Southwest Asia Government & Economics of Southwest Asia
Apr 01, 2015
Southwest Asia
Government & Economics of Southwest Asia
Distribution of Power
• Unitary: power held by one central authority (not necessarily one person)
• Confederation: state governments hold more power than the central government
• Federation: powers divided and shared between central and state governments
Civic Participation
• Autocracy: citizens have little or no role in government (one person in complete control of the government)
• Oligarchy: citizens have little or no role in government (small group in control of the government)
• Democracy: citizens hold supreme power and exercise it either directly or indirectly through the voting process
New types:
– Parliamentary democracy: real executive power lies in a cabinet composed of members of the legislature
• Presidential ;Two ruling bodies that have separate jobs and duties (writing laws and enforcing them
Governments
• State of Israel:– Parliamentary democracy– Knesset: 120 member
Parliament– Prime minister is the head
of government • Current Prime Minister is
Benjamin Netanyahu
• Citizens over the age of 18 can vote for members of the parliament (Knesset) who in turn elect the prime minister
Governments
• Saudi Arabia:– Monarchy; right of
succession is hereditary but successor is chosen from the crown princes of the royal family
– King’s power is limited by Islamic law and he must build consensus among religious leaders before making decisions
– Citizens have no voting rights and there are no political parties
King Abdullah Al Saud
Governments
• Islamic Republic of Iran:– Theocratic republic with a presidential system– Very complex and interconnected government
system– According to the Iranian Constitution, it is “the
duty of the Islamic government to furnish all citizens with equal and appropriate opportunities, to provide them with work, and to satisfy their essential needs so that the course of their progress may be assured”
Governments
– The Supreme Leader of Iran is the highest ranking political and religious leader in Iran
• Supreme Leader is appointed by the Assembly of Experts
• Appoints the commander of the armed forces, director of the radio and TV network, prayer leaders in city mosques, and members of the national security councils
• Has sole power to declare war or peace
Ayatollah Khamenei
Governments
• Iran:– All citizens can vote over
the age of 18 for president, legislature, and Assembly of Experts
– President is the highest political authority after the Supreme Leader
– President is elected by the people, serves a 4-year term and can be re-elected once
– President is the head of government but can be removed by the Supreme Leader at any time
President Mahmoud Ahmadinejad
Economics
• Saudi Arabia:– World’s leading producer of
oil– Over 95% of oil industry is
operated by the government
– Government has been trying to increase private ownership of business and more foreign investment
– One-third of Saudi Arabia’s GDP is based on exports to other countries
– A huge increase in literacy rate in the last 30 years has also increased GDP
Economics
• Israel:– Much of Israel’s GDP
comes from high tech manufacturing, financial services, and agriculture
– Have developed a strong technology industry to make up for the lack of natural resources
• Israel spends a lot of money to be sure their workers are trained
– Government owns many businesses, but is gradually privatizing businesses
Economics
• Turkey:– Diversified economy; service, manufacturing,
and agriculture– Moving from government controlled economy
to more private enterprise– One-fifth of their production is exported
Economics• OPEC:
– Organization of the Petroleum Exporting Countries
– Created in 1960 – Consists of 12 oil-producing
countriesAlgeriaAngolaEcuadorIran IraqKuwaitLibyaNigeriaQatarSaudi ArabiaUnited Arab EmiratesVenezuela
OPEC
• Purpose of OPEC was to work together to regulate the supply and price of oil they exported to other countries
• Most of the member countries are located in SW Asia
• These countries decide how much oil they will produce which determines the price of oil– When they produce less oil,
prices go up. When they produce more, prices go down.
Trade Barriers
• Tariff– A tax on imports
• Quota– A limit on the amount of goods imported into a
country during a certain period of time
• Purpose of both is to encourage consumers to purchase domestic goods
• Embargo– Cuts off trade; usually used to put political pressure
on a nation to force them to do something
• Quota
Trade Barriers
• Following the Persian Gulf War, the United Nations imposed an embargo against Iraq.
• The purpose was to restrict Iraq’s trade until it met UN requirements.– Banned all trade and financial imports except
for medicine and some food– Led to food rationing and the alleged deaths
of many Iraqi people, especially children, due to malnourishment and sickness