Economic Geography of SW Asia SSWG 6 Examine

Economic Geography of SW Asia SSWG 6 Examine the spatial distribution of major economic systems and analyze the role geography plays in economic development. .

The Arabian Peninsula

Main resource = oil Region grew more important as oil became more important Economics in the Arabian Peninsula GDP largely oil sales Revenue from oil sales used to develop other parts of economy Water development projects

Organization of Petroleum Exporting Countries (OPEC) Formed in 1960 Coordinate policies on selling petroleum projects Control worldwide oil prices Adjust oil prices & production quotas Powerful force in international trade

Increase in urbanization as economy develops Change to Urban Life 2/3 of population live in cities Upgrading education to meet systems to meet needs of technological age Skilled workers

The Eastern Mediterranean

Newly independent nations = many economic problems Economic Problems Political divisions, refugees, lack of water, weak infrastructure = weak economies

Israel – modern infrastructure & irrigation Modern Infrastructure Good climate to produce/export crops & tourism Good location to international markets Poor infrastructure Destroyed roads, little irrigation, weak communication & power systems = cannot develop high-tech industries

The Northeast

Limited agricultural land Reforming Economies Efficient production in order to produce surplus crops for export Oil & natural gas reserves = revenue Update transportation, communication, power, water & sanitation systems

Making progress in modernizing economy Progress in Turkey Developing water resources & hydroelectric energy Boost production of cotton & other agricultural products #1 steel producer in region Ideal location for trade

Iraq Afghanistan Political problems & war limits development Progress Interrupted Political problems & war limits development One of poorest nations in world Rebellion against U. S. forces & religious conflicts Most profitable crop = opium Oil drilling & shipping interrupted Lacking food, medical supplies, electricity, gas Great mineral resources but war stopped development of these Corrupt government & potential for Taliban to regain power

Significance of Oil in SW Asia

Meeting the Global Demand Oil is strategic commodity – resource so important nations will go to war to ensure its steady supply SW Asia has ½ world’s oil deposits & 1/3 natural gas reserves Oil increasingly in demand Unpredictable rise & fall of cost of oil = difficult to have steady economic growth

Cannot base economies purely on oil b/c unpredictable prices Using Oil Wealth to Diversify 3 challenges to using oil profits Modernize infrastructure Develop agricultural, mineral, & water resources Higher education & job training

Using Oil Wealth to Diversify – Modernizing Infrastructure Build new roads & irrigation Desalinization plants – remove salt from seawater for city & industrial use Building information technology systems to conduct online businesses

Using Oil Wealth to Diversify – Developing Resources Develop resources besides oil Oil profits used to develop other resources Arid climate = little agriculture = building of irrigation (i. e. dams) Ex. Saudi Arabia – agricultural products to grow wheat

Using Oil Wealth to Diversify Human Resources = skills & talents of people/employees Nations realizing must invest in all people, including women Providing education & technology training Shortage of workers opening opportunities for women