REGIONAL ECONOMIC PATTERNSChapter 7 Section 5

Regional Economic Patterns

Higher-Income Oil Exporters – Question 1 Saudi Arabia, Kuwait, Qatar, Bahrain, U.A.E. Cultural landscape reshaped because of oil

wealthHuge investments in transportation,

education, housing, petroleum-related industries, etc.

Not all benefit – rural Shiite Muslims and foreign workers

Wealth remains concentrated among the ruling elite

Problems associated with a strong dependency of Oil – Question 2

Think, pair, share: Turn to your neighbor to share some of the problems you think are the biggest concern of being heavily dependent on oil.

Summarize your ideas into 3 main points

Problems associated with a strong dependency of Oil – Question 2

Regional Economic Patterns (cont.) Lower-Income Oil Exporters – Question 3

Secondary players in the oil trade (Algeria, Libya, Iraq, and Iran)

Algeria: oil and natural gas are its top exports; but political instability remains a problem

Iraq has sanctions imposed after the Persian Gulf War which tremendously hurt their economy. Low standard of living (poor healthcare and food

shortages) Iran: huge oil reserves

Long war with Iraq (1980-90) both costly and bloody

Fundamentalist government withdrawal from world trade in fear of importing unwanted cultural influences has lowered living standards

Prospering Without Oil – Question 4 Israel has highest living standard in the region

Strong agricultural and industrial bases Investment in computers, telecommunications, etc. U.S. and European companies have invested time and

money in maintaining development and production in Israel

Turkey has a diversified economy; has seen growth Strong agricultural business Most important tourist destination (seeing old sites of

the Ottoman Empire and Byzantine Empire) Strong ties to the West

Economic reforms in Tunisia – Creating business ties with the U.S. and the global market (More diversified economy – tourism, manufacturing,

and agriculture) Lebanon has potential for prosperity through tourism

& telecommunications

Regional Patterns of Poverty – Question 5 Sudan’s economy ruined by civil war

Political instability causes disruption of economic development (agriculture)

Morocco is poorer than Algeria or Tunisia and suffers from brain drain Brain drain – phenomenon in which some of

brightest young people leave for better jobs in Western Europe

Egypt’s prospects unclear, with growth in 1990s, but large gaps between rich and poor Political instability after Arab Spring Country’s inability to expand its economy faster than

its population Yemen is poorest country in the Arabian Peninsula

Less diverse economies (strong ties to subsistence farming)

Strong rural populations have little access to outside world