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Industrialization in the Middle East, Obstacles and Potential

Published online by Cambridge University Press:  09 March 2016

Ragaei El Mallakh*
Affiliation:
University of Colorado

Extract

Both public opinion and planners have generally emphasized and in some cases overestimated the importance of industrialization in the Middle East. Yet the needed research for sustained industrial development has lagged behind the desire for and interest in that sector and such research and literature are still in only the beginning phases.

Literature on Middle East industrial development has been constrained by, (1) modern industrialization is a relatively new phenomenon in the region. (2) Analysis of industry and its related sophisticated technology is heavily dependent on quantitative measurements and data, the inadequacy of which is still a major obstacle to researchers and writers. (3) Even with the dominant feature of Middle Eastern economics--oil--authors have tended to deal with the region overwhelmingly as a raw material producer rather than as a center for refining and processing. These difficulties have led to two approaches in literature on the Middle East's industrialization.

Type
State of the Art VIII
Copyright
Copyright © Middle East Studies Association of North America, Inc. 1973

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References

Footnotes

1. The series, under the general editorship of Sidney Alexander, is published by American Elsevier Publishing Company (New York) and includes volumes written and/or edited by Marion Clawson, Hans H. Landsberg, Lyle T. Alexander, The Agricultural Potential of the Middle East; Sam H. Schurr and Paul T. Homan, Middle Eastern Oil and the Western World; C.A. Cooper, S.S. Alexander, Economic Development and Population in the Middle East; P.Y. Hammond, S.S. Alexander, Political Dynamics in the Middle East; S.S. Alexander, The Economics and Politics of the Middle East.

2. E.g., Penrose, Edith, The Growth of Firms. Middle East Oil and Other Essays (London, Frank Cass, 1971),Google Scholar and The International Oil Industry in the Middle East (Cairo, National Bank of Egypt, 1968).

3. A sampling from these sources would include Department of Economic and Social Affairs, Economic Developments in the Middle East, 1945… (New York, 1955. onwards, issued annually); Economic and Social Office in Beirut, Studies of Selected Development Problems in Various Countries of the Middle East. 1971 (New York, 1971); Economic Mission for Africa, Economic Survey of Africa, Vol. II The North African Sub-Region (New York, 1968); Industrial Development Organization. Industrial Development—-Arab Countries 1 Report ofthe Symposium, Kuwait. 1-10 March 1966 (New York, 1967, Doc. No. ID/Conf. l/4R/4)( Industrial Development Organization, Industrial Estates in Europe and the Middle East (New York, 1968); Industrial Development Organization. Industrlal Development Survey (New York, 1969, a general overview with specific references to selected Middle Eastern countries); Industrial Development Organization, Small̵Scale Industries in Arab Countries in the Middle East (New York, 1970); International Bank for Reconstruction and Development, The Economic Development of Iraq (1952), … Jordan (1957), … Kuwait (1954)… . Syria (1955)… . Turkey (1951); International Symposium on Industrial Development, industrial Development in the Arab Countries 1 Selected Documents Presented to the Symposium on Industrial Development In the Arab Countries. Kuwait. 1̵10 March 1966 (New York. 1967). Two multination organizations which offer source materials on the oil industry relevant to the Middle East are the Organization of the Petroleum Exporting Countries (Vienna) and the proceedings of the Arab Petroleum Congresses (Cairo. League of Arab States).

4. Grunwald, Kurt and Ronall, Joachim 0., Industrialization in the Middle East (New York, Council for Middle Eastern Affairs Press, 1960)Google Scholar is by now seriously outdated and lacks in depth analysis of the major industrial thrusts in the region. For example, only nine pages of the 370 pages of text are devoted to the oil industry.

5. Aside from journals of various countries, the most current sources include the Middle East Economic Digest (London), Middle East Economic Survey (Beirut), and Middle East Economic Papers published by the American University of Beirut.

6. Wilmington, Martin, The Middle East Supply Centre (Albany, State University of New York Press, 1970)Google Scholar offers background and data on the impetus to regionalism and development as a consequence of World War II activities.

