Misfiring on all cylinders: Middle East economies fall behind

[dArKeR]

Forget that cliche image of the "oil rich" Arabs. Not only has the Arab world had a sick economy for years despite its fat-cat image, experts say the region's financial environment has hit its lowest point ever amid the war in Iraq and the bitter violence between Israelis and Palestinians.

Unemployment averages 15 percent -- higher among the young -- and potential foreign investors are scared off by the Middle East's turmoil and bureaucracy. Real income for most Arabs has shrunk, and the generous welfare benefits that oil states adopted to maintain stability can no longer keep pace with burgeoning populations.

"Things are worse than they've ever been in my memory, and in the memories of others who have studied the region," said Alan Richards, a professor of economics at the University of California, Santa Cruz, who has been a consultant on the Middle East to the US government and UN agencies.

http://www.taipeitimes.com/News/edit/archives/2004/02/10/2003098228

[aquart]

1. People won't invest in car bomb economies.

They just won't.