UI350 Middle East Politics Final Exam Study Guide
UI350 Middle East Politics Final Exam Study Guide UI350
Popular in Middle East Politics
verified elite notetaker
verified elite notetaker
verified elite notetaker
verified elite notetaker
82655 BIOL 2040-001
verified elite notetaker
verified elite notetaker
Popular in Political Science
verified elite notetaker
This 12 page Study Guide was uploaded by Brooke Reeves on Saturday January 9, 2016. The Study Guide belongs to UI350 at Southeast Missouri State University taught by Holzhauer in Fall 2015. Since its upload, it has received 61 views. For similar materials see Middle East Politics in Political Science at Southeast Missouri State University.
Reviews for UI350 Middle East Politics Final Exam Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 01/09/16
Terms posted price: the price at which a company will buy or sell a commodity. Generally, the average market price for that commodity if it is not traded on an official exchange. realized price: the price an asset/commodity sells for. A realized gain is the gain from selling the asset/commodity for more than the purchase price. Seven Sisters: seven oil companies that dominated the petroleum industry from mid 1940’s to 1970s; “Consortium for Iran” cartel; controlled 85% of the world’s petroleum reserves; included BP, Chevron, ExxonMobil, and Royal Dutch Shell; term is now used to label 7 most dominant national oil companies (Saudi Arabia, China, Russia, Iran, Brazil, Venezuela, Malaysia) Greater Arab Free Trade Area: GAFTA; 1997; founded by Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, and UAE, with Algeria joining later; reduce customs on Arab products, shared standards and specifications, agriculture pact, private sector incentives, efforts to eliminate all customs duties on local goods. import substitution industrialization: ISI; advocates replacing foreign imports with domestic production to reduce foreign dependency, increase domestic industry statism: state has centralized control over social/economic affairs; state owned or controlled corporation; state manages overall economy; e.g. iranian national oil company, airline rentier state: a state which derives all or a substantial portion of national revenues from the rent of indigenous resources to external clients; rentseeking; monopolies, trade restrictions, solicitation of subsidies or aid in exchange for power; low productivity but high profit earning; persian gulf oil monopolies are examples of this; leads to the government relying on foreign revenue more than domestic revenue, and leads to them being disconnected and autocratic. parastatal: a state owned or controlled corporation modernization theory: three parts 1) Traditional development: selfsufficient, emphasis on the present, low literacy & technology, widespread superstition, fatalism, social status is arbitrary; 2) Transitional development: exhibit both modern and traditional characteristics, less subsistence, more literacy, less pervasive village values, emergence of social economic and political institutions; 3) Modern development: western society, achievement oriented, increasingly urban & literate, high human development, high personal political freedom and usually democratic government dependency theory: poorer nations provide natural resources, cheap labor, destination for obsolete tech, markets for developed nations to enjoy higher standard of living; wealthy nations perpetuate a state of dependence; three classes of countries 1) Industrial core: US, Canada, W. Europe, Japan; 2) semiperiphery: Mexico, Brazil, China, South Africa, Iran; 3) periphery: Russia, most of MENA, SubSahara, Eastern Europe, SE Asia new international economic order (NIEO): proposals in the 1970s by developing countries (Group of ‘77) through UN Conference on Trade & Development to promote their interests; development assistance, tariff reductions, regulation of multinational corps in their borders, free to nationalize foreign property, free to set up commodity associations similar to OPEC; meant to replace Bretton Woods system patriarchy: society or government in which men hold power and women are marginalized; male lineage is superior endogamous marriage: marrying within a specific ethnic group, class, or social group; rejects others as unsuitable for marriage arab league: regional organization in the MENA area; goal is to strengthen relationships and collaboration between members and safeguard independence and sovereignty; Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syrian opposition, Tunisia, UAE, Yemen, Eritrea observing hawala system: informal value transfer system; MENA & Indian subcontintent; based on performance and honor