Transcript Chapter 7 Section 5 - North Penn School District

Economic & Social Development:
Lands of Wealth & Poverty
(Review of GRQ’s 1 & 2)
2
Areas of
concentration:
 Iranian/Arabian
sedimentary basin
(Saudi Arabia,Iraq, Iran,
Oman, PG states)
 North African fields
(Algeria, Libya, Egypt)
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!
Nations
lacking in petroleum…
Morocco
Yemen
Israel
Jordan
Lebanon
Turkey
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
 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).

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)

Richest heads of state

world's highest per capita GDP

Per capit GDP for MENA nations only

Middle East development expo
 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
 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)
 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.
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Organization of
Petroleum
Exporting
Countries
(www.opec.org)
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.
 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.

MOROCCO:

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.
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);
 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.
 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!
 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.
 Tourism
brings in big dollars to the region &
is expected to grow as a % of the overall
regional economy throughout the 21st
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
 The big picture