reduction affect efficiency of work?

0.085

0.100

0.847

0.401

-0.117

0.287

-0.117

0.287

Has your organization narrowed the scope of its work?

0.203

0.154

1.322

0.193

-0.107

0.513

-0.107

0.513

Did your organization reduce the number of staff?

-0.024

0.119

-0.201

0.842

-0.264

0.216

-0.264

0.216

Did your organization start additional fund raising activities?

0.079

0.116

0.681

0.499

-0.155

0.313

-0.155

0.313

-Table 2- Regression Test for Type 1 Questionnaire, group 1-

The table above proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.001) and approaching zero, so the test statistic is significant at that level. Also, from the F value (0.968 < F0.95,4,60 = 2.53 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. Where we concluded that there is an inverse relationship between staff number reduction and the ability to adapt to tight resources, while there is a direct relationship between adaption to tighter resources and efficiency of work, not narrowing the scope of work, additional fund raising activates. We then performed a correlation test, and we found out that there is a direct relationship between the Resource Reduction and the adaption to the tighter resources as it shows in the following table in order to find out whether the organization has actually easily adapted to tighter resources in spite of what they declared.

Resource Reduction

Adaption to the tighter resource constraints

Resource Reduction

1

Adaption to the tighter resource constraints

0.235775177

1

-Table 3- Correlation Test for Type 1 Questionnaire, group 1-

Then we tested the Liquidity and Money Supply Group, where we tested the relationship between liquidity and Money Supply against the percentage of change in the organization's budget from 2007 to 2009, the expected the percentage of change in the organization's budget/money supply in the coming years (2010 - 2012), and the need and the acquirer of support from the government to overcome its situation. The aim of this test is to analyze the organization's liquidity and Money Supply during the global crisis. The following table is the result of this test.

ANOVA

df

SS

MS

F

Significance F

Regression

3

1.718

0.573

0.731

0.538

Residual

48

37.589

0.783

Total

51

39.308

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

10.009

3.003

3.333

0.002

3.971

16.047

3.971

16.047

percentage of change in your organization's budget from 2007 to 2009

-0.007

0.091

-0.081

0.936

-0.191

0.176

-0.191

0.176

Expected percentage of  change in your organization's budget/money supply in the coming years ( 2010  - 2012)

0.148

0.116

1.274

0.209

-0.086

0.382

-0.086

0.382

whether organization need / got support from the government to overcome its situation

0.141

0.152

0.929

0.358

-0.164

0.447

-0.164

0.447

-Table 4- Regression Test for Type 1 Questionnaire, group 2-

The table above proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.002) and approaching zero, so the test statistic is significant at that level. Also, from the F value (0.731 < F0.95,3,120 = 2.68 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. Where we concluded that there is a very slight inverse relationship between liquidity and percentage of budget change. And we found a direct relationship between liquidity and expected percentage of change in the near future, and the need and/or obtaining of government support. From the same table, we can clearly obtain the coefficient of correlations, so there is no need to perform an individual correlation test for this factor. Then we tested the Crisis Effects Group, where we tested the relationship between liquidity and Money Supply against the percentage of change in the organization's budget from 2007 to 2009, the expected the percentage of change in the organization's budget/money supply in the coming years (2010 - 2012), and the need and the acquirer of support from the government to overcome its situation. The aim of this test is to analyze the organization's liquidity and Money Supply during the global crisis. The following table is the result of this test.

ANOVA

df

SS

MS

F

Significance F

Regression

4

7.720

1.930

1.007

0.414

Residual

45

86.280

1.917

Total

49

94

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

15.711

4.658

3.373

9.000

6.330

25.092

6.330

25.092

Has your organization easily adapted to the tighter resource constraints?

-0.588

0.535

-1.099

0.278

-1.666

0.490

-1.666

0.490

How did resources reduction affect efficiency of work?

0.575

0.486

1.181

0.244

-0.405

1.554

-0.405

1.554

Has your organization narrowed the scope of its work?

-0.823

0.711

-1.158

0.253

-2.256

0.609

-2.256

0.609

Did your organization reduce the number of staff?

0.665

0.446

1.490

0.143

-0.234

1.564

-0.234

1.564

-Table 5- Regression Test for Type 1 Questionnaire, group 3-

The table above shows that the F value (1.007 < F0.95,4,60 = 2.53 "critical value from the F-Distributions tables with alpha .05"), thus, accept our sample. However, the P-value is 9.000, which is very large number, so we reject the data obtained from this part of the questionnaire, which means that the decision makers where hiding the accurate information. Next, we test the Government Support Group, we applied a regression static between the sufficiency of the strategies taken by the organizations against the need and acquirer of government support. The aim of this test is to determine the relationship between those two aspects and to determine whether the organizations are honest or not.

