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Prior to the 20th century, the Middle Eastern nations could easily have been categorized as third world countries. It was not until the early 1930’s that oil production was begun and not until the mid-century that oil became an important commodity in the world market. Thus, the Middle Eastern countries experienced a huge influx of capital. This wealth had a major impact on the Middle East, yet most Middle Eastern countries still retain a Third World status. The use of oil-revenues has had a major impact on the Middle East that distinguishes them from other Third World countries. Yet, at the same time, this wealth has not caused these countries to break free from this status in order to raise their status to that of major powers. Disagreements among Middle Eastern nations, their inability to effectively organize and political instability have all contributed to the Middle East remaining Third World.

Until the invention of the combustion engine, the oil industry only slowly developed. This was because oil was not a major commodity until it became more widely used in cars, planes and other engines. Until this time, there was little use for oil. Oil exploration in the Middle East began in the late 19th century with

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This promoted the development of towns; in fact, oil facilitated urbanization and caused many nomads to make permanent settlements. Because of this, oil production increased to 8. During this period, almost every oil nation became involved in some sort of war with the causes ranging from political to economic.

Different political objectives of the oil producing nations also caused problems. The States also became major employers. While security was a need in the region, defense spending was not the most productive use of funds.

OIL AND ECONOMY

Oil has had a significant impact on Middle Eastern Economies; however, impact has been different from country to country and for many different reasons. To do so, the States began nationalizing the oil industry. In fact, discussion of many of the countries could easily encompass an entire book. ), The Times Guide to the Middle East, London, 1996, pp. In 1909, the first pipeline used to transport oil was built by the Egyptian Oil Trust and by 1914, Persia was producing two million barrels of oil annually. These organizations also sought to solidify Middle Eastern solidarity from the West. On many occasions, States were forced to restrict the services previously mentioned, which caused public dissatisfaction. As oil revenue and wealth has increased in the Middle East, so have the economic and political power of the oil States.

Approximate Word count = 2278
Approximate Pages = 9 (250 words per page double spaced)

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