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Critical Thinking #2 - Essay Example

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For instance, the Iranian economy majorly depends on the wealth that is generated by oil. It should be noted that oil is the major…
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Critical Thinking Essay #2
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Critical Thinking #2

Download file to see previous pages... Although the industry does not own provide a very huge share of the nation’s national product, it is greatly contributes to the budget of the government, and besides, it is the factor behind the huge economic growth of Iran (Karl, 1997).
The export of oil is the main source of direct revenue for the Middle East nations governments taking into account their lands are desert. Moreover, it also provides indirect revenue through the taxes that are levied on imports as well as several other activities that are financed by the money from oil and besides, foreign exchange be also earned. All these are beneficial as they maintain other sectors within the economy of the Middle East countries (Karl, 1997). In addition, agriculture is also dependent on imports that are financed by oil; hence, Middle East nations’ food supply is alleged to rely on imports. However, food supply also depends on the annual rainfall as well as several other conditions.
Despite the number of benefits brought about by oil, in Iran, for instance, the nationals of the country have lived to be haunted by its discovery. Thus, the presence of oil reserves in the Middle East affects the states economically, politically, as well as socio-culturally but the sector, which is highly affected, is the nations’ political economy. Insecurity is also brought about by the presence of oil; similarly, oil has made Middle East to be vulnerable to interferences from the foreign nations, leading to the damage of the historical development of the nations in Middle East (Henry & Springborg, 2001). Monetary resources within the region have greatly been increased by the discovery of oil in the nation. Because the region is endowed with numerous resources, the problem of allocating the fund also comes up.
Foreign Super-powers always intervened in Middle East nations that have too much oil and tend to manipulate their governments. Moreover, international oil firms always aim exploit oil ...Download file to see next pagesRead More
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