ANOVA

df

SS

MS

F

Significance F

Regression

1

19.442

19.442

148.246

0.000

Residual

50

6.558

0.131

Total

51

26.000

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

3.416

0.871

3.923

0.000

1.667

5.165

1.667

5.165

Does your organization need / got support from the government to overcome its situation?

0.748

0.061

12.176

0.000

0.624

0.871

0.624

0.871

-Table 6- Regression Test for Type 1 Questionnaire, group 4-

The table above shows that the F value (148.246 < F0.95,1,60 = 4.00 "critical value from the F-Distributions tables with alpha .05"), thus, reject our sample answers for this group, which means that we need more responses to have a correct results because the existed responses does not show the accurate condition. As a result we don't consider the P-value.

We tested GDP & Economic Indicators Group the, where we tested the relationship between GDP against the other economic indicators that include (CCI, Consumer Credit, ECI, Trade Balance, and Liquidity and Money Supply. The aim of this test is to find the relation between GDP and the other indicators to see wither the organizations gave correct view about their economical situation - in other words to see if there is contradiction in the responses or not- .The following table is the result of this test.

ANOVA

df

SS

MS

F

Significance F

Regression

5

8.748

1.750

4.354

0.003

Residual

37

14.869

0.402

Total

42

23.616

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

4.717

2.539

1.858

0.071

-0.427

9.861

-0.427

9.861

CCI

0.413

0.130

3.170

0.003

0.149

0.677

0.149

0.677

Consumer Credit

-0.211

0.129

-1.642

0.109

-0.472

0.049

-0.472

0.049

ECI

0.056

0.112

0.499

0.621

-0.172

0.284

-0.172

0.284

Trade balance

0.194

0.188

1.029

0.310

-0.188

0.575

-0.188

0.575

Liquidity and Money Supply

0.183

0.113

1.620

0.114

-0.046

0.412

-0.046

0.412

-Table 7- Regression Test for Type 1 Questionnaire, group 5-

The table above proves that data is somehow accepted based on the P-value of the F , however it's not that is very tiny (P-value = 0.071) and its not approaching zero, so the test statistic is not significant at that level. Also, from the F value (4.354 > F0.95,5,40 = 2.45 "critical value from the F-Distributions tables with alpha .05"), thus, we don't accept the results of this test and know that something is wrong, and that decision makers are trying to not reveal some accurate information regarding their status after getting affected by the crisis.

Finally we reach the Economic Indicators Group on which we applied the correlation test between all the indicators to highlight the strength of the relationship between the most important economical indicators - similar to the logic link between them- so our test is acceptable.  The highlights cells in the table below shows a significant relationships

CCI

Consumer Credit

ECI

GDP

Trade balance

Liquidity and Money Supply

CCI

1

Consumer Credit

0.557

1

ECI

0.092

0.246

1

GDP

0.472

0.194

0.050

1

Trade balance

0.205

0.343

-0.011

0.360

1

Liquidity and Money Supply

0.306

0.430

0.027

0.429

0.631

1

-Table 8- Regression Test for Type 1 Questionnaire, group 5-

Thus, we finished statistical analysis tests over type1 questionnaire and then we did the same for type2 questionnaire. We  performed a single factor ANOVA test over the outcome of Type 2 questionnaire to determine whether the responses we got are a good fit or not, in other words, whether the results we will reach based on those numbers are acceptable or not. So, by performing the ANOVA single Factor test, where our null hypothesis (H0) -our primary assumption- was having a poor fit against alternate hypothesis (HA) was having a good fit, meaning that our sample size is large enough to get the desired result also the sample data are acceptable, we obtained the following table

