Chapter 7 Section 5

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

 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

 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 ( ) both costly and bloody  Fundamentalist government withdrawal from world trade in fear of importing unwanted cultural influences has lowered living standards

 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