U.S. economic interests in Middle East development and trade

Middle East Community Development

The Middle East is a land of conflict which has for centuries raised the interest of the Westerner. Home of terrorism but also of mysticism, the Orient has captured the attention of the international context, which strives to support its development. Like a paradox, the countries in the Middle East are rich in numerous and valuable natural resources, such as natural gas, crude oil or timber. Yet, their levels of infrastructure are inadequate and the populations continue to live in extreme poverty. International institutions have intensified their efforts to address the most basic needs in these regions, but much remains yet to be done. However, a question that is being posed refers to the interests of the international community in becoming involved in the problems of the Middle East. The first section will focus on the United States' desire for development, followed by an exemplification of Egypt. Consequently, the Hands along the Nile Development Services will be assessed, all to be rounded up in a concluding remarks section.

2. Importance of Development to the United States

The rationale behind the United States' interests in seeing developments in the Middle East is a dual one, with the first set of arguments being altruistic and referring to issues such as a desire for world peace or the elimination of starvation. The second set of arguments is however more focused on the personal interests of the North American country and the most notable of these elements refers to the fact that the Middle East represents a land rich in natural resources, from where vast materials and commodities get sent to the U.S. Otherwise put, the Middle East constitutes a great import source and the United States is interested in preserving and improving it.

Saudi Arabia for instance exports mainly petroleum and petroleum-based products, which constitute an estimated 90% of all of their trade commodities. The U.S. represents their largest export partner, with the largest share of 17.1% petroleum going to the North American country. While the palette of exported products is vaster for Pakistan and includes primarily textiles, rice, leather, chemicals and manufactured items, the situation is similar in the meaning that the largest portion of their products (18%) goes to the United States, which is their largest export partner. It could also be argued that the United States is interested in seeing developments in the Middle East as the region represents a destination for the American products. While this is true and the American manufacturers do export some of their commodities to the Oriental market, the actual percentage to U.S. revenues is reduced. The Pakistani markets for instance only import 5% of all their sold goods from the United States (Central Intelligence Agency, 2009). Consequently then, it can be concluded that the main economic interest is that of developing the region that offers access to cost effective and abundant natural resources.

Aside petroleum and natural gas however, the Middle East plays a direct role in creating food and this is a valuable characteristic sought out by the United States. To best understand this feature, one should look at the relevant case in Somalia. The country is one of the poorest economies of the globe, with national limitations in politics and agriculture (less than 2% of their land is arable). In this context, the population is mostly nomadic and gets by raising cattle, sheep, camels and other animals. Economic development is based on the export of livestock, accounting for as much as 80% of all exports, in some years. To the United States and other civilizations, this flow of livestock increases access to food and the ability to feed the populations -- a growing challenge in the contemporaneous society in which the natural resources fade away and the population of the globe continues to increase.

Then, in terms of business opportunities, the Middle East reveals a series of comparative advantages and could easily be seen as a favorable destination to open plants or conduct various business operations. Upon the commencement of these activities, the American entrepreneurs would benefit from the comparative advantages of the Oriental countries, such as extremely low cost workforce or an abundance of natural resources. Yet, for the time being, it is next to impossible to conduct fruitful operations in the region due to the vast limitations. To point out some of the most notable such limitations, one should consider the increased levels of corruption, political instability and even the lack of adequate political structure in some countries, poor telecommunication means and a generally inadequate infrastructure. All these shortages could be resolved through developmental processes which would in the end create more sustainable business environments, where the United States could operate and increase its international gains.

4. Conclusions

Through its features, the Orient has captured the attention of numerous players in the international context, which strive to see that development is brought to the area. The interest of the United States in the development of the Middle East region is twofold, on the one hand sitting the altruist desire to resolve the problems in the area, ensure peace and stability and reduce chronic hunger. Yet, on the other hand, there is the direct economic interest, revolving basically around the fact that the Middle East represents a rich source of cost effective labor force, valuable business opportunities, as well as an important trade partner. Additionally, it offers access to valuable natural resources, such as timber and oil, which are beginning to become scarcer in other global regions.

Egypt is an outstanding member of the Middle East community and the elements that differentiate it constitute the main reasons as to why developmental focus should be placed on the Nile-bisected state. More specifically, the setting on the Nile River has allowed it to more adequately and fruitfully use its already scarce agricultural land. Then, the once centralized economy has opened its door to international trade and constitutes a valuable partner. Finally, the country is prepared for change and proof of this is obvious in the reforms they have already implemented and the results these endeavors have by now generated.

Despite these developments however, much remains to be done and the country needs the assisted support of various international institutions that will help Egypt make the transition from an enclosed and less developed economy to a highly developed and successful country. One such entity is the Hands Along the Nile Development Services, which has already managed to improve the quality of social services as well as other issues, all to lead to improved living conditions.

References:

Ezza, A., The Gateway to Egypt -- The Land of Opportunities, The Confederation of Egyptian European Business Association, Retrieved from http://www.imove-germany.org/images/05-09-14_Ezz_Wirtschaftliche_Rahmenbedingungen.pps on June 23, 2009

2006, Egypt: U.S.$200 Million from WB to Develop Railways, Encyclopedia.com, http://www.encyclopedia.com/doc/1G1-145748342.html last accessed on June 23, 2009

2006, HANDS Website, http://www.handsalongthenile.org last accessed on June 23, 2009

2009, The World Factbook, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html last accessed on June 23, 2009

About Hands Along the Nile Development Services, Inc. Volunteers for Prosperity, http://www.volunteersforprosperity.gov/busorg/profiles/handsalongthenile.htm last accessed on June 23, 2009