Middle East and Oil

Middle East and Oil

  • Submitted By: njoyp
  • Date Submitted: 10/13/2013 2:35 PM
  • Category: Business
  • Words: 300
  • Page: 2
  • Views: 98

Even though the Middle East is a major supplier of oil it is still considered an LDC by the World Bank. If oil were no longer a major and primary source of energy I believe there would be an economic collapse to the Middle East. Relying solely on any product would cause an economy to suffer severely, leading to greater poverty and widespread economic suffering. The obsolete supply of the region’s only product over consumer demand would result in a price decrease. The economy’s only real source of income would be almost completely depleted. This would make the Middle East very undesirable to any new or old investments by other countries. In addition, help from other countries would diminish, especially the USA who protects the region regardless of their policies and internal turmoil. This would result in severe economic hardships throughout the region.
If the Middle East engaged in advanced planning and realized oil would eventually be an obsolete source of energy they could make investments in research/innovations for alternative energy sources. If planned properly, the region could invest current profits in sustainable energy sources, such as solar and wind power. The Middle East could also invest in education, which could in turn help the region by providing creativity, innovation and technology to achieve sustainable growth.
Most economies achieve sustainable growth through innovation and creativity. Economies that rely heavily on a natural resource should take proactive steps to develop and implement alternative sources to their product. Research investment in hydroelectric, tidal and biomass energy should be one of the main priorities to an economy that relies heavily on oil to produce energy. In addition to alternative resources, the region should invest in modern infrastructure to help attract foreign investment, which could in turn help to stabilize the economy.

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