Doing Business In The Middle East & Africa
Middle East Economy
The rapid spread of political democracy and the development of market economies in Eastern Europe, Latin America, East Asia and parts of Africa passed the Middle East by. In the whole region, only Israel, Turkey and to some extent Lebanon were democracies. Other countries had legislative bodies, but these had little power, and in the Gulf states the majority of the population could not vote anyway, as they were guest workers and not citizens.
In most Middle Eastern countries, the growth of market economies was inhibited by political restrictions, corruption and cronyism, overspending on arms and prestige projects, and overdependence on oil revenues. The successful economies in the region were those which combined oil wealth with low populations, such as Qatar, Bahrain and the United Arab Emirates. In these states, the ruling emirs allowed a certain degree of political and social liberalization, yet without giving up any of their own power. Lebanon, after a prolonged civil war in the 1980s, also rebuilt a fairly successful economy.
African Economy
The economy of Africa consists of the trade, industry, and resources of the peoples of Africa. As of July 2005, approximately 887 million people were living in 54 different states. Africa is by far the world's poorest inhabited continent, and it is, on average, poorer than it was 25 years ago. Of the 175 countries reviewed in the United Nations' Human Development Report 2003, 25 African nations ranked lowest.
Africa's current poverty is rooted, in part, in its history. The transition from colonialism has been shaky and uncertain. Since mid-20th century the Cold War and increased corruption and despotism have contributed to Africa's poor economy. While China and India have grown rapidly and Latin America has experienced moderate growth, lifting millions above subsistence living, Africa has stagnated and even regressed in terms of foreign trade, investment, and per capita income. This poverty has widespread effects, including low life expectancy, violence, and instability, which in turn perpetuate the continent's poverty. Over the decades, attempts to improve the economy of Africa have met with little success.