of a money broker network; A pays $100 to X, a broker, and gives a password. X tells M the password at the same time A tells B, the recipient, the password. B tells M the password and receives $90 (the amount minus a commission). X now owes M $100, to be settled at a later date; some government officials say it can be used to facilitate money laundering and avoid taxes which is why it is illegal in some US states, India, Pakistan, and some other countries. patronclient relationship: hierarchical but mutually obligatory relationship between a patron and client(s); an individual with authority/social status/ wealth/personal resource (patron) and a person who benefits from the support or influence (client) international energy agency: organization that was created to respond to physical disruptions in the supply of oil; energy security, economic development, environmental protection; mitigating climate change; promote alternative energy sources; required to maintain a certain oil stock level; US, UK, Australia, Most of Western Europe, Japan, South Korea, Canada, Turkey all OECD members except Chile, Iceland, Israel, Mexico, Slovenia; works with nonmembers China, Russia, and India atoms for peace program: launched by Dwight Eisenhower to the UN in 1953; supplied equipment/info to schools, hospitals, and research institutions in the US and throughout the world; built nuclear reactors in Israel and Pakistan; some view it as an attempt to get nuclear weapons into the hands of US allies at the start of the Cold War nuclear nonproliferation treaty: NPT; aims to prevent the spread of nuclear weapons and weapons tech, promote cooperation in peaceful uses of nuclear energy, and achieve nuclear and eventually complete disarmament; acknowledges 5 nuclear weapons states (US, UK, France, Russia, China, also the 5 permanent members of UN Security Council); criticized as a way to keep nuclear weapons and tech in the hands of the large powers and for not reinforcing total disarmament of those powers honor code: set of rules or ethical principles governing a community based on ideals that define what constitutes honorable behavior within that community sabra: slang term for an Israeli Jew born in Israel wasta: Arabic word that roughly translates to “clout” or “who you know,” meaning the use of connections/influence to get things done; favoritism over merit; nepotism remittances: a sum of money sent, especially by mail, in payment for goods or services as a gift; typically takes the form of money sent to home by a worker in another country; the money earned in a country is not spent or invested in that country structural adjustment programs: SAPs; loans provided by the IMF and World Bank to countries that experienced economic crises; aim to reduce borrowing country’s fiscal imbalances, balance economy OPEC: Organization of the petroleum exporting countries; established 1960 to coordinate/unify petrol policies of member countries, ensure stability of oil markets, secure petrol supply to consumers, income to producers, and return to investors; Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE, Venezuela; affects global oil prices and production targets OAPEC: Organization of arab petroleum exporting countries; founded in 1968 by Kuwait, Libya, Saudi Arabia; aimed to separate production and sale of oil from politics after the Six Day War and resulting 1967 oil embargo hezbollah: shia islamist militant group and political party based in Lebanon; involved in Lebanese civil war and conflicts since, Syrian civil war; classified by many western countries including the US, UK, Canada, EU, Israel and France as a terrorist organization, at least partly hamas: Palestinian islamic organization; designated as a terrorist organization by US, UK, EU, Egypt, Canada, Japan, and others; goal is to liberate Palestine from Israeli control and occupation; established after the first intifada and were active in the alaqsa intifada; repeatedly engaged in conflict with Israel and Fatah mohamed bouazizi: Tunisian street vendor whose selfimmolation set off the Tunisian protests and in turn, the Arab Spring single party regime: system in which a single political party has the right to form the government; other parties are outlawed or are allowed only a limited amount of participation in elections; often use the justification that separate parties threaten national unity third wave of democratization: third major historical surge of democracy in the world; began in 1974 with Portugal’s carnation revolution; included philippines, south korea, taiwan, eastern europe after the fall of the soviet union; many african, asian and middle eastern nations post arabspring may signify the start