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place beyond official record and are not subject to formalized systems of regulation or remuneration. FIGURE 16 Nationalization of Oil Industries in Middle East This image of the Iranian flag next to an oil refinery illustrates the important link between national identity and oil production in the region. While Iran briefly nationalized its oil industry in the 1950s, it was not until 1979 that the new Islamic Republic nationalized the oil industry in the country for the long-term. The nationalization of oil production in Iran led to the end of British and U.S. corporate control of the oil industry in that country. Despite attempts to nationalize key industries, many states in the began to turn away from nationalization as their economies stagnated, standards of living declined, and national debt skyrocketed in the 1960s and 1970s. Pressured by the International Monetary Fund (IMF), the World Bank, and the U.S. Agency for International Development, who were lending these countries money, many states were forced to privatize multiple sectors of their economies and open up their markets to free trade. Eventually, nationalized economic systems and import substitution policies were dismantled in favor of global free trade. These changes resulted in increasing costs of food and basic necessities, cuts in spending on social programs, and reductions in public sector investment. Urban workers, government bureaucrats, and people on fixed incomes strongly felt the impact of these changes. In theory, the rural peasantry was to benefit most from these policies, especially the opportunity to market crops more freely. However, corporate farmers became the main beneficiaries of these economic changes, as they were able to buy up land and use mechanized agricultural practices to reduce labor costs. These changes put into motion a whole new set of forces that lowered the living standards of both urban workers and peasants. These processes also pushed rural people to move into the cities to find employment. When they arrived, they were often confronted with decreased public services, not only in terms of schools and health care but also in terms of the most basic necessities, such as housing and clean water. As a result, many people, who continue to migrate to cities today, are forced to live in squatter settlements without sanitation and eke out a living in the informal economy economic activities that take The Oil States A number of countries in this region derived much of their wealth from oil, including Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. These so-called oil states are pivotal in the global economy for at least two reasons. First, much of the rest of the world is highly dependent on them for oil. Without oil from the oil states, the ability of a large portion of the globe to maintain productive economies would be severely hampered. Second, the impact of petrodollars revenues generated by the sale of oil is especially significant for the global economy, particularly the economies of Europe, North America, and East Asia, where they are spent, invested, and banked. The oil states of the Middle East are likely to continue to occupy a central role in the affairs of the region as well as the world, where guaranteeing a secure supply of oil is absolutely central to the smooth functioning of the global economy. However, a nearly exclusive dependence on oil production in the oil states, particularly in the Persian Gulf region, leaves their economies highly vulnerable to fluctuations in the demand for oil. Recognizing this, some of the oil states have begun to diversify their economies through tourism, trade, and urban development. Saudi Arabia, for example, established a plan to build four new Economic Cities to attract foreign investment into the country. One of the planned cities is named Knowledge Economic City, and aims to attract information industries to the country. These projects are a long way from completion, but they suggest how the region might respond to the changing nature of the energy economy over the next 20 years (Figure 17). Some countries are also attempting FIGURE 17 Knowledge Economic City in Saudi Arabia Countries throughout the region are trying to diversify their economies to lessen their reliance on oil revenues. The government of Saudi Arabia has increased investment in a number of planned cities, in hopes of luring international businesses and providing job opportunities for the local population.

