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Lecture 8

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Political Science
POLI 341
Julie Norman

Tuesday, February, 5 , 2012 Lecture 9 POLI 341 Political Economy  Regional economic trends and political causes/impacts?  Oil as factor in ME states’ international relations? In inter-Arab relations? In domestic politics? Role of oil ever exaggerated?  How has the emergence and strengthening of the gulf states since 1970s influenced in ME region? What role might the gulf states play in newly emerging ME?  How can we best understand the gulf cooperation council? Is it a security alliance? Economic cooperative? How has it evolved since its inception? Regional Economic Trajectories  1950s-70s: strong economic growth; up an down depending on conflicts;  1980s-2000s: economic decline; still above 0 but much more stable  why the shift?  Conditions of war and conflict- 80s: Iran-Iraq war and then Kuwait- Iraq war  oil prices  economic imbalances not unique for ME; inequality between rich and poor  deficient political systems; long term rentier state impacts 1950s-70s: Welfare State Model  socialist approach to economy; state centered  interventionist-redistributive orientate: state is very involved and high regulation  heavy state control over economy  import substitution industrialization; Egypt tried to become self sufficient in order to reduce foreign dependence on imports  nationalization of private/foreign assets: ex: Suez Canal; oil industry  state programs for education, housing, health and food- helps state gain legitimacy since it provides lots of social programs which is important for state development but this did not prove sustainable in the long run  centralized bureaucracies, unions, associations  social/political implications?  Positive in short term  Growth in health care and access to education  “social contract”- dependence on state which leads to legitimacy but can backfire because it can lower incentive to challenge the state  but governance gap? Low in civil liberties, participation; livelihood tied to the state; decrease in political opposition leads to lower political participation and liberty; less incentive to status quo  variations? (Egypt-Syria were radical social states while Morocco/Jordan still more open to private industry and sector development)  heavy state model- not only unique to ME; kind of
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