Assess the view that despite the vast revenues from oil, the Middle East countries are

still under developed?

The Middle East is associated with huge wealth concentrations due to the advantages of
the availability of soft power one of them oil resources. It is that oil; the much needed
energy resource in this globalisation era that the Middle East has the advantage of owning.
Oil is the leading source of commercial energy in the modern world. Since the end of World
war two, the world became increasingly dependent on Arab oil. One would expect that the
availability of oil in the Middle East will result in the highest levels of per capita GDP and a
considerable development but the Middle East countries are still under developed. This
discussion will therefore highlight that revenues from oil in the Middle East can be
considered as a curse in disguise. Middle East countries are still seen as economic laggards
and still lag behind in the process of development due various reasons such as Arab risings,
sanctions, lack of education, corruption, colonialism or neo colonialism, terrorism and
seclusion of women in the development system. The discussion will also highlight that the
Middle East countries are affected by both internal and external forces which hinder
development of the region.

When laymen speak of the Middle East today they are often really thinking of the Arab world
yet according to Keddie (1993) the Middle East, as a geographical term, is generally used
today to cover the area stretching from Morocco through Afghanistan, and is roughly
equivalent to the area of the first wave of Muslim conquest. Some other scholars such as
Culcasi (2007) allude that the Middle East is the geographic and cultural region located in
south western Asia and north-eastern Africa. Mallat (2007) on the other hand refers the
Middle East as the area extending from Libya or Egypt in the West to Iran or Afghanistan
and Pakistanin the East. This discussion will therefore consider Hourani (1991)’s collectively
term which includes the Asian countries of Bahrain, Cyprus, Iran, Iraq, Israel (and the Israeli
occupied Gaza Strip and West Bank), Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia,
Syria, Turkey, the United Arab Emirates, and Yemen, and the African countries of Egypt and
Libya.

Underdevelopment is also a term necessary to define for the flow of this discussion.
According to Willis (2011)underdevelopment outline a relative condition in which a society
lacks self-governing capacity to control and mobilize socio-economic formation for a
sustainable economic growth and development necessary to effect physical, mental material

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and technological fulfilment without dependence on external stimuli. Whereas to Offiong
(1980) Underdevelopment means a condition of economic and technological backwardness
which together ,constrains the evolution of stable and enduring political system and
dynamic external relation. It is important to note that underdevelopment is not a natural
phenomenon, it is a human factor in fact a man-made condition. It is also a product of
history, it defines relatively not the total absence of development features but the gap
between one state of development features and the other. Given this scenario of under
development of a state one can argue that there is no option but to make an assessment since
there is the underdeveloped countries because there are developed countries for comparison.
To Kingsbury (2004), underdevelopment therefore refers to a socio-economic structure which
is subjugated and dominated by a disarticulation of the peasantry, low level of productivity,
high rates of un-employment and under employment, chronic foreign debt and balance of
trade problems, and dependence on raw materials, absolute poverty, dictatorial and corrupt
leaders among others.

World system, a theory propounded by Immanuel Wallestein is appropriate to guide this

discussion. Through the use of the theory, one will be able to identify that the issue of
underdevelopment which the Middle Eastern countries are experiencing has a hand of some
external factors. In this theory Wallestein (2000) talk of core, periphery and semi periphery.
This therefore reflects that there is a division of state and it is the stage of development
that define which class a state can fit.Chirot and Hall (1982) postulate that the world-system
theory in many ways reflects an adaptation of dependency theory. Dependency in that states
regardless of class or stage of development rely on each other. For Wallestein, a world-
system is a social system, one that has boundaries, structures, member groups, rules of
legitimating, and consistency.In other words one can say it has the characteristics of an
organism, in that is has a lifespan over which its characteristics change in some respects and
remain stable in others, Wallestein (2000).Goldfrank, (2000) concurs that a world-system is
what Wallestein terms a world economy integrated through the market rather than a political
centre, in which two or more regions (core and periphery) are interdependent with respect to
necessities like food, fuel, and protection, and two or more polities compete for domination
without the emergence of one single centre forever.

The core-periphery relationship is structural. Semi-peripheral states acts as a wall between

core and periphery, and has a mix of the kinds of activities and institutions that exist on them

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Skocpol (1977).)Among the most important structures of the current world-system is a power
hierarchy between core and periphery, in which powerful and wealthy "core" societies
dominate and exploit weak and poor peripheral societies. Technology is a central factor in the
positioning of a region in the core or the periphery. Advanced or developed countries are the
core, and the less developed are in the periphery. Peripheral countries are structurally
constrained to experience a kind of development that reproduces their subordinate status,
Chase-Dunn and Grimes, (1995). For Wallerstein, nation-states are variables, elements within
the system. States are used by class forces to pursue their interest, in the case of core
countries. Imperialism refers to the domination of weak peripheral regions by strong core
states. Through the use of world system, the discussion will highlight the existence of a
hegemony which refers to the existence of one core state temporarily outstripping the rest.
Hegemonic powers maintain a stable balance of power and enforce free trade as long as it is
to their advantage.