to introduce new industries, such as textile production and food processing plants. Some are developing port facilities. Still others are resuscitating or introducing agriculture, though the scarcity of water makes irrigation an enormous technological challenge for all of these countries except for Iraq and Iran. The Eastern Mediterranean Crescent The Eastern Mediterranean Crescent, made up of Egypt, Turkey, Lebanon, and Israel, has the potential to be a different kind of economic success story. Similarities are striking among the four states. For instance, all four possess more of a European orientation than many of their neighbors, certainly more so than the oil states. All four have a sizable middle class. And all four have the potential, because of their resource endowments, to continue building a diverse economic base. There are also, of course, differences among these four countries; the most striking exist between Israel and the other three states. For example, Egypt, Turkey, and Lebanon have had strong agricultural bases for hundreds, if not thousands, of years (Figure 18). Israel s commitment to agriculture is more recent. The former three use agriculture as a major source of export revenues, but for Israel, agricultural production is more about achieving national food security (although FIGURE 18 Harvesting Cotton in Southeastern Turkey Much of Turkey s climate is conducive to agriculture, and the country contains numerous farming regions. Cotton is a major export crop; Turkey is also the world s largest exporter of sultana raisins and hazelnuts. Other crops are tobacco, wheat, sunflower seeds, sesame and linseed oils, and cottonoil seeds. Opium was once a major crop, but its exportation was banned by the government in 1972. The ban was lifted two years later as poppy farmers were unable to adapt their land to other crops. The government now controls the production and sale of opium. some Israeli foodstuffs are also exported). And, while Egypt, Turkey, and Lebanon are just beginning to encourage more industrial development, Israel already possesses a strong industrial base that is fairly diverse, allowing it to generate the second highest GDP per capita in the region after the United Arab Emirates. Turkey also possesses a fairly diversified economy, with a strong agricultural sector and substantial mineral wealth. In contrast, national agriculture in Egypt is built on a fairly narrow base, largely because of the environmental constraints of the desert. But, like Turkey, Egypt has significant manufacturing capacity across a range of products from food processing to heavy machinery. Lebanon also possesses a strong agricultural base and, for many years, was a banking and financial center, connecting the region to the core of Europe and North America. However, civil war in 1975 1990 limited Lebanon s regional and global authority in the area of banking. A 2006 war with Israel further derailed Lebanon s political and economic stability. The conflict has since ended, and Israel has retreated from southern Lebanon, but tensions along the border remain and serve to destabilize Lebanon. As a result of these conflicts and the recent economic stressors associated with the global economy, Lebanon s economy is weak and the country is still deeply fragmented politically. Strong political and cultural differences in part driven by religious differences between the Jewish state of Israel and the predominantly Islamic states of Lebanon, Egypt, and Turkey have prevented these countries from acting in concert, even though there is much to suggest that cooperation would be mutually beneficial. That said, these four countries appear to possess the necessary ingredients to participate in the world economy thanks to their histories, their economies, and their roles in regional politics. The Maghreb The Maghreb is the region of northwest Africa that contains the coastlands and Atlas Mountains of Morocco, Algeria, and Tunisia and the mostly desert state of Libya (see Figure 15). The Maghreb region in general has a relatively strong economy based largely on oil and mineral exploitation, agriculture, and tourism. Algeria s oil industry provides nearly 90% of its export revenues. Libya, too, has substantial, high-quality petroleum reserves. Both Tunisia and Morocco are significant globally for their phosphate industries. All the Maghreb countries are also agricultural producers, though none is self-sufficient. The most important agricultural products of the region are wheat, barley, olives, dates, citrus fruits, almonds, peanuts, beef and poultry, and vegetables. Hugging the southern coastline of the Mediterranean, with rugged mountains rising up from the coastal plains and then trailing off to the desert, the Maghreb is a spectacularly beautiful setting. The region offers a range of tourist experiences, in both luxury and economy style, from beautiful beaches to trekking areas in the Atlas Mountains or the Sahara to ancient archaeological ruins (Figure 19). Europeans have been frequent visitors to the Maghreb; a short flight brings them to warm temperatures, exotic landscapes, and inexpensive and sumptuous food. Algeria and Morocco are two of the fastest-growing economies in North Africa because of tourism. And Libya and Tunisia were making substantial strides as well until recent political events curtailed economic development. If stability returns to these countries, links across the Mediterranean with the European Union through