of a fourth wave of democratization professional military model: professionalization of the military, often with the intent of objective civilian control gulf cooperation council: union of Persian Arab states with the exception of Iraq; all members are currently monarchies (three different types); economic, political, and military coordination; industry regulations, scientific and technological progress and research, unified military, private sector cooperation, common currency are all goals arab winter: rise of authoritarianism and religious extremism in the wake of the Arab Spring; multiple regional civil wars, instability, economic decline, ethnoreligious strife; Syria, Iraq, Egypt, Libya, Yemen, Lebanon, Bahrain, Mali, Tunisia; rise of Islamist extremism and Islamic State cartel: an agreement between competing firms to control prices and/or exclude entry of a new competitor into a market responsibility to protect: international security and human rights norm to address the international community’s failure to prevent and stop genocides, war crimes, ethnic cleansing, and crimes against humanity 1. It is very difficult to categorize or summarize the reasons for the low participation of women in politics in Middle Eastern countries. In some MENA countries women enjoy high literacy rates, but low participation in the workforce or parliament. In some countries with low literacy rates for women, there is high workforce and parliamentary participation. There is not a clearcut formula for determining the extent to which women will be able to participate, nor to what extent each factor will influence such participation. PBS Global Connections mentions that practices that are viewed as oppressive do not come from religion (namely Islam), but are “part of local cultural traditions.” The fact that this can mean any number of traditions, norms, practices, and customs just further illustrates how multifaceted this issue is for women. An article from the Middle East Research and Information Project says, however, that women tend to be more politically active when a state is weakened, with participation declining as the state strengthens. Perhaps this is due to situations such as in the Lebanese civil war in the 1970s, where women were important political players, but remained underground with their activities, because women were not viewed as being political. In the past, markets and homes (places where women would frequent) became places for women to share political ideas. In Iran, women have periodically been viewed in the past as under the ‘thumb’ of their husbands or male family members, and therefore were not only “immune from harm” due to their beliefs, but they were also not taken seriously. Deeplyrooted patriarchal values are a doubleedged sword for women who voice their beliefs in most areas of the Middle East. Today, women use these genderoriented spaces to continue in political activism. Political parties, philanthropies, religious groups, women’s associations, and social agencies provide outlets for women to express political beliefs and act upon them. They also have considerable influence upon men their husbands, fathers, even brothers and other male family members. The MERIP article says, “women’s work proceeds even in turbulent times. They...hold families together and preserve social interaction.” Still today, as in the past, women may still face sexual harassment, public shaming, and other adversities should they attempt to take on public roles or speak out publicly about political issues, indicating that traditional patriarchal values are still strongly permeated throughout the region, and still hold women back from taking more active roles in political movements. http://www.merip.org/mer/mer138/womenpoliticsmiddleeast http://www.pbs.org/wgbh/globalconnections/mideast/questions/women/index.html 2. Simply, ethnoreligious groups are groups of people unified by a common ethnicity, religious belief, and a shared culture and history. Examples include the Druze, Yazidis, Assyrians, Huguenots, Kurds, and Armenians. A tribe, in contrast, are groups of related clans which do not necessarily share ethnicity or religion, but may form a political identity or economic identity, according to Military Review. Iran alone has over 700 tribes dating back up to twelve thousand years ago (Convention on Biological Diversity, 2010). http://usacac.army.mil/CAC2/MilitaryReview/Archives/English/MilitaryReview_20071031_art005. pdf https://www.cbd.int/doc/meetings/abs/wcbabs02/other/wcbabs02presentation09en.pdf 3. Perhaps the best indication that Middle East society still lives patriarchal and paternalistic values is the fact that almost all of the opinions shared