7. A sampling of sources on Iranian industry could include: Benedick, Richard E., Industrial Finance in Iran (Cambridge, Graduate School of Business Administration, Harvard University, 1964)Google Scholar; Boushehri, J., Financial Institutions in Iran (Washington, D.C., International Monetary Fund, 1957)Google Scholar; Central Treaty Organization of the Middle East, Symposium on Industrial Statistics. Teheran 1964 (Ankara, CENTO, 1964); Government of Iran, General Department of Public Statistics, Report on the Industrial Census of Iran. August 1963 (1963); Government of Iran, Ministry of Economy; Report on the Results of Annual Industrial Survey (publIshed yearly); Government of Iran. Ministry of Industry and Mines. Industry and Mines Statistical Yearbook (published annually); International Finance Corporation. Potentialities for Private Investment in the Chemical Industry in Iran (Washington. D.C.. 1961); Nahai, L. and Kimbell, C.L.. The Petroleum Industry of Iran (Washington, D.C., U.S. Department of the Interior, 1963)Google Scholar; United Nations, Economic Commission for Asia and the Far East, Industrial Development in Asia and the Far East. Vol. II (New York, 1966); United Nations International Labor Office. Problems of Employment Creation in Iran (Geneva, 1970). Other sources are the annual reports and studies of the Central Bank of Iran and Taqiqat e Eqtesadl (Economic Research), a quarterly journal published in Persian and English by the University of Teheran.

8. Gharier, Julian, Economic Development of Iran. 1900-1970 (London, Oxford University Press, 1971). P. 193.Google Scholar A concise chapter on manufacturing industry appears in pages 170-193.

9. Government of Iran, Plan Organization, The Fourth National Development Plan 1968-72 (Teheran, 1968), pp. 117-130.Google Scholar

10. Among basic data resources arei Banque nationale pour le commerce et l'Industrie, Les enterprises industrielles en Algerle et au Sahara (Algiers, 1960); Government of Algeria, Direction des mines et de la geologie, Rapport sur l'industrie miniere (published at intervals); Government of Algeria, Direction general des finances, Evolution de l'Industrie manufacturiere en Algerle. 1962̵1968 (l969); Government of Algeria. Ministry of Information. L'industrie en Algerle (1969).

11. Middle East Economic Digest. March 9, 1973, PP. 259-61; Middle East and African Economist. December 1972, p. 161) Middle East Economic Digest. June 2. 1972. pp. 603-4.

12. Langley, Kathleen, The Industrialization of Iraq (Cambridge, Harvard University Press, 1961)Google Scholar, especially pages 207-36 carefully outlines the development of industry to that date and the options open as the 1960's began. Other sources include: Government of Iraq, Bureau of Statistics, Report on the Industrial Census of Iraq, 1954 (1956); Government of Iraq, Central Statistical Organization, Results of the Industrial Survey (published at intervals); Government of Iraq, Department of Industrial Statistics, Industrial Statistics of Small Industrial Establishments (published at intervals); Jalal., F.The Role of Government in the industrialization of Iraq (London, Frank Cass, 1971).Google Scholar

13. United Nations, Industrial Development Organization, Industrial Estates in Europe and the Middle East (New York, 1968), p. 45.Google Scholar

14. Government of Saudi Arabia, Directorate General of Mineral Resources, Mineral Resources Bulletin (1965); Government of Saudi Arabia, Directorate General of Mineral Resources, Mineral Resources of Saudi Arabia: A Guide for Investment and Development (1965). Additional government sources are the annual report of the monetary agency, publications and statistics of the planning, financial and petroleum ministries.

15. Bank of Libya, Economic Research Division, Economic Bulletin (Tripoli, bi-monthly) and other selected studies! Government of Libya, Department of Census and Statistics, Preliminary Results of the Industrial Census. 1964 (1965); Government of Libya, Department .of Census and Statistics, Report of the Annual Survey of the Petroleum Mining Industry (published annually); Government of Libya, International Trade Center, Libya: The Market for Selected Manufactured Products from Developing Countries (1969); Rawle Farley. Planning for Development in Libya (New York, Praeger, 1971); Abdul Amin 0. Kubbah. Libya: Its Oil Industry and Economic System (Beirut, the Arab-Petro-Economic Research Center, 1964-); The Libyan Economic and Business Review (quarterly of the Center of Economics and Business Research, University of Libya, Benghazi).

