Economic Geography of SW Asia SSWG6 Examine the spatial distribution of major economic systems and analyze the role geography plays in economic development. .

The Arabian Peninsula

Economics in the Arabian Peninsula Main resource = oil Region grew more important as oil became more important GDP largely oil sales Revenue from oil sales used to develop other parts of economy Water development projects Economics in the Arabian Peninsula

Organization of Petroleum Exporting Countries (OPEC) Formed in 1960 Coordinate policies on selling petroleum projects Control worldwide oil prices Adjust oil prices & production quotas Powerful force in international trade Organization of Petroleum Exporting Countries (OPEC)

Change to Urban Life Increase in urbanization as economy develops 2/3 of population live in cities Upgrading education to meet systems to meet needs of technological age Skilled workers Change to Urban Life

The Eastern Mediterranean

Economic Problems Newly independent nations = many economic problems Political divisions, refugees, lack of water, weak infrastructure = weak economies Economic Problems

Modern Infrastructure Israel – modern infrastructure & irrigation Good climate to produce/export crops & tourism Good location to international markets Poor infrastructure Destroyed roads, little irrigation, weak communication & power systems = cannot develop high-tech industries Modern Infrastructure

The Northeast

Reforming Economies Limited agricultural land Efficient production in order to produce surplus crops for export Oil & natural gas reserves = revenue Update transportation, communication, power, water & sanitation systems Reforming Economies

Progress in Turkey Making progress in modernizing economy Developing water resources & hydroelectric energy Boost production of cotton & other agricultural products #1 steel producer in region Ideal location for trade Progress in Turkey

Progress Interrupted Iraq Afghanistan Political problems & war limits development Rebellion against U.S. forces & religious conflicts Oil drilling & shipping interrupted Lacking food, medical supplies, electricity, gas Political problems & war limits development One of poorest nations in world Most profitable crop = opium Great mineral resources but war stopped development of these Corrupt government & potential for Taliban to regain power

Significance of Oil in SW Asia

Meeting the Global Demand Oil is strategic commodity – resource so important nations will go to war to ensure its steady supply SW Asia has ½ world’s oil deposits & 1/3 natural gas reserves Oil increasingly in demand Unpredictable rise & fall of cost of oil = difficult to have steady economic growth Meeting the Global Demand

Using Oil Wealth to Diversify Cannot base economies purely on oil b/c unpredictable prices 3 challenges to using oil profits Modernize infrastructure Develop agricultural, mineral, & water resources Higher education & job training Using Oil Wealth to Diversify

Using Oil Wealth to Diversify – Modernizing Infrastructure Build new roads & irrigation Desalinization plants – remove salt from seawater for city & industrial use Building information technology systems to conduct online businesses Using Oil Wealth to Diversify – Modernizing Infrastructure

Using Oil Wealth to Diversify – Developing Resources Develop resources besides oil Oil profits used to develop other resources Arid climate = little agriculture = building of irrigation (i.e. dams) Ex. Saudi Arabia – agricultural products to grow wheat Using Oil Wealth to Diversify – Developing Resources

Using Oil Wealth to Diversify - Human Resources Human Resources = skills & talents of people/employees Nations realizing must invest in all people, including women Providing education & technology training Shortage of workers opening opportunities for women Using Oil Wealth to Diversify - Human Resources