by women in the region are given to the west through the lens of men and men’s actions. Shahinaz Ahmed, CEO of the Education for Employment Foundation, says “There is this view that the veiled woman who is controlled by man and who is not free must be liberated...while not even asking women how they want to be liberated.” Ahmed also says that in the Middle East, as well as around the world, is women unfairly carrying two jobs: their career and their home life. Women are still expected to fulfill traditional domestic roles, despite aspiring to have equal work opportunities. Western media is quick to portray Middle Eastern women as horribly oppressed, with no opportunity, and no voice. However, this is not a universal truth and in fact is wrong for a large portion of Middle Eastern women. The Arab Spring and proliferation of social media has given women new outlets to be more vocal than any other time since World War II, and “has shown women challenging the paternalism of the Arab World.” There is widespread hope and changing beliefs, with women starting their own businesses, creating their own economic opportunities, and raising awareness of their independence and competence within society. Though there is still much pushback from religious groups who promote ‘traditional’ women’s roles and violence and discrimination against women, many are optimistic that the old practices and beliefs may be fading. http://www.alterinter.org/spip.php?article3772 4. A basic pyramidal class structure is relatively easy to identify. The majority is poor, constituting the wide bottom of the pyramid. The significantly smaller middle of the pyramid is the betteroff but not incredibly welloff middle class. The tiny upper crest of the pyramid is made up of the tiny upper class of society. In Iran, the highest tier of society constituted 7% of the population by 1996, while the working class, peasants, and nomads made up 53% of the total population. In some countries, this may be due to the decreasing need for certain industries, as Samih K. Farsoun writes, such as the agricultural industry that once provided subsistence farming to now oilrich nations. As more and more food and agricultural products are imported with oil money, lowskilled farm laborers are slipping farther and farther down on the social pyramid. In countries without vast amounts of oil wealth, older industries such as textiles and machinery are “stagnating,” according to Farsoun, and the transition to hightech industries is slow and difficult. This stifles efforts to help the lower classes become upwardly mobile with social programs and education. Farsoun concludes by stating that challenging the existing class structures will be a slow process. Further, the four years since the Arab Spring began are not enough time for the dynamics that were uprooted during the protests and revolutions to settle back down into their new order. Paul Salem writes that “an increasingly informed, powerful, and demanding populace...have led to political changes in some countries” and have “put intense pressure on political and socioeconomic structures.” As with many societal constructs that have subjected people to oppression and limited opportunity, the pyramidal class structure is being challenged, with significant enough promise to warrant optimism for the coming decades. https://books.google.com/books? id=kLCR9zGH774C&pg=PA19&lpg=PA19&dq=pyramidal+class+structure+middle+east&source =bl&ots=TVVJG8TuER&sig=rBeliOaoGJpqecqDBDJy_SHgFeM&hl=en&sa=X&ved=0ahUKEwi CyuGnqN3JAhWFSCYKHYJZA_QQ6AEIHDAA#v=onepage&q=pyramidal%20class %20structure%20middle%20east&f=false http://www.countriesquest.com/middle_east/iran/people_and_society/social_structure.htm http://www.eden.rutgers.edu/~spath/385/Readings/farsoun%20%20class%20structure.pdf http://www.mei.edu/content/article/middleeast2015andbeyondtrendsanddrivers 5. A very interesting article titled “If OPEC Is a Cartel, Why Isn’t It Illegal?” makes some very good points regarding OPEC’s operations as an oil cartel. The first is that while cartels are illegal in the United States, U.S. foreign trade laws not only recognize OPEC as a legal entity, but also protect the organization. The article speculates that the U.S. would rather allow this cartel to continue having a strong hand over oil prices than upset the member countries by declaring their methods illegal or ceasing oil imports from OPEC countries. However, another article written by Steven E. Plaut says that OPEC is not a cartel, but is instead “an oligopoly, with Saudi Arabia as price leader and largest producer,” because OPEC has not fully tested its ability to restrict supply and allocate output (at least on a global