Middle East countries remain under developed in spite of huge amounts of money from oil
due to the repercussion of colonialism. Memmi (2013) notes that effects of colonisation will
continue to affect the colonised even after its end. Memmi’s argument therefore highlights
that most of the problems that the Middle Eastern states face today were created by their
colonisers. One can therefore also argue that the colonisers still hold the leash to control their
former colonies. This discussion will highlight that from a world system perspective,
colonisation is also a process that created state divisions or classes. It is usually the colonisers
that are at the core while the colonised remain in the periphery. Countries in the periphery
remain underdeveloped as a result of exploitation of their resources by countries from the
core.The process of colonialism reflects a super power obtaining the power to dominate a
weaker power while it controls and exploit its resources. History has shown that effects of
colonialism still dominate in the colonised states. Although for most Middle Eastern states
colonial rule ended some sixty years ago, its legacy continues in contemporary Middle
Eastern politics. It is due to many problems that created by colonialists in Middle East that
give rise to problems that hinder development in the Middle East.

The former colonisers of some Middle Eastern countries created and left problems that still
affecting the region. A most strikingly example is the case of Lebanon’s territorial borders.  
Rather than being based on any specific geographic or historical division, the borders of
Lebanon were almost entirely a creation of the French. In September 1920 the French created

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the ‘State of Greater Lebanon’. The French drew on this precedent and divided Lebanon from
Syria. This division gave the Maronite population, long allies of the French, a state in which
they were the majority Baxter and Akbarzadeh (2008). Salem (1993) on the other hand
postulates that this not only allowed the French to fulfil the wishes of their Maronite
Christian allies, but was also a convenient way of reducing the support base of the rival Pan-
Arab nationalist movement that was growing out of Damascus .It was in this way that the
modern borders of Lebanon were delineated and demarcated and the foundations of a
Lebanese nationalism were laid. In contemporary Middle Eastern politics these borders
therefore have been the cause of much conflict and turmoil. One therefore might ask is
development possible where there is conflict. The answer is definitely a no. The border
disputes have only included domestic conflict within Lebanon, but also regional conflict
involving Lebanon, Syria and Israel.

When the French withdrew from the Mandate in the mid-1940s, the newly independent states
of Syria and Lebanon failed to conclusively establish a formal border. In recent years the
border’s porous and undefined nature has been linked to issues including weapons
smuggling, terrorism, and the deaths of farmers caught in disputed territory, Dhaher (2009).
The potential consequences of these issues for both regional and international security have
resulted in calls for actions from states such as the United States and France, as well as the
United Nations. As the countries from the core, the involvement of the France and US in
solving the problems they created is clear reflection of how the former colonisers are
always involved in the affairs of the periphery. It can be argued that the involvement of
America in the guise of fight against global terrorism is a way of getting hold of oil. It is
difficult for Middle Eastern states to develop as they are always confronting each other on
problems left for them by their former colonisers who are the super powers in the core. One
can also argue that the super powers colonised and left problems for their former colonisers
as a way of remaining relevant in the Middle East.Just like how France’s influence in its
former colonisers in Africa, the presence of super powers in the Middle East is to create
chaos so that within the situation they find ways to exploit oil. There is no doubt that
development is hindered when there is an issue of smuggling, terrorism and infighting of
farmers who are also considered as the important in the production and development process.
Despite gaining much revenues from oil the Middle Eastern countries cannot focus on

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development as their concentration is shifted to focus on problems that were created by
their former colonisers.