APPLY YOUR KNOWLEDGE Compare and contrast the economies of the oil the states and the states that do not produce large quantities of oil in the Middle East and North Africa. In cases where oil is not available, what sorts of economies have developed over time? Which countries have been most successful at diversifying their economies? Territory and Politics The countries of the emerged from their colonial and mandate status burdened with a range of political challenges. Although the region has experienced wars and conflict TABLE 1 Gross National Income (GNI) and Human Development Index (2011) Country Gross national income (GNI) per capita (Constant 2005 PPP$) Human Development Index (HDI)* Algeria 7,658 L (96) Bahrain 28,169 VH (42) Egypt 5,269 M (113) Iran, Islamic Republic of 10,164 H (88) FIGURE 19 Tuaregs Crossing the Sahara A Tuareg man and his children, dressed in traditional blue robes, cross the Sahara area with camels. the Euro-Mediterranean Partnership, recently relaunched as the Union for the Mediterranean, may boost all sectors of the Maghreb, from resources to tourism. Social Inequalities across the Region The Middle East and North Africa is a region of extreme contrasts of wealth and poverty. Despite the phenomenal wealth generated from oil production for some parts of the region, most of the region remains poor and highly dependent on an increasingly marginalized agricultural sector. In 2011, the UN Human Development Report listed Qatar as having the highest GNI per capita PPP in the region (and the world) at U.S. $107,721 and Yemen with the lowest in the region at U.S. $2,231. Not surprisingly, national statistics like per capita income hide all sorts of variation. For instance, within the same area, dramatic variation can occur between one urban neighborhood and the next, and there are also understandable differences between urban and rural spaces. Most of the extreme wealth of the region comes from oil-based revenues in Saudi Arabia, Kuwait, Iran, Iraq, Oman, Qatar, Libya, and the United Arab Emirates (Table 1). States with the largest populations tend to have the lowest per capita wealth. As Table 1 shows, the variation in the overall Human Development Index (HDI), as measured by life expectancy, educational attainment, and income, also varies dramatically across the region. Moreover, even though Qatar has the highest GNI per capita PPP in the world, it is only ranked 30th overall on the global HDI. Iraq 3,177 M (132) Israel 25,849 VH (17) Jordan 5,300 M (95) Kuwait 47,926 H (63) Lebanon 13,076 H (71) Libya 12,637 H (64) Morocco 4,196 M (130) Oman 22,841 H (89) Qatar 107,721 VH (37) Saudi Arabia 23,274 H (56) Sudan 1,894 L (169) Syrian Arab Republic 4,243 M (119) Tunisia 7,281 H (94) Turkey 12,246 H (92) United Arab Emirates Yemen, Republic of 59,993 VH (3) 2,231 L (154) SOURCE: United Nations Human Development Reports 2011; accessed April 2012 from http://hdr. undp.org/en/statistics/data/. *Human Development Index is a combined measurement which includes life expectancy, educational attainment, and income. Each country is given a general rating as Very High (VH), High (H), Medium (M), or Low (L). In the bracket is the ranking of the country overall in global terms. In 2011, there were 187 countries reported.

VISUALIZING GEOGRAPHY Political Protest, Change, and Repression In 2009, protests erupted in Iran as charges of election fraud were made against the president, Mahmoud Ahmadinejad. Although this uprising, known as the Iranian Green Revolution, took place in a Persiandominated country, its occurrence was echoed in similar protests that began taking place two years later across the Arab-dominated parts of the region. These protests are led by a new generation of younger people who are calling for more open and transparent governments and political reform. The Arab Spring is a broad term used to refer to the numerous recent protests against dictatorships across the region, as people motivated by economic inequalities and lack of access to basic resources have taken to the streets to voice their concerns. The discontent that motivated Tunisia s Jasmine Revolution, for example, at the beginning of 2011, quickly found voice in many other countries in the region, including Algeria, Jordan, Saudi Arabia, Bahrain, Oman, Egypt, Libya, Yemen, Morocco, and Syria (Figure 2.1). The levels and success of the protests have varied: Egypt has undergone a regime change; there has been constitutional reform in Morocco; and Libya, Yemen, and Syria have experienced violent insurgency. Insurgencies led to the successful removal of the leaders in both Libya and Yemen, while in Syria violence continues as protesters and the government fight to control the future of the country s political process. The Syrian conflict is motivated in part by high rates of unemployment among younger Syrians and human rights abuses by the Syrian government. Protests in the region have been fueled by the global connectivity of people and through Internet sites. Viral videos often home-made videos seen by millions of viewers have been seen around the world on YouTube, and millions more people shared their experiences of the protests on Facebook. One of the most famous of these videos shows a woman being killed during the Green Revolution protests in Iran. Over 2 million people watched footage of the incident on YouTube. In response to these protests and the role that social media is playing, governments in the region, such as Iran, have blocked websites, cell phone calls, and text messages. They have also banned rallies throughout the region, and some gatherings have been met with violent reprisals by state-supported militaries, as was the case in Bahrain. Casualty numbers are difficult to measure, but some estimates have suggested that by 2012 thousands of people had lost their lives in these conflicts (see Figure 2.1). Governments that have tried to crack down on their citizens have come under international pressure. For example, NATO forces directly assaulted positions of the then Libyan president, Muammar Qaddafi, in an attempt to aid resistance fighters. And the U.N. and other international organizations have made efforts to pressure the