16. Collection of industrial data on the Gulf states generally is still in the early stages. Among the more established sources are: Ragaei El Mallakh, Economic Development and Regional Cooperation (Chicago University Press, 1968); Government of Kuwait. The First Five Year Plan for Economic and Social Development. 1967/68- 1971/72 (1967. in Arabic); F. Kahnert. Aid Tying and Export of Nitrogenous Fertilizers from the Persian Gulf (Paris. Organization for Economic Cooperation and Development 1971); Kuwait Chamber of Commerce and Industry, Annual Report of Commerce and Industry and Bulletin (monthly, in Arabic); Kuwait National Petroleum Company. Annual Report (published yearly); Snavely, William P. and Sadik, Muhammed, Bahrain, Qatar and the United Arab Emirates (Lexington, Mass., Heath, 1972).Google Scholar

17. Charles Issawi, , “Growth and Structural Change in the Middle East,” Middle East Journal, summer 1971, p. 318.Google Scholar

18. Government of Turkey, Prime Ministry State Planning Organization, Second Five Year Development Plan, 1968̵1972 (Ankara, 1969); Organization for Economic Cooperation and Development, Economic Surveys by the OECD; Turkey (Paris, OECD, 1967); Federic Shorter et al., Four Studies in the Economic Development of Turkey (London: Frank Cass, 1967); Turkey, Union of Chambers of Commerce, Industry and Commodity Exchanges in Turkey, Economic Report (Ankara, 1963, 1964, 1967).

19. Jane Perry Clark , Carey and Andrew Galbraith, Carey, “Turkish Industry and the Five Year Plans,” Middle East Journal, summer, 1971, p. 354Google Scholar

20. Middle East and African Economist. December 1972, p. 156Google Scholar.

21. Government of Egypt, Ministry of Finance and Economy, Census of Industrial Production (published at intervals); Government of Egypt, Institute of National Planning, Monthly Review of of Economic and Social Events as well as an outstanding series of studies of Memoranda; Government of Egypt, Ministry of Industry, Industry after the Revolution and the Five Year Plan (1957) and The Second Five Year Industrial Plan (1960); Government of Egypt, Statistical Department, Census of Industrial Production (published at intervals)] Hansen, Bent and Marzouk, G., Development and Economic Policy in the UAR (Amsterdam, North- Holland Publishing, 1965); Charles Issawi, Egypt in Revolution (Oxford University Press, 1963);Google Scholar Patrick 0'Brien. The Revolution in Egypt's Economic System (Oxford University Press, 1966); other sources include the Ministry of Planning, Ministry of Social Affairs (labor reports), a number of publications by banks as the Central Bank of Egypt, Economic Review (quarterly); Bank Misr, Economic Bulletini National Bank of Egypt, Economic Bulletin (quarterly); and bv the Industrial Bankj excellent periodical literature available in L'Egypte contemporaine and Al-Iqtisadi (Economy), a bi-weekly published by Al-Ahram in Cairo.

22. Publications of the Government of Morocco relevant to industry include: Direction de 1'Industrie, Etudes d'enterprises Industrielles recommandees aux capitaux naHonaux and L'Industrie Bucriere au maroc (1907); Direction des Mines et de la Geologie. Etat des staTistiques des productions, des exportatlons et de ventes locales mlnieres (published at intervals); Division du Plan et des Statlstiques, L'lndustrle et les mlnesi comptes d'exploitation, effectifs employes, investlsscments realises 1 Service Central des Statlstiques. La situation de l'lndustrle … et les perspectives (published at intervals). A start on TunisTa's industry could be made with Willard Beling, A., Modernization and African Labori A Tunisian Case Study (New York, Praeger, 1965);Google Scholar Government of Tunisia, Office national du textile, Programme de deyeloppement de l'lndustrle textile dans le cadre du plan trlennal. 1962-1965 (1962); Government of Tunisia. Secretariat d'Etate au Plan et de I'Economie Nationale, Donnees statlstiques relatives a l'lndustrle tunisienne (1966) and L'emploi en Tunisie. situation de l'emploi en I963 et 1964. perspectives 1965- 1966 (1965); Claude Silberzahn. L'emplol en Tunisie en 1961 et 1971 (Secretariat de'Etate au Plan et de I'Economie Nationale, Tunis 1964); Sitbon, Maurice, L'implantation des enterprises en Tunisie (Tunis, Editions de la Fiscomptes, 1968).Google Scholar