Arab uprisings have exposed that it is difficult for Middle Eastern states to focus on
development while there are national security issues to deal with. From a world system point
of view, countries in the core enjoy the advantages of a stable economy which is highly
sustained by those in the periphery. In this case states from the core which were referred by
the United Nations as first world or developed are more advanced in development than the
third world countries, Middle Eastern states. Despite having natural resources (oil) which
developed countries do not have, Middle Eastern states remain underdeveloped due to
domestic affairs that caused the Arab Springs or uprising. According to Gevin(2012) an
abundance of young people couple with widespread discontent over unemployment, low
living standards ,uprisings and armed rebellions spread across Middle East and it became a
phenomenon known as the Arab Spring which were dominant in 2011. One therefore can see
that development of the Middle East becomes futile in that due to such revolts, populations in
Middle Eastern states are facing a great insecurity in meeting their daily needs. Instead of
focusing on development the people in Middle East shifted their bread and butter issues. This
clearly highlight that governments in the Middle East are corrupt and incompetent to the
extent of not being able to use the money obtained from oil to create employment.
According to Schwarz (2008), upon discovery of oil, Middle Eastern rulers opted to become
rentier states those that rely on getting revenues from the outside world in this case from the
Western countries in the core. Schwarz also defined rents as ‘the income derived from the gift
of nature’ and from the export of natural resources, especially oil and gas.This reflects that
countries in the periphery are not on par with those from the centre or core due to the stable
economy that provide for their populations. High unemployment, particularly among
educated youth in Middle East, is an enormous challenge to development and well-being.

The Arab Springs or uprisings present a situation in which economic and political problems
which the Middle East countries were facing come into open. Though the Arab Springs’s
biggest achievement was to demonstrate that dictators can be removed through a revolt
without foreign intervention, many problems that disturbed development in the region
emerged .In some countries, the breakdown of the old order led to armed conflict. The
uprising in Syria, a multi religious society ruled by one of the most repressive Arab regimes,

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descended into a brutal civil war prolonged by outside interference.Mchugo (2015) postulates
that one cannot overlook the actions of outside powers, in this case those from the core.
Going back to colonialism one must note that it is Britain and France who took the
responsibility of deciding who was not Syrian today.Mchugo (2015) went on to say that the
civil war could be said to be the last proxy conflict of cold war. This must also be due to the
involvement of Russia’s involvement in Syrian war launching air strikes where America has
been operating. The Syrian war has displayed that development has been put on hold while
Russia flaunts about regaining its position in the Middle East at the same time reflecting a
move to shift a balance of power. It is a pity to note that the availability of oil in Middle East
is a curse in disguise if one may rudely puts it. All the money gained from exporting vast oil
as a resource is not directed to the benefits of the Middle East states but to a war that is
resulting not only to death of innocent people but also to destruction of infrastructure. This
therefore means that if the Syrian war is to end today, it is a back to zero situation as
rebuilding of the state is needed despite having spending more money in the war,besides
who in his common sense would want to invest in a war torn state.

The Arab Spring also reinforced the Sunni Shiite tension. The tension between the Sunni and
Shiite branches of Islam in the Middle East had been on the rise around 2005.This tension
reflects a clash of civilizations .Faced with uncertainty of political change during the Arab
Springs, many people sought refuge in their religious community, Lamont et al (2015).The
protests in the Sunni-ruled Bahrain were largely the work of the Shiite majority which
demanded greater political and social justice. Most Sunnis, even those critical of the regime,
were scared into siding with the government. In Syria, most members of the Alawite religious
minority sided with the regime (President Bashar al Assad is Alawite), drawing deep
resentment from the majority Sunnis. Meanwhile, Middle East religious fundamentalism
continues to grow alongside increasing animosity towards the West, therefore one can sense a
clash of civilizations. Muslims are split into two main branches, the Sunnis and Shia.
According to BBC (2014) the split originates in a dispute soon after the death of the Prophet
Muhammad over who should lead the Muslim community. Members of the two sects have
co-existed for centuries and share many fundamental beliefs and practices. Lamont et al
(2015) also note that Sunni Muslims regard themselves as the orthodox and traditionalist
branch of Islam. In early Islamic history the Shia were political factions - literally "Shiat Ali"
or the party of Ali. The Shia claimed the right of Ali, the son-in-law of the Prophet
Muhammad, and his descendants to lead the Islamic community. Shia Muslims are in the

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majority in Iran, Iraq, Bahrain, and Azerbaijan and, according to some estimates, Yemen.
There are large Shia communities in Afghanistan, Lebanon, Qatar, Syria, Saudi Arabia and
the United Arab Emirates. In countries that have been governed by Sunnis, Shia tends to
make up the poorest sections of society. They often see themselves as victims of
discrimination and oppression. Some extremist Sunni doctrines have preached hatred of Shia.
During the civil war in Lebanon, Shia gained a strong political voice because of the military
activities of Hezbollah. In Pakistan and Afghanistan, hard line Sunni militant groups - such as
the Taliban - have often attacked Shia places of worship. Already one can see the traits of
terrorism. The current conflicts in Iraq and Syria have also acquired strong sectarian
overtones. Young Sunni men in both countries have joined rebel groups, many of which echo
the hard line ideology of Al-Qaeda. According to the Guardian (2015) across the Middle
East, sectarianism has always been linked to the battle for power, resources and territory.