scale). According to the U.S. Energy Information Administration, OPEC’s influence on oil prices has been less about politics or greed and more about balancing the spare production capacity and protecting supplies from regional instability and conflict. Regardless of technical definitions, OPEC does have significant influence on the world’s oil supply, as a cartel would of a given commodity. As of September 2015, there is evidence that OPEC is flexing its collective muscle with regard to nonOPEC oil producers. Andrew Critchlow of The Telegraph writes that “Oil produced outside [OPEC] is slowing at its fastest rate in 20 years,” especially in the North Sea, Russia, and the United States. OPEC has allowed oil prices to fall, placing pressure on other producers for whom drilling is more expensive and thus making it unprofitable to continue. This too is cartellike behavior. However, this is also weakening the influence of OPEC. Member nations are having a hard time adjusting their budgets to compensate for a nearly 50% drop in international oil prices in 2015, according to Benoit Faucon, Bill Spindle, and Summer Said of The Wall Street Journal. Since 1979, OPEC’s share of the oil market has fallen from more than half to around just one third. Adding insult to injury is China, who snubbed Saudi Arabian oil in favor of Columbia and Russia, according to the Houston Chronicle’s Chris Tomlinson. http://www.newsmax.com/Newsfront/opeccartelillegal/2009/12/12/id/341497/ https://www.eia.gov/finance/markets/supplyopec.cfm http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/11857902/Opecwinsas noncarteloutputsuffersbiggestdropin20years.html http://www.wsj.com/articles/opecspricingleverageisweakening1433117819 http://www.houstonchronicle.com/business/outsidetheboardroom/article/ChinasnubsSaudi oilinsignofweakeningOPEC5839797.php 6. GDP growth less than 1 percent per year. Decline in productivity. Deficient governments, war, culture clashes, religious struggles. These are just a few of the many factors leading to widespread economic reforms among Middle Eastern countries in the 1980s, according to Tarik M. Yousef. On top of these struggles was a huge oil boom that started after World War II. A boom that, like so many others, had to go bust. Yousef states that “strains appearing earlier in the decade had grown into a major economic crisis...declining oil prices, shrinking demand for migrant labor…[and a] more competitive international environment” led to growing public debts and prompted many countries to seek reform. Public expenditures and subsidies were slashed in countries such as Morocco, Tunisia, and Jordan. There was also widespread unrest in Egypt Morocco, Tunisia, Algeria, and Jordan that expressed discontent with governmentbusiness ties that endured while social programs suffered. The Carnegie Endowment for International Peace reports that during the 1990s, many countries in the region faced “slow and painful consolidation and restructuring” as well as decreasing the dependence of private sectors on government funds and subsidies. In 2000, Inder Sud wrote that countries such as Tunisia and Jordan worked in the aftermath of the 80s slump to reduce tariffs and increase exports by private industries to try and jumpstart the economy. This has worked in Jordan, whose exports totaled $13.1 billion in 2013, a huge increase from 1980’s $1.5 billion. In Iraq, war with Iran in the 80s led to massive expenditures that led to huge economic losses. It took nearly 20 years for oil production to return to normal. In the 21st century, agreements such as MEFTA and GAFTA have helped countries expand their ability to produce goods for export, falling in line with many of the plans put in place to combat the slump of the 80s. http://faculty.nps.edu/relooney/00_New_21.pdf http://carnegieendowment.org/sada/?fa=23359 http://www.meforum.org/190/spurringeconomicgrowthinthemiddleeastwhat http://knoema.com/UNCTADEIGS2014Jul/exportsandimportsofgoodsandservicesannual 19802013?location=1001060jordan https://en.wikipedia.org/wiki/Economy_of_Iraq#Recent_History http://finance.mapsofworld.com/economyreform/middleeast.html 7. Labor migration and remittances play a large role in the economic dynamics of many Middle Eastern countries, as well as in countries around the world. The question of whether the role is good or bad depends on how you look at it. For some, labor migration helps educated and/or skilled workers escape poor economies with little job opportunity. The remittances they send home come from jobs that pay better amounts of money than would the same job at home (sometimes). As the World Bank reports, remittance flows help the receiving country’s credit rating, leading to