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

2. The Arabian Peninsula

3. 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

4. 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)

5. 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

6. The Eastern Mediterranean

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

8. 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

9. The Northeast

10. 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

11. 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

12. 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

13. Significance of Oil in SW Asia

14. 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

15. 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

16. 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

17. 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

18. 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