In most Middle Eastern states, national issues concerning development have taken the back
seat due the rise of terrorism in the region. Walvoord and Hitchcock (2007) highlight in their
message of doom that terrorism ,instability and the threat of a destruction of oil have created
a greater need for peace but the Middle is about to explode and drag the world into one of
the most difficult conflicts in the world history.Huge influx of oil to the Middle East is the
potential for such money to be used to strengthen already well established extremist terror
groups in the region. Islamic State of Iraq and The Levant (ISIL) has emerged as the largest
Sunni terrorist organisation that is dominating the Middle East. Its formation would have
been difficult without years of instability and chaos within the states of Iraq and Syria. It is
the instability and chaos in Iraq and Syria that can be argued to have provided a ground for
terrorism breeding. On the case of Iraq becoming a haven for terrorists booming, one can
say that America has a hand to play.Al-Azm (2014) postulate that the 2003 Iraq invasion
by America contributed to the problems Iraq is facing. In this regard, one can say that from
a world systems point of view, America as the hegemonic state is fighting a problem which it
created. It is the countries in the core that create a gap or difference between states thus the
core and periphery. One of the major reasons for the emergence of terrorism is the fight
against western domination which is created by world system. Events that occurred on
September 11, 2001, marked a new dimension of America as a hegemonic state on its foreign
policy. The Twin Towers at the Pentagon in NewYork terrorist attack initiated America‘s
global war on terror and it highlights that America is faced by threats also emanating from

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failed states. In addition, inability and or interest on the part of most Arab regimes to curb the
activities of Islamist terror groups will likely spell their empowerment, hence they remain
underdeveloped.

Though the Middle East finds itself increasingly soaked oil revenues, the region continues to
lag behind in terms of its economic strength and stability compared to other parts of the
world. Soaring unemployment rates and underdevelopment are further exacerbated by the
fact that women remain largely excluded from regional workforces. In fact, Chamlou et al
(2008) postulates that participation of Arab women in the regional labour force is lower than
anywhere else in the world, a factor that impedes modernization by limiting the exploitation
of nearly half of the region’s potential labour force. Though some progress has been made in
terms of increasing the empowerment of women in certain parts of the region, especially in
terms of education, severe deficiencies still exist. Chamlou et al (2008) also notes that
women have to obtain the permission of their husbands to work in most Middle Eastern
countries. Chamlou et al gives Saudi Arabia as an example of a country that has the lowest
female labour force participation. Furthermore, unemployment rates for females in many
Arab countries were almost doubles that of males. The effects of raising the participation
level of women would have obvious benefits for the region’s economy. Moreover, inclusion
of women in the local workforce would be one way of tackling another serious problem
which distresses the region that is rampant national unemployment amidst a growing
population of foreign workers.

However it can be unfair to end this discussion with idea that the Middle East is
underdeveloped. One must note that though some counties in the Middle East are faced with
problems that hinder development some are not affected. It could be said, that the discovery
of oil and its further export and utilization has promoted the economic modernization in the
Middle East and, of course, in the oil possessing countries; the infrastructure, social and
living conditions as well as health care have improved. Moreover, some Middle East
countries have become more attractive for business and for tourism; more and more
companies enter the Middle East markets and develop their business in the region. Spraggon
and Bodolica (2014) allude that all the Emirates constituting the UAE federation and
particularly Dubai and Abu Dhabi have made significant financial investment in developing
their infrastructure and providing their citizens and foreign residents with high standard of
living. These efforts have led to the emergence of Internationally recognised brand in the
airline(Emirates),real estate (Emaar),hospitality (Jumeirah)and marine terminal operators (DP

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World) industries,Spraggon and Bodolica (2014).One therefore can say that it is not all
countries in the periphery that can lag in development. Some are making use of the revenues
from oil.

In conclusion, managing of oil revenues have proved to be a difficult task in the Middle East
considering the dangers of becoming a breeding ground for of terrorists. It is impossible to
concentrate on development where there is war or conflicts arising from the Arab Springs.
Most of the money gained is lost in a bid to fight rebels in the Syrian war. The involvement
of developed nations in the Middle East highlights their hypocrisy of offering assistance
while in reality it is the oil they want. Middle Eastern states must not only focus on
revenues from oil to help in their development.It seems the availability of oil is a curse
therefore there is need to shift to other things that can bring revenue for the development
of the Middle East.

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