greater opportunities for development. Some downsides of that setup are skilled and educated workers leaving the country that in all likelihood desperately needs them, and takes away jobs from the citizens of the new country. The remittances sent home constitute money earned in one country but not spent or invested there; essentially, money lost from that country’s economy. Many Middle Eastern countries are the destination of billions of dollars of remittances each year, according to the Pew Research Center. Upwards of $53 billion was sent to just some of the major countries in the region in 2012, with over $68 billion leaving the same countries via remittances. It is clear to see why this has a large impact on the economies of these countries. In the U.S., we’ve grown a little numb to the idea of losing a few billion dollars here and there. However, for some of these tiny states, a few billion dollars can seriously impact the economy as a whole. Money being made and counted for within a country’s workforce, but not being spent there, is not putting anything back into that country’s economy, except for fees taken for the transfer itself. Forbes reports that two of the top three sources of remittances to India are United Arab Emirates and Saudi Arabia, totaling over $24 billion in 2012, with Kuwait, Oman, Qatar, and Bahrain sending another $8.6 billion. The World Bank also states that “conflicts in the region are resulting in international displacement and force migration across borders...a major risk factor to the outlook for remittances in the region.” http://www.pewsocialtrends.org/2014/02/20/remittancemap/ http://www.forbes.com/sites/alyssaayres/2014/02/26/indiasstakesinthemiddleeast/ http://www.worldbank.org/en/news/pressrelease/2015/04/13/remittancesgrowthtoslow sharplyin2015aseuropeandrussiastayweakpickupexpectednextyear 8. Not only was the Gulf War and invasion violent and bloody for the tiny nation of Kuwait, but the economic impact of the war was widespread for both Kuwait and invading Iraq. As reported by the International Monetary Fund, during the conflict both countries’ public spending skyrocketed. The means of production (mainly oil, but other industries as well) were diminished if not outright destroyed, leading to a near collapse of exports. Imports were also affected, as was the production of goods domestically, causing shortages of supplies and inflation. Another prime example of how conflict can affect the economy is the current civil war in Syria. America Abroad reported on Syrian refugees, particularly young men, who have fled to neighboring Lebanon in search of any work that will pay. Because of the large influx of workers into the country, jobs such as construction have begun to pay less and less and placed less emphasis on safety. As far back as 2013, refugees accounted for nearly a quarter of all people in Lebanon, according to the World Bank. However, the problem is whether Lebanon’s “resource poor, debtridden and cashstrapped” economy could handle this many people crossing its borders in such a short time period. The World Bank also relates that though Lebanon already has a large fiscal deficit, the government is still being forced to expand public services to try and meet the demands of not only the Lebanese, but now too the Syrian refugees, who are accused of taking jobs from Lebanese who have already been dealing with high unemployment. https://www.imf.org/external/pubs/ft/wp/2014/wp14100.pdf http://americaabroadmedia.org/radio/youtharabworldafterrevolution http://www.worldbank.org/en/news/feature/2013/09/24/lebanonbearsthebruntofthe economicandsocialspilloversofthesyrianconflict 9. Patrilineal: “of, relating to, or based on relationship to the father or descent through the male line.” This is quite apparent in many circles of Middle Eastern society. In many countries, Iraq and Saudi Arabia especially, men by far have more privilege and power than women, even in familial matters like inheritance, marriage, and even travel and commerce. Patrilineal and patriarchal practices mix sometimes with endogamy, which is the practice of marrying within a specific group (ethnic, religious, patrilineal, etc.), as some women marry patrilineal cousins in order to continue a certain family line. Hierarchical practices honor elders and heads of families, due in part to a significant emphasis on the family and respect and honor for the family name. A result of this emphasis on honor for the family is the extended family, in which many people not part of the immediate family share a household, such as grandparents, aunts, uncles, and cousins. This is common in the Middle East not only out of reverence for family ties, but sometimes