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Economic & Social Development: Lands of Wealth & Poverty (Review of GRQ’s 1 & 2)

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Presentation on theme: "Economic & Social Development: Lands of Wealth & Poverty (Review of GRQ’s 1 & 2)"— Presentation transcript:

1 Economic & Social Development: Lands of Wealth & Poverty (Review of GRQ’s 1 & 2)

2  2 Areas of concentration:  Iranian/Arabian sedimentary basin (Saudi Arabia,Iraq, Iran, Oman, PG states)  North African fields (Algeria, Libya, Egypt)

3  With only 7% of the world’s population this region holds 68% of the world’s proven oil reserves. Saudi Arabia has 21,000,000 residents who live atop 26% of the planet’s known oil supplies!

4  Nations lacking in petroleum…  Morocco  Yemen  Israel  Jordan  Lebanon  Turkey

5  In addition to their large oil reserves, the wealth of many of these nations is compounded by their relatively small populations. GDP per capita is high.  Bahrain’s population: 701,000  Qatar’s population:596,000  Kuwait’s population:2,275,000  UAE’s population: 3,108,000

6  Much of the oil wealth remains concentrated in the hands of a small “elite”  However, petrodollars (revenue from the sale of petroleum) provide a higher standard of living and other benefits for the rest of the population as well (schools, medical facilities, low-cost housing, modernized agriculture).

7  Remember – per capita GDP is a representation of each individual’s share of the nation’s wealth…  Bahrain’s per capita GDP:($17,640)  Qatar’s per capita GDP($11,600)  Kuwait’s per capita GDP:($20,910)  UAE’s per capita GDP:($17,965)

8  Richest heads of state Richest heads of state  world's highest per capita GDP world's highest per capita GDP  Per capit GDP for MENA nations only Per capit GDP for MENA nations only  Middle East development expo Middle East development expo

9  Israel’s per capita GDP: $27,530  They’ve invested large amounts of capital in a highly productive ag. And ind. Base;  Global center for high-tech computer & telecommunications products;  Many US & European industrial development & production centers;  Entrepreneurial business culture

10  Produces varied agricultural & industrial goods for export (cotton, tobacco, wheat, fruit, textiles)  Most important tourism destination in the region  Maintains close ties with the West (like Israel)

11  Poorer countries in the region have low literacy rates, lack access to modern services & infrastructure)  “Brain Drain” the brightest young people in the poverty stricken nations leave those countries for better jobs in other parts of the world  Yemen is the poorest country in the region (per capita GDP = $1,360) Many work outside their country.

12  Organization of  Petroleum  Exporting  Countries  (  OPEC ensures this region will play a role in affecting world oil supply and therefore prices…however…it doesn’t have as much clout as it used to. Many oil rich Arab nations are now allowing foreign investment and/or establishing partnerships with foreign corporations increasing the regions integration into the global economy.

13  SUDAN: civil war resulted in the emergence of S. Sudan as a separate nation; both Sudanese nations have serious, ongoing political instability problems that have created serious poverty for their citizens. There is significant oil near the border & China is an interested customer, but the 2 nations can’t agree on how to split/share the oil.

14  MOROCCO: still undeveloped & poor in Atlas Mt. Region, but in urban areas economic reform & privatization have led to economic growth. Unfortunately, “BRAIN DRAIN” has hurt their chances for future growth (happens when smart, young people leave the country for better opportunities elsewhere);  EGYPT: had significant economic growth under Pres. Mubarak in the 90’s, however, the gap between rich & poor was huge & a big contributing factor to Mubarak’s overthrow & the Arab Spring revolt of 2011. Egypt is currently under military control & it looks less and less like the democratic reforms that were the basis of their revolution will actually occur.

15  The highest female illiteracy rates we will see all year are in this region; 57% in Egypt, 55% in Iran, 65% in Morocco; 76% in Yemen.  Lowest percentages of female participation in the labor force as well.  Both these factors can be tied to the presence of extreme Islamic Fundamentalism where a very narrow interpretation of Islamic Law keeps women from pursuing education & employment.

16  POSITIVES: OPEC ensures a place for the region in the global economy. Turkey has close ties to the EU, but is not a full member. Others who favor closer ties with the EU & the global economy say that it will bring more export-oriented business into the region.  NEGATIVES: critics of globalization fear that closer ties with the EU & more global trade may lead to Western dominance and/or an increase in western culture in the region…which they do not want!

17  Tourism links the region to the global economy;  Tourism magnets include ancient historical sites & globally significant religious localities. Also, beaches & climate draw tourists as well.  Resort hotels, which once were lacking, are now growing in response to tourism demand.

18  Tourism brings in big dollars to the region & is expected to grow as a % of the overall regional economy throughout the 21 st century. It is threatened, however, by regional political unrest & instability.  Also – Tourism has produced a local underclass of poorly paid service workers & is widening the gap between the wealthy & the poor.  Kuwait Kuwait  The big picture The big picture

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