The Middle East is one of the most fascinating and diverse regions on earth. When many people think of the Middle East, they think of modern cities like Dubai, or the riches of countries like Saudi Arabia and Qatar. However, 18.6 million people across the Middle East live in poverty. Although the region is blessed with natural resources, it has some of the poorest countries in the world.
So, if the Middle East could be so rich… why is it poor?
1. Conflict
A first reason why the Middle East is poor is because of the many wars the region has faced.
Since 1950, there have been 71 conflicts in the Middle East. Major wars, including the Syrian and Libyan Civil Wars, the Iran-Iraq War, Lebanese Civil War and US invasion of Iraq have all cost hundreds of thousands of lives and caused enormous destruction. Countries in the region have also seen more protracted and localised conflicts, such as the Israeli-Palestine Conflict and the Islamicists fighting from the Sinai desert. These have also caused extensive loss of life.
Wars make countries poor. Conflicts force people to flee their homes and businesses. They also pull people away from jobs to fight. Infrastructure and businesses are destroyed in the fighting and economic resources are dedicated towards the military, rather than public services. The extent of conflicts across the Middle East is a major reason why the region is poor.
The Middle East has a turbulent history and almost all countries in the region have seen wars in their recent past. This has prevented their economic growth and stopped many of them from becoming prosperous.
2. Authoritarian Governments
A second reason why the Middle East is poor is the authoritarian regimes that govern most countries in the region.
No countries in the Middle East, except for Israel, are classed as democracies. People in almost all Middle Eastern countries lack basic freedoms including freedom of speech, assembly and of the press. Democratic systems and human rights help make a country wealthy as they allow economies to become more dynamic and markets to adjust better to peoples needs.
The lack of democracy, and the repressiveness of regimes in the Middle East, is a major reason why the region is poor. Governments in the Middle East lack accountability. They have also failed to create inclusive political and economic systems, meaning their institutions lack transparency and efficiency. This makes a country poor as the government is less able to direct resources where they are needed, and more revenue is lost to corruption.
The authoritarian regimes of the Middle East are an important factor in why the region is not as wealthy as it should be.
3. Mismanagement of Natural Resources
Another reason why the Middle East is impoverished is because of the mismanagement of natural resources.
The Middle East is incredibly rich in natural resources. As well as some of the world’s largest oil reserves, many Middle Eastern countries have huge amounts of natural gas and phosphate. The Middle East has the potential to be the richest region in the world. However, many countries in the region have been unable to spread the wealth their natural resources have created to benefit their populations.
The majority of the wealth generated by natural resources in the Middle East is held by a small elite in the region. Very few countries in the Middle East have been able to use their natural resources to create dynamic economies. This has meant that the wealthy economies of the region have remained almost entirely based on resource extraction. The riches of the oil and gas in region has not been evenly shared. This has kept millions of people across the Middle East in poverty.
If the Middle East is to become wealthy, and lift much of its population out of destitution, the wealth generated by natural resources needs to be more evenly shared.
4. Colonialism
A further reason why the Middle East is poor is the legacy of colonialism.
Much of the Middle East was part of the Ottoman Empire from around 1450. The Ottomans controlled most of the region until the fall of the empire after the First World War. From the 1920s onwards, almost the entire Middle East was ruled by European powers. The Middle East was not free from centuries of colonial rule until relatively recently. This is a major reason why it is poor today.
Colonialism is inherently extractive. Powers that rule over a colonial territory extract resources and labour at below market rates. They also often invest little into a country aside from what is needed to extract wealth from it. The legacy of the colonialism in the Middle East meant the region was underdeveloped economically when many countries gained independence.
Another legacy of colonialism in the Middle East that has resulted in the region being poor today is the arbitrary borders of many countries. European colonists created the borders of many Middle Eastern countries. These were drawn with little regard for ethnic, cultural, religious, or geographical differences. The modern borders of the Middle East have resulted in political instability, conflicts, poor economic performance, and difficulties in establishing democracies. These factors have all kept the Middle East poor.
5. Corruption
Corruption keeps a country poor. The Middle East has some of the most corrupt countries in the world This is a major reason why the region is impoverished.
Middle Eastern countries such as Iraq, Syria, and Yemen rank among the worst countries in the world for corruption. However, even more wealthy countries in the region, such as Egypt, Jordan, and Lebanon, still have significant problems with corruption. All levels of government institutions, and many businesses, across the Middle East are riddled with corruption. This keeps many countries in the region poor.
Corruption is a major factor in why countries remain underdeveloped. It means that resources are syphoned off and the government becomes unable to effectively deliver services. It also makes infrastructure projects more expensive, which reduces the government’s ability to build what is needed for the country to develop. Nepotism means jobs go to people with connections, as opposed to the best people for the job. This greatly reduces the efficiency of government departments and businesses.
The widespread and endemic corruption across the Middle East is one of the biggest reasons why the region is poor.
6. Geography
Another reason why the Middle East is poor is because of the region’s geography.
The Middle East is famous for being mostly desert. However, the region also has few natural barriers between countries – such as mountains. The Middle East also lacks navigable rivers – apart from the Nile, Euphrates, and Tigris. Many parts of the Middle East lack waterways that can be used for defence or movements of people or goods.
Geographical features are key to many nations being successful. Before the modern age, they were vital for defining the boundaries of a state, defending a country, and moving people and goods around. The geography of the Middle East meant that it was harder for coherent nations to form.
Today, much of the geography of the Middle East can be overcome with modern technology. However, regions with worse geography often lag behind more developed parts of the world. The topographical features of the Middle East are a key factor in why the region has struggled to become wealthy.
7. Inequality
A final reason why the Middle East is poor is because of the inequality of the region.
Many Middle Eastern countries are among the most unequal in the world. Although there is great wealth, this is held by a small group of elites. Almost all Middle Eastern countries have failed to create dynamic economies where the riches generated can be shared widely. Many in the Middle East live in poverty and although there is enormous wealth, this is unequally distributed.
The Middle East as a region is highly unequal. As well as inequality within almost all the countries of the region between rich and poor people, there is also great differences between the wealth of different countries. States such as the Saudi Arabia, the United Arab Emirates and Qatar are generally developed and prosperous. However, countries such as Iraq, Syria, Lebanon, Egypt, and Jordan suffer from extreme poverty and have widespread destitution. The Middle East has not been able to create an interconnected and co-dependent economy that would allow all the nations of the region to become wealthy.
The Middle East is one of the most unequal regions in the world and this is one of the biggest reasons why it is poor.