How oil has shaped the social economic and political environment in the Middle East

However, oil has brought its fair share of problems to the countries in the region. The economy of the Middle East depended heavily on oil for its development. Oil was and continues being, the major source of revenue for the governments in the region. “In no other area of the world have so many states been so reliant on income derived from rent (sources of government revenue other than tax) as in the Middle East. ” (Gelvin, 256)Oil revenue accounts for the largest proportion of government revenue in the region. Oil prices rose tremendously, up to 380% of the original prices. As a result, wealth flowed back from industrialized countries into the countries. The revenue was used in the development of the countries.

Although the high oil prices sparked economic growth in the Middle East, it came at a cost. The high prices made exploitation of oil in other regions profitable. Countries exporting laborers gain from the remittances flowing into the country from the laborers working abroad to their families. In addition to gaining foreign revenue, the exportation of workers acts as a remedy to high population and existing educational gaps for the country. However, dependence on the remittance from their laborers in foreign countries puts the country at economic risk if the importing country sends back the laborers to their country (Gelvin, 264). The presence of oil in the Middle East has made the world powers to have particular interests in the region. In particular, the United States has shown interest in the region.