Economic Systems of Economic Systems of the Middle Eastthe Middle East

There are many different types of There are many different types of economic systems in Southwest Asia. economic systems in Southwest Asia.

Many countries have mixed economies Many countries have mixed economies with different levels of government with different levels of government control. control.

Some countries are less developed than Some countries are less developed than others in the region. others in the region.

Southwest Asian countries have thrived Southwest Asian countries have thrived on producing exports to other countries. on producing exports to other countries.

Cash crops have included grain, silk, Cash crops have included grain, silk, and cotton. and cotton.

For the last sixty years, the region’s For the last sixty years, the region’s main export has been oil. main export has been oil.

The region imports much of its food The region imports much of its food and other essential products.and other essential products.

Israel’s Economic SystemIsrael’s Economic System

Israel has a mixed economy that is Israel has a mixed economy that is also technologically advanced. also technologically advanced.

The Israeli government and private The Israeli government and private Israeli companies own and control the Israeli companies own and control the economy. economy.

Israel does not have many natural Israel does not have many natural resources. resources.

Israel has to import grain, oil, military Israel has to import grain, oil, military technologies, and many other goods. technologies, and many other goods.

Israel’s Economic SystemIsrael’s Economic System

The country is a producer of high-The country is a producer of high-tech equipment, some crops, and cut tech equipment, some crops, and cut diamonds. diamonds.

The service industry accounts for The service industry accounts for much of Israel’s economy—areas much of Israel’s economy—areas such as insurance, banking, retail, such as insurance, banking, retail, and tourism account for over half of and tourism account for over half of it. it.

Israel relies heavily on U.S. economic Israel relies heavily on U.S. economic and military aid.and military aid.

Saudi Arabia’s Economic SystemSaudi Arabia’s Economic System

Saudi Arabia also has a mixed Saudi Arabia also has a mixed economy. The government largely economy. The government largely controls the economy.controls the economy.

Saudi Arabia’s main export is oil. Saudi Arabia’s main export is oil. The oil industry has made the Saudi The oil industry has made the Saudi

royal family quite wealthy. royal family quite wealthy.

Saudi Arabia’s Economic SystemSaudi Arabia’s Economic System

In fact, several members of the royal In fact, several members of the royal family are among the wealthiest family are among the wealthiest people in the world. people in the world.

Oil accounts for well over half of the Oil accounts for well over half of the country’s economy. country’s economy.

Oil funds the country’s education, Oil funds the country’s education, defense, transportation, health, and defense, transportation, health, and housing.housing.

Turkey’s Economic SystemTurkey’s Economic System

The government of Turkey controls the The government of Turkey controls the country’s economy. country’s economy.

Turkey’s economy, however, is not entirely Turkey’s economy, however, is not entirely a command economy. a command economy.

A large part of the country’s economy is A large part of the country’s economy is based on farming. based on farming.

The Turkish government has had many The Turkish government has had many disputes with other countries over its use disputes with other countries over its use of natural resources, such as the of natural resources, such as the Euphrates River. Euphrates River.

Turkey’s Economic SystemTurkey’s Economic System

Clothing and textiles are the country’s Clothing and textiles are the country’s major industries. major industries.

The service industry makes up about half The service industry makes up about half of Turkey’s economy, as it does Israel’s of Turkey’s economy, as it does Israel’s economy. economy.

The entrepreneur Aydin Dogan controls The entrepreneur Aydin Dogan controls the largest oil and gas company in Turkey, the largest oil and gas company in Turkey, as well as two television networks and two as well as two television networks and two newspapers. newspapers.

Such entrepreneurs are new to Turkey.Such entrepreneurs are new to Turkey.

Israel’s Economic GrowthIsrael’s Economic Growth Economic growth has been difficult to Economic growth has been difficult to

achieve for many Middle Eastern countries. achieve for many Middle Eastern countries. War is a major threat to the region’s War is a major threat to the region’s

economies. economies. For example, both war and a large number For example, both war and a large number

of immigrants present challenges to the of immigrants present challenges to the Israeli economy. Israeli economy.

The Israeli government has taken control The Israeli government has taken control of certain economic activities in order to of certain economic activities in order to address these problems. address these problems.

The Israeli government controls most The Israeli government controls most activities related to agriculture.activities related to agriculture.

Turkey’s Economic GrowthTurkey’s Economic Growth

In the last century, the Turkish In the last century, the Turkish government has played a major role government has played a major role in helping its economy to grow. in helping its economy to grow.

After World War I, the Turkish After World War I, the Turkish government invested large amounts government invested large amounts of money in Turkey’s weapons and of money in Turkey’s weapons and steel industries. steel industries.

Turkey’s Economic GrowthTurkey’s Economic Growth

After World War II, many people After World War II, many people objected to the Turkish government objected to the Turkish government having so much control over the having so much control over the economy. economy.

By the 1980s, the government had By the 1980s, the government had begun to allow private businesses begun to allow private businesses more control. more control.

Today, entrepreneurs play an Today, entrepreneurs play an important role in Turkey.important role in Turkey.

Saudi Arabia’s Economic GrowthSaudi Arabia’s Economic Growth

Some gulf countries invest money to Some gulf countries invest money to make their economies more diverse. make their economies more diverse.

In the last few decades, Saudi Arabia In the last few decades, Saudi Arabia has begun encouraging the has begun encouraging the development of industries other than oil development of industries other than oil in order to make its economy stronger. in order to make its economy stronger.

In 1976, the Saudi government created In 1976, the Saudi government created the Saudi Basic Industries Corporation. the Saudi Basic Industries Corporation.

Saudi Arabia’s Economic GrowthSaudi Arabia’s Economic Growth

The Saudi Basic Industries The Saudi Basic Industries Corporation invests in capital goods. Corporation invests in capital goods.

These capital goods have made the These capital goods have made the country a steady producer of steel, country a steady producer of steel, industrial gases, plastics, and industrial gases, plastics, and petrochemicals.petrochemicals.

Natural ResourcesNatural Resources

The natural resources of a country can The natural resources of a country can affect economic growth. affect economic growth.

Most Southwest Asian economies were Most Southwest Asian economies were once based on farming. once based on farming.

When oil was discovered, it became the When oil was discovered, it became the main source of money for many countries main source of money for many countries in the region. in the region.

Governments with large oil reserves Governments with large oil reserves stopped investing in other parts of their stopped investing in other parts of their economies. economies.

Natural ResourcesNatural Resources

Countries in the Southwest Asia that do Countries in the Southwest Asia that do not have oil are often poorer than not have oil are often poorer than countries that do. countries that do.

The region has many deserts and The region has many deserts and mountains and few rivers. mountains and few rivers.

This physical makeup causes it to be more This physical makeup causes it to be more difficult to produce and transport goods. difficult to produce and transport goods.

Countries often spend money made from Countries often spend money made from exporting oil on imports of items that are exporting oil on imports of items that are not available in the region.not available in the region.

SummarySummary

Describe the different economic Describe the different economic systems and potential of growth for systems and potential of growth for Israel, Saudi Arabia and Turkey.Israel, Saudi Arabia and Turkey.