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Southwest Asia Government & Economics of Southwest Asia

Southwest Asia Government & Economics of Southwest Asia

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Page 1: Southwest Asia Government & Economics of Southwest Asia

Southwest Asia

Government & Economics of Southwest Asia

Page 2: 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

Page 3: Southwest Asia Government & Economics of Southwest Asia

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

Page 4: Southwest Asia Government & Economics of Southwest Asia

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

Page 5: Southwest Asia Government & Economics of Southwest Asia

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

Page 6: Southwest Asia Government & Economics of Southwest Asia

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

Page 7: Southwest Asia Government & Economics of Southwest Asia

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”

Page 8: Southwest Asia Government & Economics of Southwest Asia

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

Page 9: Southwest Asia Government & Economics of Southwest Asia

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

Page 10: Southwest Asia Government & Economics of Southwest Asia

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

Page 11: Southwest Asia Government & Economics of Southwest Asia

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

Page 12: Southwest Asia Government & Economics of Southwest Asia

Economics

• Turkey:– Diversified economy; service, manufacturing,

and agriculture– Moving from government controlled economy

to more private enterprise– One-fifth of their production is exported

Page 13: Southwest Asia Government & Economics of Southwest Asia

Economics• OPEC:

– Organization of the Petroleum Exporting Countries

– Created in 1960 – Consists of 12 oil-producing

countriesAlgeriaAngolaEcuadorIran IraqKuwaitLibyaNigeriaQatarSaudi ArabiaUnited Arab EmiratesVenezuela

Page 14: Southwest Asia Government & Economics of Southwest Asia

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.

Page 15: Southwest Asia Government & Economics of Southwest Asia

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

Page 16: Southwest Asia Government & Economics of Southwest Asia

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