Living in North Africa, SW & Central Asia Economies of the Region
Food • Challenge to meet needs of rapidly growing population, w/ little resources • Saudi Arabia can buy food with oil $ • Afgh. can only grow sm. amt of food (poor soil) • Israel has great climate & grows/exports lots Afghanistan
Agriculture • Strangely, there is such little arable land, but majority of jobs are in agriculture • They learn to adapt… – When Med. countries face a drought they just farm more hardy foods (wheat, barley, etc)
Usable Land • Egypt has least amount of usable land • Morocco & Turkey seem to have most • Most countries with little arable land compensate with herding
Usable Land • To make up for little usable land countries may: – Have intensive irrigation (some drain seas ) – Mining industries – Focus on other industries like oil…
Oil • Oil is, by far, most impt. commodity – 70% of world’s oil, 33% of world’s nat. gas • Industries using oil: – Refining & shipping – Steel, textiles, electricity production – Petrochemicals (fertilizers, medicines, plastics, & paints)
Service Industries • GDP = gross domestic product – Value of goods & services produced in country per year • Bahrain is 60% service industry – Banking, real estate, insurance – Highest GDP – High HDI b/c it spends its $ on social services & needs as well
Service Industries Western Wall in Jerusalem • Tourism is huge b/c: – Religious importance – Historical importance – Mediterranean climate/beaches • Tourism limitations – Iran limits # of tourists to decrease western influence – Regional conflicts discourage ppl from coming (not safe)
Transportation • Most waterways connected with straits & gulfs – Strategic and economic value – Almost all oil exports sent thru waterways ($$) – Vast # of pipelines to carry oil over land to coasts
Communications • Problems: – Too much government control – Lots of deserts and mountains – Lack of satellite/cellular service in rural areas • The New Silk Road – Telecommunications highway built over old Silk Road route • Cable for 20 countries; 16, 767 miles • TRACECA- road, rail, & air system
OPEC Organization of Petroleum Exporting Countries • 13 members • Can restrict/limit amount of oil • Can raise oil prices • Can enact embargos (All have been done to U. S. )
Interdependence is Key They provide oil and other industrial goods; others provide foreign aid, trade deals, loans, & food goods. Despite our political disagreements, we cannot live without one another