ANOVA

Source of Variation

SS

df

MS

F

P-value

F crit

Between Groups

25260.13

18

1403.341

46.13578

4.8E-129

1.610826

Within Groups

45018.09

1480

30.41763

Total

70278.22

1498

-Table 9- ANOVA Test for Type 2 Questionnaire-

The table above proves that out sample is a very good fit and data is accepted based on the P-value of the F that is very tiny (P-value = 4.8E-129) and approaching zero, so the test statistic is significant at that level  - It is a known that whenever P-value gets smaller, the result is more accurate- .  Also, from the F value (46.13 > F0.95,20,∞ = 1.57 "critical value from the F-Distributions tables with alpha .05"), thus, we reject out null hypothesis and accept the alternate one that states that responses in our sample is a good fit. We included the complete ANOVA summary table in the appendix. The next step is to test the regression of data based on different factors. Regression analysis is used to predict the value of one variable on the basis of other variables, in other words, it can measure the strength of the relationship between different factors. We categorized our questions into groups according to the type of information that they measure; they are (ECI & Employee Status, Consumer Credit, CPI inflation, purchasing Power, and Government Support). We started with the ECI and Employee Status Group, where we tested the relationship between getting promoted in work against the security in work regarding facing the threat of getting unemployed, and whether planning to stay in current job or quitting or even migration for finding a better job. The aim of this test is to analyze whether an employee is feeling comfortable in his work environment, which indicates ECI and Employee Status Report. The following table is the result of this test.

ANOVA

df

SS

MS

F

Significance F

Regression

2

1.407

0.704

3.033

0.054

Residual

76

17.631

0.232

Total

78

19.038

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

1.075

0.227

4.732

0.000

0.622

1.527

0.622

1.527

Are you planning for one of the following?

-0.046

0.047

-0.977

0.332

-0.139

0.048

-0.139

0.048

In your work environment. Are you facing the threat of getting unemployed?

-0.081

0.040

-2.045

0.044

-0.161

-0.002

-0.161

-0.002

-Table 10- Regression Test for Type 2 Questionnaire, group 1-

The table above proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.000) and approaching zero, so the test statistic is significant at that level. Also, from the F value (3.033 < F0.95,2,120 = 3.07 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. Where we concluded that there is an inverse relationship between getting promoted, and the thread of getting fired, and the consideration of changing one's job, quitting or even migration. Next, our second group is Consumer Credit Report group, where we tested the relationship between income status against having financial obligations, hardship in fulfilling loan installments and needing extra loans. The aim of this test is to have a general view about the customer credit report during the crisis. The result of this test is summarized in the following table.

ANOVA

df

SS

MS

F

Significance F

Regression

3

6.420

2.140

2.284

0.086

Residual

75

70.263

0.937

Total

78

76.684

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

2.184

0.318

6.867

0.000

1.550

2.817

1.550

2.817

Do you have any financial obligations/ problems ( such as loans

-0.105

0.251

-0.418

0.677

-0.604

0.395

-0.604

0.395

Do you have an obligation in which its hard to fulfill its installment since 2009?

0.527

0.281

1.877

0.064

-0.032

1.087

-0.032

1.087

Do you think you will need to take a loan / or extra loan  in the following

0.118

0.071

1.657

0.102

-0.024

0.261

-0.024

0.261

-Table 11- Regression Test for Type 2 Questionnaire, group 2-

The above table proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.000) and approaching zero, so the test statistic is significant at that level. Also, from the F value (2.28 < F0.95,3,120 = 2.68 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. Where we found that there is an inverse relationship between the income and having financial obligations, facing hardship in fulfilling loan installments and the need of taking an extra loan in near future. Now we will move the CPI and Inflation group, where we tested regression between individual's Consumer Credit based on financial obligations against inflation that is represented by the increase of the prices of (Goods and Products including food, water and electricity bills, oil and services). The purpose of this test to anticipate how the CPI and Consumer Credit is affected by the global crisis.

ANOVA

df

SS

MS

F

Significance F

Regression

4

1.361

0.340

1.791

0.140

Residual

74

14.057

0.190

Total

78

15.418

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

1.264

0.303

4.177

0.000

0.661

1.866

0.661

1.866

The increase of the prices of  goods and products (such as food,  clothes, etc) :

0.013

0.057

0.231

0.818

-0.100

0.126

-0.100

0.126

The increase of the prices of  electricity and water bills

-0.019

0.045

-0.422

0.675

-0.109

0.071

-0.109

0.071

The Increase of the prices of  fuel/oil

-0.077

0.051

-1.504

0.137

-0.179

0.025

-0.179

0.025

The Increase  prices of services (telecommunications, health, transport, etc)

-0.075

0.052

-1.440

0.154

-0.178

0.029

-0.178

0.029

-Table 12- Regression Test for Type 2 Questionnaire, group 3-

The above table proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.000) and approaching zero, so the test statistic is significant at that level. Also, from the F value (1.791 < F0.95, 4,120 = 2.45 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. We found out that there is an Inverse relationship between CPI in (foods, oil, services and electricity and water bills) and consumer credit. As for the purchasing Power group, where we tested the regressions between consumer credit that is represented by financial obligations and purchasing power that is represented by ( purchasing durable goods and Existing house sale and Housing Start). As a result for that statistical test, we will conclude the relationship between consumer credit and purchasing power, and how they are affected by the global crisis.

