Economic Development Middle East and South Asia Essay

Economic Development nerve East and South Asia - Essay ExampleThe dramatic increase of oil prices can be related to the Arab-Israeli warfare that occurred in the year 1973 and the Iranian revolution which occurred in 1979. The oil producing states in the Middle East have directly bring ined from the high export earnings brought by oil earnings. Further, there has been a decrease in the employment opportunities due to the blooming economies of these oil producing states (Askari 9).Non oil producing countries in the Middle East have in like manner benefited even though they do not produce oil. Their citizens have crossed borders to seek for employment opportunities as well as suitable markets for doing business. Further, several citizens in the non oil producing countries have migrated in order to earn money as teachers, construction workers and engineers in the oil fields. The earnings from the employment opportunities for these citizens have very essential for the growth of count ries like Egypt, Jordan, Yemen and Palestine. During the period of economical development in the oil producing countries in this realm, non oil producing countries also gained from the high levels of foreign aid they were able to express from the oil producing countries (Askari 9).The increased oil revenues in the Middle East brought about several developments, especially in the social scene. The countrys infant death rate as well as life expectancy was improved. The infant mortality rates were halved while life expectancy in the Middle East region rose to over ten years. On the education sector, more citizens were able to enroll for school. Adult education levels were also on the rise (Rodney 45). Further, another benefit for increased oil revenues led to the decreased gap between the poor and the rich. This show that while the revenues from oil were increasing, more or less countries developed faster than the others in their subject area wealth. The major oil producing count ries especially those with low population in the gulf were able to substantially improve the lives of their citizens. The income level per person in these countries would in some cases, surpass those of the European countries. On the contrary, countries such as Jordan and Yemen have remained to be the poorest in the region as well as in the world (Rodney 45). The economic growth, however, came to a decline in 1986. This period witnessed the decrease of oil prices from $28 per barrel to $10 per barrel. This huge drop in the price of oil was as a result of the overproduction of oil in these states. Consequently, the huge economic gains that had been made started to decrease. This decline in the economy led to the loss of employment opportunities as well as numerous job losses. Further, the non oil producing countries were not able to get foreign aid they had previously enjoyed from the oil producing countries (Rodney 45). Economic future The Middle East is currently being challenged b y various factors in their economies. The most evident factor is the rapid population growth. The average population growth in the Middle East currently stands at 3% per year. This means that the population in a given state will double in any 20 years. The increased rate of population growth in this region is one of the highest in the world. The sub Saharan region in Africa still leads in the population growth rate in the world (Askari 10). Large population growth leads to various challenges in the economy and the available resources.