Syrian government to limit its repression and open the country to democratic and economic reform. for hundreds, if not thousands, of years, and certainly well before the Europeans arrived, it is generally agreed that most of the present conflicts stem from the colonial period. The colonial imposition of borders united peoples within the region who were antagonistic to each other or divided peoples who were once united. The strategic importance of the to the political and economic interests of the world economy has also meant that the region has been subject to much contestation over its rich natural resources. At the same time that the region has been the site of bitter and, in some instances, seemingly irresolvable conflicts, it has also been the site of broad and sustained cooperation. The most significant unifying forces have been the religion of Islam and, for many of the countries, the Arabic language. These unifying forces of religion and language have helped many of the peoples of the region recognize that they have common political and economic goals. Recently, however, economic and class differences as well as a growing interest in democratic reform have shown that these unifying forces may not be enough to overcome some of the region s deep social divisions (see Visualizing Geography: Political Protest, Change, and Represssion ). Ethnic Conflict There are various ethnic conflicts in the region, each with a unique origin but often stemming from age-old conflicts and the legacies of colonialism. For example, the tensions that exist and the conflicts that have erupted between Iran and Iraq over the last 30-plus years are the result of several factors. One factor is the cultural differences between Persians (Iranians) and Arabs (Iraqis). Though the majority of both Persians and Arabs are Muslim, the ethnic origins, languages, geographies, and histories of the two groups are distinctly different. The differences and the conflicts between the two groups have very old beginnings. The Persians were conquered by the Arabs in the 7th century and converted to Islam beginning in the 9th century. Since then, there has been animosity between the peoples of these two countries; their relationship has more recently been complicated by their respective dealings with Britain and the United States. Iran s relationship with Arabs in the region has been tested in the last few years, as Iran has been seen to be supporting conflict in its neighbor Iraq and also in Syria. Some studies show that Iran s favorability among Arabs in the region has been declining for the last six years. Other points of tension have occurred because of ethnic Kurdish groups who have been fighting the Turkish government for autonomous control over their shared Kurdish mountain region. Kurds have also been struggling against the Iranian and Iraqi governments for greater regional autonomy. About 20 million Kurds, a non-arabic people who are mostly Sunni Muslims, live

Political protest, change, and repression 2010-2012 (Data as of October 2012) Successful Arab Spring protests Unsuccessful or ongoing Arab Spring protests Green Revolution protests Not involved in Arab Spring, but with long-term internal conflicts Estimated deaths 2,500 WESTERN SAHARA Rabat Casablanca MOROCCO Rabat - Protesters rally for political reform in February 2011. Casablanca - A trade-union rally brings tens of thousands of people to the streets protesting the lack of reform in May 2012. MAURITANIA ALGERIA TUNISIA Sidi Bouzid - Mohammed Bouazizi sets himself ablaze on December 17, 2010, igniting the Arab Spring. Tunis - President Ben Ali imposes state of emergency and fires government in January 2011; he is arrested and jailed in February 2011. Tunis - Returned exiled activist, Moncef Marzouk, is elected president in December 2011. N Sidi Bouzid Tunis Tripoli Sirte LIBYA LIBYA Banghazi Benghazi - Qaddafi s troops crack down violently on protests beginning in February 2011. Tripoli - The rebels take the capital after heavy summer fighting. Sirte - Qaddafi is killed in his hometown on October 20, 2011. Benghazi - U.S. ambassador to Libya is killed on September 11, 2012. JORDAN, LEBANON, TURKEY Housing over 250,000 refugees from Syria, as of August 2012 TURKEY LEBANON ISRAEL EGYPT JORDAN SUDAN Idlib - Syrian army captures this rebel controlled city on March 13, 2012. Latakia Baniyas ISRAEL SYRIA IRAQ LEBANON Damascus Quneitra JORDAN SAUDI ARABIA Hama Homs Aleppo - Syrian troops fire on protesters, while a car bomb kills at least five on May 5, 2012. Aleppo Jisr al-shughur Tehran San a Hama - The military besieges and captures Hama on July 31, 2011. SYRIA Damascus - Authorities crack down on the first protests on March 16, 2010. - Syrian troops shell suburbs of the city, killing at least 43 on June 29, 2012 - Syria s Prime Minister defects on August 6-7, 2012 Daraa - Violent government suppression begins in March 2011. IRAN* Hama Homs Damascus KUWAIT Kuwait Beirut Daraa Manama BAHRAIN QATAR UNITED Cairo ARAB EMIRATES EGYPT Cairo - Protests begin in January and culminate with Hosni Mubarak s 2011 resignation. YEMEN TURKEY Al-Raqqah Al Hasakah Deir al-zor Homs - Bloody government response to demonstrations escalates when tanks enter Homs in May 2011. OMAN YEMEN IRAQ Sanaa - In January 2011 protesters call for Ali Abdullah Saleh s resignation. 0 50 100 Miles 0 50 100 Kilometers IRAN Tehran - In advance of the Arab Spring protesters take to the street to demonstrate against President Mahmoud Ahmadi.nejad in June 2009. BAHRAIN Manama - Protests begin at Pearl Square in February 2011. OMAN Muscat - Protests lead to economic concessions and changes to government in February 2011. FIGURE 2.1 Map of Protest, Change, and Repression in the This map shows the varying levels of success related to protests in the region between January 2010 and October 2012.