ANOVA

df

SS

MS

F

Significance F

Regression

3

0.925

0.308

1.596

0.197

Residual

75

14.492

0.193

Total

78

15.418

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

0.708

0.130

5.460

0.000

0.450

0.966

0.450

0.966

Are you planning to purchase a car (or any other vehicle) in the coming 3 years?

0.006

0.032

0.176

0.860

-0.058

0.070

-0.058

0.070

Are you planning to buy/ build/change/ refurnish a house in the coming 5 years?

0.022

0.036

0.618

0.539

-0.049

0.094

-0.049

0.094

If you are planning to build a house, how long do you think it'll take

-0.079

0.036

-2.179

0.032

-0.152

-0.007

-0.152

-0.007

-Table 13- Regression Test for Type 2 Questionnaire, group 4-

The above table proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.000) and approaching zero, so the test statistic is significant at that level. Also, from the F value (1.596 < F0.95, 3,120 = 2.68 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. We found that there is a direct relationship between consumer credit and durable goods (represented by purchasing vehicles) and planning to purchase a house. And an inverse relationship between consumer credit and time required accomplishing building a house. Finally, for the Government Support Group, where we aimed to find the relationship between the need of the new policy taken by the government and the current financial situation to evaluate the overall situation from the public view.

ANOVA

df

SS

MS

F

Significance F

Regression

3

0.148

0.049

0.525

0.667

Residual

75

7.042

0.094

Total

78

7.190

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

0.132

0.076

1.740

0.086

-0.019

0.284

-0.019

0.284

Overall, how would you describe the financial and economic situation in your country over the previous 18 months?

-0.024

0.028

-0.840

0.404

-0.080

0.033

-0.080

0.033

How do you describe the  impact  of  the global economic crisis on your country over previous 18 months

0.023

0.036

0.645

0.521

-0.048

0.095

-0.048

0.095

How long do you expect the impact to last?

-0.001

0.001

-0.767

0.446

-0.004

0.002

-0.004

0.002

-Table 14- Regression Test for Type 2 Questionnaire, group 5-

The above table proves that data is accepted based on the P-value of the F that is very tiny (P-value = 0.086 ), so the test statistic is significant at that level. Also, from the F value (0.525< F0.95, 3,120 = 2.68 "critical value from the F-Distributions tables with alpha .05"), thus, accept the results of this test. We found that there is a relationship between financial and economic situation of the country over the previous 18 months and the impact of the global economic crisis over previous 18 months against the need for a public policy.

Finally, we grouped our questions according to what economic indicator they represent then we found the correlations among these groups. The correlation statistical test aims to find the relationship between any two variables. As the absolute value increases, so does the strength of the relationship. The following table shows inverse relationship between consumer credit and CPI, inverse relationship between Employment and ECI and CPI, Direct relationship between Mutual flow CCI and CPI, Direct relationship between purchasing power and CPI, inverse relationship between  income describe and CPI. And same goes for the rest of values.

inflation and CPI

consumer credit

Employment and ECI

Mutual flow CCI

purchasing power

Income describe

inflation and CPI

1

consumer credit

-0.081

1

Employment and ECI

-0.052

0.220

1

Mutual flow CCI

0.012

0.326

0.106

1

purchasing power

0.061

0.120

0.083

0.096

1

Income describe

-0.048

0.625

0.190

0.267

0.178

1

-Table 15- Correlation Test for Type 2 Questionnaire, summary-

After we finished analyzing the questionnaires we included here the analysis of the interview.

From our interview we can say that the interviewee's bank is in good condition and the problems raised because of the crisis is small and the bank can cover them ,because he have the liquidity, and the decision makers are doing well.

Now, we are going to analyze each country's financial and economical situation based on our researched.

