The Middle East is a vast region with many countries which are differently endowed with both natural and human capita l resources. The state institution and development of societal status have also evolved differently based on the past experiences of colonial and pre-colonial eras. The Middle East region is known to have suffered economic backwardness dating back to the seventeenth century. The state of economic conditions and social developments of the Middle East countries is quite similar to those of North Africa region countries particularly Egypt. The two regions were highly affected by the ruling of the Ottoman Empire and the European intervention in the regions. Economic policies and social structures laid down by the Ottoman Empire are still being felt today in the current Middle East. The results of the policies have impacted largely on the regions development and helped lay down the current state development structures like improving the education system to provide quality access to education services by citizens.
Economists explain institutions as the main factors for the current state of economic disparities in different countries. They argue that institutional structures are the key elements which affect the economic performance of various societies. Formation of economic institution with the capacity to generate long-term economic changes is the primary step for the success of every nation. The success of nations due to presence of stable and favorable institutions has reliable evidence which dates back to early 1890s specifically in Western Europe. The state is the major player in setting of favorable institutions which help create incentives for businesses people to engage in highly productive ventures. The Ottoman Empirebrought several institutional changes in the Middle East though in certain few selected areas. The policies laid down by the Ottoman Empire were mainly geared towards developing areas of technology, finance (both private and public) and organization.
The strategic location of the Ottoman Empire made it a key player in the Middle East economy. The empire was located at the center of intercontinental trade which covered a vast land of Middle East including countries like Anatolia and the gulf of Egypt. The ottoman government operated on interventionist systems and was always keen to ensure that there are no shortages of goods in the market. One notable impact of European intervention was the financial control which resulted in a reversal of the flow of funds. The move increased the rate of debt payments from external borrowing. The strategy of close financial control reduced the risk associated with bond issuing hence decreasing the borrowing rates. Decrease in the borrowing rates meant that access to capital was now easier for both the government and its people. In the current state, financial institutions always seek to decrease their lending rates so as to encourage borrowing by both private and public investors. This old policy borrowed from the ottoman economic policies help boost economic development due to increased investment. Population growth is also positively affected by the policy as access to quality and adequate food resources as economy grows lead to increase in the rate of reproduction. Strong and powerful financial systems with close regulation by the state and the responsible authorities help foster peace and posterity of the people. Minimal financial wrangles as a result of better policies enhance peaceful coexistence of both individuals and institutions.
The discipline instilled on the region's finance systems by the European government served as a model for establishing effective and efficient finance management systems. The effective management of finance due to the European interventionist policies modernized entrepreneurship and acted as backbone for today's strong economy. The urge to promote the existing trade between Europeans and the Ottoman empire created a sequence of development of several public facilities which served to improve the lives of the people leading to their development. The creation of a favorable environment for trade was made effective by construction of facilities such as roads and ports. Improvement of infrastructural facilities eased peoples' movements as well as the transportation of goods to their respective markets. The development led to opening up of uncultivated areas for agriculture resulting to an increase in the total revenues. As a result, the price of their goods became more competitive in the market. These developments fostered stability of the nation and as a result movement of people to other regions (emigration) reduced since the emergence of a favorable environment for trade and agriculture provided people with many opportunities for engaging in productive activities. Presence of enough food and improvement of several facilities including health facilities led to a decline in the mortality rates. Accessibility of health facilities and health services helped reduce the number of deaths and this laid a foundation for the current worldwide advocacy for improved health facilities to help reduce the number of deaths. Reduction in the number of deaths accompanied by increase in births of new children increase a country's population. Movement of people in the region without much movement of people to outside areas leads to population growth. People migrating to a country either for permanent settlement, business activities, employment or for education purposes increase the region's population.
Emergence of new employment and business opportunities made the realization of responsibilities for both women and minors possible. Women were now actively involved in productive activities with the youths also playing a greater role in economic activities such as farming. Today's government still advocate for development of the minority groups, women and the youth. The Ottoman Empire for example introduced a European system of education in Egypt. The Ottoman Empire rulers did this with the aim of growing and developing a class of well-educated administrators and army officers. The class would later become the national which helped and even today works in the government to protect and secure her social and economic territories. The role of state in education is to provide educational facilities such building schools and colleges, employing teachers and providing books for the students. It is also the work of the state to ensure high standards of education to its people and provide the best education curriculum. More educated people are very much productive and take large parts in productive activities. Educated people are more innovative and it's through their new innovation that new and more effective ways for doing business are discovered and totally new investment opportunities are brought to light. Despite its advantages in developing people, the new education systems is possibly the primary cause of labor markets and segregation of the youth in sharing of national resources and fruits of development.
The demand for access to education highly increased surpassing the available educational resources provided by the government. Employers now started looking for only the top qualified personnel leaving out those with low level of education and those without any education level. Since the youth were the most affected by the education system and having a greater role in economic development, the highest part of people being excluded from the markets included the youth, a problem which affects the country even today. For the government to effectively tackle this problem, it should put more emphasis on developing an all-round economy with sectors which can accommodate all categories of people in addition to increasing and improving education facilities (Cochran, 73).
Works Cited
Quataert, D. The Ottoman Empire 1700-1922. Cambridge: Cambridge University Press, 2000.
Cochran, J. Education in Egypt. New York: Routledge, 2012.
