Can Qatar avoid Nauru's fate?

Why not...not all countries in the world has LNG or dependant on LNG

Sure, remo.  It's all part of the effort to diversify the wealth.  But virtually all of it still comes from LNG.  My question is can they avoid Nauru's fate--which failed to diversify before the resources ran out.

they are doing extensive invsetments outside of Qatar..alone QTel group is operating in 17 countries other than Qatar, for the rest I dont have the stats with me.

For the creation of wealth, predominately yes.

Are you sure that Qatar is only depending on its natural resources.?

Interesting post, Genesis.  I think it could apply to Kuwait and Bahrain, but I am less convinced about the UAE and Saudi, as the UAE is not as dependent on a single resource and KSA always has agriculture. But a good case could be made for them, too.  I singled out Qatar because we are on QL and because it is the most extreme example--smallest but also wealthiest per capita and with a huge rich-poor gap. I think the government (or at least elements within it) are trying to diversify--certainly much harder than Nauru's did.  The knowledge-based economy (particularly the idea of getting as many patents as possible and living off the dividends) and the diversification of wealth by investing in and buying foreign holdings, etc. are the only viable alternatives to Nauru's fate.  The first has a better chance than the second--the wealth fund is making some poor investment choices and foreign governments have a habit of blocking the sales of stuff really worth buying (utilities, etc.).The longterm problem:  what do you think will happen IF Qatar gets it right, and manages to diversify before LNG becomes obsolete?  There is no way Kuwait or KSA will manage that.  At that point, confederation will be bad for Qatar but good for the much larger KSA.  How do you think the Saudis will respond?  

Because you all live in the 15th century!

Why do you think after all our GCC states citizenship laws are more or less similar ?

From Qatar national development strategy it appears that Qatar is not opting to diversify its resources. Instead it will focus on enhancing its sovereign wealth funds & building a knowledge based economy. So far it seems that not many locals are in line with this strategy , as some continue to clash with accepting globalization & approaching education opportunities

The question is why Qatar & not UAE, Kuwait or even Saudi? After all, gulf states are all Rentier states. Thier destiny is one , despite their current conflicting foreign polices approaches.

In worse case scenarios, they'll end up as a confederation. Something GCC intellects have been calling for a while now and I don't see it as impossible to happen as all those states ruling families shares the same tribes & are related in blood. So is thier citizens

klaatu--yes there are obviously some big differences.  But, as you point out, there are some striking similarities.  Dependance on a natural resource for wealth creation is a big one--something that distinguishes both from other wealthy small countries, such as Luxembourg.  They are also both surrounded by substantially more powerful neighbors who desire to exploit those natural resources.   While Qatar's LNG reserves are proven into the next generation, banking on it to create wealth for 200 years is a huge stretch.  Because if either of the following happened, the reserves would be pointless.1. An viable alternative source of energy is discovered.  Remember, LNG wasn't even in play 200 years ago.  Someone develops a safe, cheap and viable hydrogen fuel cell and it is all over.  2. The discovery of even greater source of LNG and prices fall dramatically.  Certainly possible, as much of the world's potential fields have not been explored.  Who knows what is sitting under the polar ice caps. Eventually, LNG will become obsolete as energy source; it is just a matter of how and when.  It's a race against time in which no one knows how much time is left on the clock.

klaatu , lol. there is a Nauruan saying that goes " wealth is measured not by money but by the girth of your waist ".    

There are a few diffferences

1. Nauru did it to themselves, misguided.  They never pursued advancement in education, economy, etc. etc. they just spent the money they had without thinking abuot their future. you should have seen how much they spend travelling the globe, when they dont even have proper desalination plant to provide for their population. on the other hand, what future lies when your country's riches is the land itself. Overmining would simply result to their extinction, and then what?till they are a square kilometer country ?

2. Qatar invested. They keep on investing. and get robbed.

Frenchie... hardly comparing apples to apples here.

The principal of wealth mismanagement can be applied to any country; however all things considered the two countries share very little in terms of demographics; economy; politics; history etc. Beside Qatar being a member of the GCC and the wider Arab and Muslim world affords it many protections the Nauruan did not have. Further if things remain stable; then Qatar's gas reserves should last about 200 years at least at current rates of exploitation.

However onw worrying potential similarity was found:

http://en.wikipedia.org/wiki/Nauru

Nauruans are the most-obese people in the world.[50] 90% of adults have a higher BMI than the world average.[51] 97% of men and 93% of women are overweight or obese.[50] Nauru has the world's highest level of type 2 diabetes, with more than 40% of the population affected,[52] 47% in American Samoa, 44% in Tokelau.[50] Other significant dietary-related problems on Nauru include kidney disease and heart disease. Life expectancy on Nauru in 2009 was 60.6 years for males and 68.0 years for females.[53]

Yes, frenchie, if they can!

Good distinction LP.  WILL they?

???  You lost me.

The question is not 'if they can'. The question is 'if they will'.

Nice one Centurian.. :O)