Starting with Turkey, according to what we get from our resources, the government and decision makers claimed that Turkey is in a safe position from the global crisis and their economy is in a great healthy shape. However, as found from IMF, that  Turkeys GDP growth before the crisis was 6.9% in 2006, through the crisis it fell to  4.7% in 2007, and dramatically dropped to -5.1% in 2009. Their CPI was 9.6% in 2006, it slightly verifies thought the next years; it increased in 2008 to 10.4%, but it decreased to 6.9% in 2009 (IMF, 2009).

As for Iran, their government claimed that they are spared from the crisis since they are economically isolated from the rest of the world. However, according to (IMF, 2009) from the year 2000 up to 2005, their GDP growth slightly decreased from 5.7% to 4.7%. Then it reached 7.8% in 2007 then it dramatically decreased to 4.5% in 2008 after the crisis and continued to decrease. For a more specific outlook, we see their oil GDP growth,  in 2006 it was 2.7%, as the crisis made its hit in 2007, it fell to 1.7%, and kept falling to -4.0% in 2009 due to dramatic drop of  oil prices.  The CPI, in 2006 it was 11.9%, it increased in 2007 to 18.4%. It jumped to a scary 26.0% in 2008. In 2009 it decreased to 18.0% and expected to further decrease in the following year.   Overlooking their Government Dept, in 2004 was 26.3%, it kept significantly decreasing to 14.6% in 2009.

Regarding to Kuwait, economists financial analysts don't agree with each other, some say Kuwait's economy is in a pretty good shape, and others say it is not. The IMF announced that Kuwait GDP growth in 2006 is 5.1%, decrease to 2.5% in 2007 and then highly increased to 6.3% in 2008 and it's expected to fell down to reach -1.1% in 2009. Also IMF publicize that the Oil GDP was 2.9% in 2006, decreased to -2.3% in 2007, increased again to reach 4.2% in 2008, unfortunately it decreased to -4.5% in 2009. The CPI in Kuwait's economy was 3.1% in 2006, increased to 5.5% in 2007, highly increased up to approximately twice of its percentage to 10.5% in 2008, thanks good it extremely decreased to 6.0% in 2009 and it's expected to continue decreasing.

As for Kingdom of Saudi Arabia, its economy looked so healthy. But according to IMF, its GDP growth was 3.0% in 2006, 3.5% in 2007, increased up to 4.6% in 2008, however it decreased to -0.9% in 2009 and expected to be increased. The Oil GDP growth was 6.2% in 2005, highly decreased to reach -0.8% in 2006, and slightly increased up to 3.2% in 2008. Unluckily it fell to be -10.5% during 2009. IMF says that Saudi Arabia had 2.3% CPI in 2006, 4.1% in 2007,   jumped to 9.9% in 2008, luckily it decreased to 5.5% in 2009 and expected to continue in decreasing.

Finally, the government of Bahrain and its decision makers statements' says in no doubt that Bahrain is a safe place economically and it resists all the collisions. IMF published that the GDP growth of Bahrain was 6.7% in 2006, increased to 8.1% in 2007, whereas it decreased in 2008 to 6.1%, and dramatically fell to 2.6% in 2009. When we look deeply to its Oil GDP we see that IMF says that it equals to -8.8% in 2005, highly increased to -1.0% in 2006, slightly continue increasing to reach 1.2% in 2008. But in 2009 it became 0.1%. According to IMF, the CPI in Bahrain is 2.0% in 2006, 3.3% in 2007, and 3.5% in 2008, slightly decreased to 3.0% in 2009 and expected to continue decreasing slowly.

7. Discussions and Conclusions

This is the most important part of our paper which highlights and summarizes our research. We will discuss the results of our analysis versus the statements and facts told by economists and financial specialist regarding the recovery from the global business crisis.

We found in our analysis that our samples for both questionnaires - applied on the Kingdom of Bahrain - are acceptable in terms of sample size and variation of responses, therefore, statically, we can rely on our results. First of all, considering our results we got from decision makers - Type 1 questionnaire-,   we found that most organizations has easily adapted to the tight resources that was enforced by the global business crisis according to the responses we got in the questionnaire. However, we found that many financial organizations (such as Investcorp, GIP and ABC banks) announced great losses, and some huge projects have been delayed (such as Al-Dur power and water by GIS and KFH). Therefore, we conclude that decision makers in Bahrain are hiding actual facts regarding their financial status after the crisis. In our analysis to Liquidity and Money Supply, most of the responders to the questionnaire agree that there has been a decrease in liquidity and money supply due to the global crisis; some expect their budget and liquidity to increase in the near future. Which matches with information published by (Matthew, 2009) that CBB's action in reforming banks and pumping it with liquidity. Regarding the crisis effect over the organizations, we found though the analysis of our questionnaire that organizations that has enough liquidity will not need to cut its resources, and this is the case of most organizations in Bahrain in which they do not need to reduce their recourses , doesn't affect the efficiency of their work. However, this is contradicts the fact that CBB had to pump liquidity to banks, meaning that they had a problem with liquidity. To add up more to it, we may ensure this conclusion based on the out test between the need of support and sufficiently of strategies they have taken, we got a contradiction in our statistical analysis. In other words, they actually got support from the government, but they are denying it and claim that their stand on their own feet. From our analysis between the most important economical indicators we can conclude that the liquidity and money supply play the most important role in raising the other indicators so the organization that has enough liquidity has high probability to recover from the crisis.

