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The paper "Causes of Poverty in Saudi Arabia" is a perfect example of a macro & microeconomics case study. Saudi Arabia is among the richest countries in the world. The economy depends on oil, and the economy is growing continuously while the reputation of extravagance and in some instances, excess has been documented…
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Causes of Poverty in Saudi Arabia
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Saudi Arabia is among the richest countries in the world. The economy depends on oil, and the economy is growing continuously while the reputation of extravagance and in some instances, excess has been documented. However, if an individual looks beyond the glittery high rises, upscale malls, luxury SUVs, a different image of unemployment and poverty is seen. The problem of poverty lacks acknowledgment or reluctance of acknowledgment by the Saudis. The imagines of Saudis on television and other media platforms indicate luxury lifestyle in deserts environment but outside the main cities, poverty has affected many people. What are the causes of the poverty experienced in some of the areas of Saudi Arabia? Is it associated with discrimination? Unemployment? Lack of acknowledgment of the problem?
Discrimination is the major problem. The discrimination comes from different areas ranging from gender to infrastructural developments (Atinmo et al., 2009). The women have no or minimal rights, especially when divorced or widowed. Saudi Arabia values men and men have the rights to dictate the movement of the community and society. However, the widowed and divorced lack the male who would have provided appropriate assistance (Farooq, 2008). Therefore, gender discrimination has increased the levels of poverty because a single person within the community is required to care for many children (Ramady, 2010). In addition, the women lack access to appropriate education and other resources, which limits their respective abilities to generate sustainable income (Alyousef & Stevens, 2011). The women are forced to do menial jobs or establish the small business, which cannot fulfill the requirements of the families.
Discrimination in terms of societal level organizations creates additional opportunities for advancing poverty in the society and community (Alyousef & Stevens, 2011). The people of Saudi Arabia can be viewed from two angles: the rich who rule the country and the others who work towards fulfilling the requirements of the rich (Atinmo et al., 2009). For example, the succession leadership limits the opportunities resulting in one family or societal level sharing the benefits of the entire economy (Taleb & Sharples, 2011). Resource discrimination and inequality results in the reduction of opportunities for advancement and only a few in the society are able to advance (Farooq, 2008). The investments are also done in selected regions depending on the requirements and expectations of the rulers. Through such process, resources are controlled resulting in poverty or creating conditions favorable to the occurrence of poverty.
Change is important in the society and community. The world is changing at a faster rate because of globalization and advancement of technology (Taleb & Sharples, 2011). However, Saudi Arabia has implemented policies and legislations, which inhibits change. For example, girl education has not been seen important for some sections of the society: especially, the lower in social status (Alyousef & Stevens, 2011). In addition, women are not allowed to participate in certain income generating activities (Ramady, 2010). The women have to play their respective roles in the society, but the roles limit the flexibility and ability of income generation. For example, women are “not allowed to work” while the rest of the world understand the value of educating women and giving opportunities to women (Atinmo et al., 2009). Research has shown that an educated woman improves the living condition of the society (Taleb & Sharples, 2011). An educated woman understands the importance of health systems, an importance of healthy diet and other importance factors that contribute to the effectiveness of the society. However, the lack of change and embracement of change limits these benefits resulting in complications to the women and by extension, the society.
Lack of acknowledgment of change can also be associated with poverty. Saudi Arabia as a community understands the importance of pride, and some of the people in Saudi Arabia do not want to discuss anything about poverty. The people do not acknowledge poverty. Acknowledgment of a problem is the starting point of addressing the issue (Atinmo et al., 2009). Understanding the causes of the problem contributes towards determining the appropriate strategies and methods to address the problem. However, Saudi Arabia stills hides the poverty issue meaning that solutions cannot be introduced (Ramady, 2010). The secrecy associated with poverty also means that the extent of the problem cannot be identified. The lack of acknowledgment can also be associated with ignorance (Taleb & Sharples, 2011). Ignoring the problem allows postponement of the problem rather than seeking a solution to the problem (Farooq, 2008). Ignorance does not create an environment to address the problem but allows worsening the problem (Atinmo et al., 2009). Lack of acknowledgment and ignorance has contributed to worsening levels of poverty in Saudi Arabia.
In Saudi Arabia, corruption is widespread. It comes in different forms including patronage system, the use of intermediaries and nepotism (Alyousef & Stevens, 2011). The royal family and Saudi government have been continuously accused of corruption. In fact, the country is named after the royal government and may be seen as “belonging” to the royal family (Farooq, 2008). Therefore, differentiating between personal wealth and state assets becomes blurred. The corruption problem is endemic and systematic. Even though the problem has not been documented, the problem contributes to worsening of the situation (Atinmo et al., 2009). Corruption undermines democracy and sharing of resources and other state products. For example, through corruption, state resources are used to favor a given segment of the society (Taleb & Sharples, 2011). Therefore, corruption undermines democracy and reducing the spaces of democracy contributes to frequency or occurrence of poverty.
Saudi Arabia is a Middle East country, and most of the country follows Islamic teachings (Ramady, 2010). Apart from some contents in the Islamic religion, the cultural requirements limit the use of resources and creation of opportunities to advance the requirements of the citizens (Taleb & Sharples, 2011). It is not wrong to follow religious and other teachings, but it is also important to understand the importance of the culture relative to religious dispensation (Alyousef & Stevens, 2011). Some of the contents of the religion are used to advance some cultural practices, which limits wealthy generation (Atinmo et al., 2009). For example, limiting education and use of religion as means of prohibiting some businesses and practices reduces employment opportunities. In addition, women are not allowed to work without the directive permission from their husbands. Women who work are frowned since the culture of the society is the place of a woman is in the house: kitchen (Farooq, 2008). The culture limits exposure to the world, which also translates in limiting the opportunities. Hence, culture and religious sediments have contributed to limiting the resource allocation and wealth creation resulting in problems associated with poverty.
In conclusion, the causes of poverty in Saudi Arabia are complex and numerous. Poverty cannot be seen as a matter of fate, rather it can be associated with policies and realities. Therefore, replacing the policies and changing the realities may result in ending or reducing levels of poverty. Discrimination, corruption, lack of resource equity, cultural constraints and ignorance are the example of causes of poverty in Saudi Arabia. The policies that contribute to worsening poverty levels are also attributed to the creation of job opportunities, skewed investments, the perception of state resources, and limitations of investment. Other causes may not be direct, but these major causes can contribute to the worsening of the poverty levels in Saudi Arabia. Reduction of poverty is easier and depends on the direction and approaches of the government and involvement of the citizens in democratic environments.
References
Alyousef, Y., & Stevens, P. (2011). The cost of domestic energy prices to Saudi Arabia. Energy Policy, 39(11), 6900-6905.
Atinmo, T., Mirmiran, P., Oyewole, O. E., Belahsen, R., & Serra-Majem, L. (2009). Breaking the poverty/malnutrition cycle in Africa and the Middle East. Nutrition Reviews, 67(suppl 1), S40-S46.
Farooq, M. O. (2008). The challenge of poverty and the poverty of Islamic economics. Journal of Islamic Economics, Banking and Finance, 4(2), 35-58.
Ramady, M. A. (2010). The Saudi Arabian economy: Policies, achievements, and challenges. Springer Science & Business Media.
Taleb, H. M., & Sharples, S. (2011). Developing sustainable residential buildings in Saudi Arabia: A case study. Applied Energy, 88(1), 383-391.
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