The Effect Of Political Ambiguity On Economic Development

The effect of political ambiguity on economic development: The case of MENA Contents 1. INTRODUCTION 4 2. TECHNOLOGY AND DEVELOPMENT STRATEGY 6 2.1 High technology strategy 11 2.2 Medium technology strategy 11 2.3 Low technology strategy 12 3. Agglomeration and Cluster Effect 13 4. Risk, Uncertainty and Ambiguity 16 4.1. Decision under Risk 18 4.2. Decision under Ambiguity 21 4.3. Political ambiguity in Middle East and North Africa 23 5. DEVELOPMENT UNDER POLITICAL AMBIGUITY IN MENA 26 5.1. Overview of region 26 5.2. Group 1 31 5.3. Group 2 37 6.4. Group 3 41 Conclusion 48 References 50 1. INTRODUCTION Middle East and North Africa (MENA) region was homeland for important ancient cultures†¦show more content†¦Government employment was seen as a solution of melting down the high rate of unemployment but government employment reached its limits. Another consequence of government employment is that education system is not arranged in accordance with skill and knowledge requirements of private sector. Additionally, technology level is unsatisfied and far behind from other developing regions. Education, judiciary system, political structure and property rights of Middle East and North Africa countries are generally not scheduled in agreement with requirements of high knowledge, technology, skill and talent of labours. This decline over the course of history can be related with choice of development strategies in MENA region. In this paper, it was tried to illustrate the link between technology based development strategies and political ambiguities, and effect of this link on economic development. 14 countries in Middle East and North Africa were analysed to illustrate this link between 1990 and 2010. These countries are; Syria, Yemen, Algeria, Libya, Iraq, Qatar, Iran, Jordan, Kuwait, Bahrain, Egypt, Morocco, Saudi Arabia, United Arab emirates. Countries` choice of development strategy is important to determine the future of development path. On the other hand, inappropriate development strategy can be an obstacle of economic development and can worsen economic situation of countries. Development strategies are distinguished in