Secondly, we concluded many things from the questionnaire related to the public. First of all most employee feel very secure in their work environment, especially who work in government or semi government sectors, since the ECI of them is stable. However, few organizations in Bahrain had already fired many employees. Also all  the public said that the prizes of goods, services, food, water, electricity has been extremely increased whereas their income remained the same which put them in bad situation so the need to take loans and facing difficulty in fulfill their loan installments indicating highly increase in CPI, greatly decrease in consumer credit and purchasing power. The public that the government has already supported some of people needs (food, electricity, oil, etc) but the level of support is not enough so there is a need to new policy. According to IMF (2009) the inflation in Bahrain slightly increased which match our result .As a conclusion the people needs either to increase the consumer credit by increasing  the ECI,CCI and mutual flow or decrease the CPI or both. Bottom line, Bahraini public is honest in describing their current financial and economic situation from their point of view, whereas the decision makers refuse to reveal their organization's situation which makes them suspects of not telling truth. However, according to IMF statistic Bahrain in a better situation compared to other countries in the same region so it has the chance to overcome the global crisis impact.

Considering the financial and economical situation that looked in a very good shape due to high liquidity, smart investment, large projects and they have many companies that are cash rich. However, according to IMF statistics the Saudi GDP highly decreased because of their high dependency on oil revenues that dropped due to the crisis. Also it faced a very high inflation. However, the situation is expected to get significantly better. Saudi has a good probability to overcome the crisis because of their enough liquidity.

As for the State of Kuwait, we saw many contradictions in economists and financial analysts' statements.  Although Kuwait has a lot of ambitions to improve its economy and a lot of plans for the finance sector, it couldn't apply them properly because it got hit by the crisis. It has taken some measurements to overcome the crisis, but it wasn't enough to boost its economy. According to IMF statistics, Kuwait's GDP growth wasn't in a good shape even before the crisis, it somehow increased in 2008, but later, it decreased. It also faced terrible CPI inflation in 2008, however, it decreased and expected to further decrease. It was a hard to get a clear view of Kuwait's financial situation, but according to those statistics, it seems that Kuwait is in a very bad shape and not able to overcome the global financial crisis.

For the Islamic Republic of Iran, the economical situation is already ion a bad condition before the crisis. Even though it's isolated from the rest of the world, it didn't spare it from the global business crisis impacts since it faces the same factors that caused the crisis in the USA, this Iran is also facing a bad crisis that hits its economy badly. However, the Iranian government denies it, and it didn't do anything to solve its financial and economic problems. What makes it even worse, that the government strategies are not taking wise actions and ignoring the economists' warnings. Iran's GDP mostly depends on oil revenues, so, as the oil prices dropped, Iran's GDP got dragged along with it, and this is what we found in IMF statistics. This contradicts what that government declared of being in the safe side. Form all aspects; Iran is not willing to overcome the impacts of the global business crisis, unless the government of Iran decides to overlook its policies.

Finally, when we overlooked the situation in Turkey, we found many contradictions between the government statements and the actual facts that describe the economical situation in Turkey. We can conclude that their economic sector is in a healthy shape because it has experience to deal with such a crisis by applying the correct strategies that can help them. According to IMF statistics, its GDP is dramatically falling down during the last 5 years; also CPI inflation is increasing on low passes. Unexpectedly, it has a lot of international debts, which are increasing, highlighting the government's claims that are not totally honest. Inspire of all that, to the rest of the world, especially Europe, Turkey is considered to be one of the most healthy and safe places to invest in, as a result for that, it has a big chance to overcome the global business crisis. And by that we have accomplished the goal of paper, by specifying which of the five selected countries are willing to overcome the crisis.

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