also out of economic necessity. http://www.economics.uci.edu/~dbell/nomadicevolution.pdf http://www.kwintessential.co.uk/culturalservices/articles/middleeast.html https://en.wikipedia.org/wiki/Extended_family 10. OPEChas a significant influence on oil prices mainly because they control the supply of a lot of the world’s oil, around 60% of the global trade, according to the U.S. Energy Information Administration. Every two years, leaders from OPEC’s member countries meet to set quotas for production, as reported by The Telegraph. The lower the quota and the less oil produced, the higher the price will be to countries like China, the UK, and the US, who import the oil. OPEC’s power over oil prices also depends on factors such as demand. Russia, China, and the US have been seeking different sources for their oil, such as domestic drilling or other, nonOPEC countries such as Colombia. These countries breaking away from dependence on oil means that some of the largest consumers are no longer demanding OPEC oil, therefore the price is dropping as production has not necessarily slacked off as well. Further, US production in particular is worrisome for OPEC, because of the ability of US shale oil to be produced at a much lower rate than OPEC is willing to sell their oil for, making it uneconomical for OPEC countries to try and compete with increased US oil production, as explained by Hailey Lee of CNBC. https://www.eia.gov/finance/markets/supplyopec.cfm http://www.telegraph.co.uk/finance/oilprices/11259365/HowOpecsetsoilprices.html http://www.cnbc.com/2014/10/27/usshalereplacesopecasleadingswingproducer goldman.html 11. When thinking of rentier states in the Middle East, prime examples are the gulf oil states that emerged within the last halfcentury. These include Saudi Arabia, UAE, Iraq, Iran, Kuwait, Qatar, and Libya. In these states, the economy is so engulfed by producing oil for export to foreign countries for foreign money that domestic taxation accounts for little to no part of the total revenue that state takes in. The problem with this is that the foreign states who buy massive amounts of oil now have political and economic clout over the exporter. The citizens of the exporter are given even less power to sway the government, as their tax contributions are easily enough made up by foreign export revenue. Yasser Aboraya explains that in these states, there is not enough taxation for the citizens to call for more representation; in 2011, Algeria even cut the food tax, and Saudi Arabia does not collect income tax. One consequence that may be seen as a good consequence is that oil is good business, generally. Saudi Arabia in particular has been able to amass so much oil wealth that they were able to spend an additional $136 billion in 2011 just on social programs such as wage increases, subsidies for housing, and unemployment benefits. Kuwait also was able to be incredibly generous with their wealth, giving out actual cash to citizens and over a year of food stamps. https://prezi.com/ttz5q2yjcqzb/rentierisminthemiddleeast/ https://en.wikipedia.org/wiki/Rentier_state 12. While there are many factors that may influence or exacerbate the development of statist economic policies, three in particular are crucial in this occurrence. The first is the belief in and practice of state capitalism. In this ideology, the private sector is viewed as parasitic, but the state can be trusted to control the means of production. A second factor which results almost directly from the practice of state capitalism is nationalization, or the establishment of parastatalsstate owned or controlled corporations. Examples of this are the Iranian national oil company and airline. By controlling a large industry or industries, the state is able to control a larger and larger share of the economy. A third crucial factor in the development of statism is the pursuit of rentseeking policies. In rentier states, exports to foreign countries make up a significant portion if not a majority of total government revenue. Such is the case in the oil states of the Persian Gulf. These activities require low productivity domestically but create high profit for the state; monopolies often arise within the nation and tend to lean toward nationalization so that the state is the sole producer and beneficiary of rentierism. When combined, all three of these factors characterize the ideals of statism. https://books.google.com/books? id=daHVAAAAQBAJ&pg=PA350&lpg=PA350&dq=statism+in+the+middle+east&source=bl&ots =PDJlkUJ1eW&sig=hMnqtaNxgJgnGCqHQx6WYGjj5yA&hl=en&sa=X&ved=0ahUKEwjvsI2Qsd _JAhUsjIMKHZmwAK4Q6AEIKzAC#v=onepage&q=statism&f=false
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'