Middle Eastern Countries and the Washington Consensus

The role of the Middle East has been very crucial to the United States, especially after WWII. The U.S. had three strategic goals in the Middle East and consistently followed them throughout various events that unfolded in the region. First, with the emergence of the cold war between the Soviet Union and the U.S., policymakers began to recognize the importance of the Middle East as a strategic area in containing Soviet influence. This also coincides with the U.S. becoming increasingly wary of Arab nationalism and the threat it posed to U.S. influence. Secondly, the emergence of the new Israeli state in 1948 further deepened U.S. policy and involvement in the region while also creating friction between the U.S. and Arab states which were

“There is, then, an economic basis for the absence of democracy in the Arab world. But it is structural. It has to do with the ways in which oil distorts the state, the market, the class structure, and the entire incentive structure. Particularly in an era of high global oil prices, the effects of the oil curse are relentless: Not a single one of the 23 countries that derive most of their export earnings from oil and gas is a democracy today.”

“The United States recognizes the provisional Government as the de facto authority of the new State of Israel.” These are the words of President Harry Truman from a speech he gave shortly after Israel became a recognized nation in 1948. Consequently, the political leaders of the United States have brought America on a rough journey to the current state of foreign policy and relationship with Israel. Since 1948, the United States’ active position in the Israeli-Palestinian conflict has seen very little change or progress towards achieving settlement between these two nationalistic states. In the last 65 years, the majority of U.S. presidents repeated mistakes made by their predecessors in office, and this in turn has had little

Oil has often been referred to as any economy’s lifeblood. Although this is an overemphasis, oil has been the key, nonhuman resource of the economy throughout the largest part of the 20th century. In the book “The Prize: The Epic Quest for Oil, Money, And Power” by Daniel Yergin, the author illustrates the political, societal, economic, and geo-strategic importance of this product.

The two most important resources in this region are oil and water. The huge oil “deposits there and in the neighboring countries around the Persian Gulf (the United Arab Emirates, Kuwait, and Bahrain) established these countries as some of the richest in the world” (Document F). Nevertheless, the countries who do not have as much access to oil are weak economically. Oil is the biggest export in the Middle East, and in a way, the amount of oil a country has determines how wealthy that country will be. Another component of oil is that countries and ethnic groups are disputing for the control of prices of this economic resource. It has gone to the far extent of foreign countries attempting to control the oil price and also the use of weapons for this (Document E). In addition, it is impossible for each country to have equal access to water due to the unbalanced distribution of these essential resources. As a result of this, these countries are fighting for as much control of water sources they can get. Radically, there are many countries in the Middle East that are striving to obtain as many natural resources to strengthen their economy and lifestyle, and it seems most obvious that the scarcity of these resources is a significant problem in the region

The Gulf houses half of the world’s oil reserves and a third of the natural gas. The Gulf States still continue to supply the international markets with a significant amount of the hydrocarbons. The stability of the region is crucial for the stability in the global oil markets. The Gulf also hosts one of the most strategically and important choke points in global trade, The Straits of Hormuz, which moves about 35% of the global seaborne oil, natural gas and other trade goods.

The Middle East is one of the birthplaces of human kind’s civilization. Since the Ancient Egypt, Sumer, the Arab Empire, Turkey Empire, or even to present day, the Middle East has always been a valuable strategic point for not only because of its geographic location but also it full of petroleum and nature gas. According the OPEC (Organization of the Petroleum Exporting Countries) that 66% of the global oil reserves are in the Middle East and only 6% in North America, this makes a lot of powerful countries want to share a pieces of the Middle East, Stephen mentions “Much of the world 's oil wealth exists along the Persian Gulf, with particularly large reserves in Saudi Arabia, Kuwait

Persian Gulf Development Literature Oil Curse Literature Arab and Islamic Factors Regional Ovemiew and Historical Background Dubai's Development History

Chapter 16 focuses on American foreign policy and what it entails. Foreign policy of the United States determines how we interact with other nations and also the standards or guidelines for these interactions. Foreign policy is designed to protect America and ensure our safety both domestically and globally. There has been an ongoing struggle involving American foreign policy in the Middle East and specifically the war on terrorism. Conflict in the Middle East has been at the top of the American Foreign policy agenda for the past 50 years.

