"Why the Middle East is Economically Underdeveloped" was published in the Journal of Economic Perspectives. This database consists solely of economic related material. The article in mention addresses some of the reasons why the Middle East is not as economically developed as some other countries. The author states that several Middle Eastern institutions are to blame for their struggling economy. These institutions include the Islamic law of inheritance, which inhibited capital accumulation, the Islamic law's lack of the concept of corporation, and Islam's distinct form of trust. These institutions were not always harmful, but their inability to change and adapt to a modern economy is what ultimately harmed the Middle East. The article goes into some depth about other aspects of the Middle Eastern economy, but these facts only support the primary reasons that are listed. One other factor that harmed the economy was an interpretation of the Quran that prohibited interest payments, which had a negative effect on the banking industry. The main point of this article is that the Middle East once had a prosperous economy, but their tradition and inability to adapt is what ultimately caused their downfall. This article is helpful as a reference to the formation of another economy in comparison to the United States. This was one article is an issue of a journal that discusses the Middle Eastern economy, the war in Iraq, and oil prices.
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.
Page Comments
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.