Historical developments often have an effect on the current economy of a state. The Middle East economic state has been stagnant. The reason for underdevelopment concerns is linked to the events that occurred in 1800.
According to Owen Roger, the integration of the Middle East with the entire world was sluggish. He based his arguments on the financial, commercial, and political integration of the region. The principle processes Owen displayed substantiates the historical background of Middle East’s efforts to develop its economy. There was an erosion of the handicrafts, agricultural production, the ineffectiveness of the industrial enterprises and structural changes among other issues. The central government faced fiscal difficulties. This was based on the lack of proper political atmosphere that would have helped in regulating various stakeholders in both commerce and legislative branch. There was the need to increase the domestic production due to the growing population (Owen 9). The creation of a fixed agricultural pattern, financial and industrial activity resulted into underdevelopment of the core industries. The struggle to detach the patterns formed led to struggles that were not successful after the collapse of Ottoman Empire. The challenge is still witnessed in the today's the Middle East economic development. The essence of altering the approaches affected the central zone in the Middle East. The Middle East had a firm structural framework that was significant in the development of its economy. The influence of the European finance, trade, and Internal restructuring of Egypt in an attempt to achieve free economy failed (Owen 14). Additionally, Security concerns due to the fight for control of oil have led to the underdevelopment of the Middle East to date. Heavy borrowing has also caused the slow development of Middle East.
Key policies should be put in place to salvage the economy of Middle East. There is the need to create a mutual relationship with other countries. This will help in enhancing import and exports. The integrative restructuring that involves all stakeholders when executing change (Esfahani, Hadi, and Gulcay 12). Regional integration policy will ensure that the Middle East make economic gain through the welfares created. Essentially, various reforms should be done, for example, education reforms, good governance, development of market economy and social investing. The Middle East should minimize external borrowing.
Works Cited
Esfahani, Hadi S, and Gulcay Tuna. Economic Development in the Middle East and North African Countries: Contemporary Issues. N.p., 2012. Print.
Owen, Roger. The Middle East in the World Economy, 1800-1914. London: I.B. Tauris, 1993. Print.