This economic modernization in the Middle East, could only be a short term success which does not guarantee the successful and stable economic development of oil rich states and the region as a whole in the long term. The Middle East, despite its vast reserves of oil, is still considered a developing region due to the high reliance on oil revenues and rather weak production sector of the economy as well as due to some political factors such as lack of democracy, corruption, reluctance to the reforms and other issues. There are various reasons as to why the Middle East is still considered a developing region despite its oil wealth. Natural resource revenues have also been linked to slow economic growth rates, inequality, and poverty. One culprit may be "Dutch disease," which was discussed earlier. Other factors may include the volatility associated with commodity prices, which can have especially negative impacts on weak-state economies; and the underdevelopment of agricultural and manufacturing sectors during boom periods in resource-based economies. And even when oil abundance produces high growth, it often benefits only a few corrupt elites rather than translating into higher living standards for most of the population. Corruption is one of the economic deficiencies which can weaken economic growth and development; thus it is considered as an important impediment to economic growth and political stability, particularly in developing countries. The dependence on a

Discoverers found Syria’s large deposits of oil fields in the 1980’s. Following this discovery, the government had decided to form partnerships with the foreign companies ConocoPhillips and Shell Oil. With Syrian economy being vastly socialist, there was a hindrance to most foreign investors. In January 2007, some reform came by way of new investment laws allowing foreign companies to export more of their profits. Therefore intriguing new foreign investors to have increased value in Syria (Unknown, “Background Note: Syria", 2011). The country’s large agricultural field is somewhat crippled due to many variables. Its farming and agricultural goods come largely from its rural areas. These farms and crops are 95% privately owned. Yet the government still controls selling locations for the goods. In addition, the transportation means for shipment of these goods (Raphaeli, 2007). The traditional farming and lack of modern irrigation equipment is a trend that largely hinders this department as well. Farming has crippled during droughts and times of seldom rainfall. Due to the 80% of farmers that depend on rain fed sources rather than irrigation systems (Dougherty, 2004). Much of the Syrian economy stands to need some degree of modern reform with internet, cellular, and credit card services

The ambition of the often autocratic leaders to acquire more land, which may bring them access to oil, water or arable land. The problem according to Sørli et. al is “scarcity” and “abundance” (147). Water is scarce, and oil is in abundance, but the access to both is limited. According to our text, the new “water wars” have emerged as a major source of conflict, in addition to the “oil wars” (Anderson et. al, 226). Water is scarce in the Middle East, and will continue to dwindle as the population rises. Not every country has the same access to the water sources, which will naturally cause problems. For example, Israel has control of the Golan, and Egypt of the Nile, and Kuwait of the Persian Gulf. Oil is in abundance, but only to a limited number of countries in the Middle East causing great economic disparity between those who have, and those who do not. Kuwait, having access to the Persian Gulf, produces a large supply of oil to international players. Given its high value internationally, and its worth, oil is much sought after.

Oil has repeatedly been referred to as any economy’s lifeblood. Whereas this is an overemphasis, oil has been the utmost key, nonhuman resource of economy throughout the largest part of the 20th century. In the book “The Prize: The Epic Quest for Oil, Money, And Power” by Daniel Yergin, the author illustrates the political, societal, economic, and geo-strategic prominence of this product. The book was published by Simon and Schuster in 2011 in New York, and contains 928 pages, as its ISBN is 1439134839. This research paper aims to provide a book review on Daniel Yergin’s “The Prize.”

Through reading the case: “Globalization and the Middle East” in John S. Hill’s book, International Business: Managing globalization, PP.124 to 132. Have had a further understanding of the political and religious culture of the Middle East countries, and have had a research for the following questions also written down my own opinions.

The Middle East region is a conservative cultural and religious area that grew at only half the rate of other developing countries during the 1990s. A number of factors such as structural imbalances, the so-called 'curse of natural-culture and religious conflicts, are highlighted for the slow economic development in the Middle East. Similarly, Abed (2003) identifies five main causes holding back the economic growth of the Middle East i.e. lagging political reforms, dominant public sector; underdeveloped financial markets; high trade restrictiveness and inappropriate exchange regimes. apart from these , some of the others factors include the lack of integration into the global