23. Government of Syria, The Third Five Year Plan for Economic and Social Development in the Syrian Arab Republic. 1971-1975 (Damascus, Office Arabe de Presse et de Documentation, 1971); Hansen, Bent, Economic Development in Syria (Santa Monica, California, The Rand Corporation, 1969).Google Scholar

24. Publications of the Government of Jordan dealing with industry are ; Department of Statistics, Manufacturing Industrial Census. 1967 (1968), Manufacturing industry in Jordani Report on the Industrial Census of 1959 (1962). and Report on Labour and Industrial Survey in the Kingdom (published at intervals); Ministry of Economy, Census of Mining and Manufacturing Industries in Jordan. 1954 (1955) and Census of Wage Rates in Mining and Manufacturing Industries, 1954 (1955).

25. Shaliv, Avraham, “Israel Industry in the 1970's,Israel Quarterly of Economics (Tel Aviv and Jerusalem), spring 1972, p. 63.Google Scholar In 1969 diamonds made up 39.1 per cent of total industrial exports with a 1980 target of that industry contributing but 16.4 per cent of total industrial exports for that year. There is a substantial amount of economic literature dealing directly or indirectly with Israeli industry. A sampling could include: Bank of Israel, Annual Report and studies as Israel Commerce Banks, 1956-19611 A Profitability study (1963); Government of Israel, Central Bureau of Statistics. Census of Industry. 1952 (1954); Government of Israel, Ministry of Commerce and Industry, Israel's Industrial Future (1960); Government of Israel, Industrial Division, Preliminary Outlines for the Development of Industry. 1957-1961 (1957); Gur Ofer. The Service Industries in a Developing Economyi Israel as a Case Study (New York. Praeger, 1967); United Nations, Department of Economic and Social Affairs, The Development of Manufacturing Industry in Egypt. Israel. and Turkey (New York, 1958).

26. Asseily, Antoine E., Central Banking in Lebanon (Beirut, Khayat, 1967);Google Scholar Government of Lebanon, Ministry of National Economy, Industrial Census. 1955 (1957-58); Government of Lebanon, Ministry of Planning. Recensement de 1'Industrie au Llbaru resultats pour 1964 (1967); Nadim G. Khalaf, , Economic Implications of the Size of Nations; With Special Reference to Lebanon (Leiden, Brill, 1971).Google Scholar

27. These regional advantages have been examined in United Nations, Industrial Development Organization, Small Scale Industries in Arab Countries of the Middle East (New York. 1970), p. 23.

28. As of June 15, 1972; Z.A. Nasr, The Kuwait Fund Scheme for the Guarantee of Inter-Arab Investments (Kuwait, Kuwait Fund for Arab Economic Development, May 1972).

29. Middle East and African Economist. March 1972, p. 32: Middle East Economic Digest. January 14. 1972, pp. 33-34, 50. For recent investment laws in Syria aee Middle East Economic Digest. June 23, 1972, p. 695, and for Jordan's new encouragement of investment law, a resume in Middle East Economic Digest. December 1, 1972, pp. 1399-1400.

30. United Nations, Economic and Social Council, Committee for Industrial Development, International Industrial Development, Conference on Industrial Development for the Arab States. Kuwait. 1-10 March 1966 (E.C. 5/135/Add. 4, May 16, 1966). p. 5 (mimeographed); Charles Issawi, “Growth and Structural Change in the Middle East,” p. 318.