Hmmm... article in todays AFR by Alan Mitchell attempts to put...

Hmmm... article in todays AFR by Alan Mitchell attempts to put the microscope on the real reasons for Middle East tensions that have manifested as anti-west agro with terrorism as the tool of choice and culminating in the current situation in Iraq.

"Almost the whole of the great Muslim region, from Pakistan in the East to Morocco in the West, is an economic disaster and demographic time bomb."

Economic growth rates are well below developing countries (GDP per capita about a third) with population growth rates amongst the highest in the world.(some show 50% under 18 years of age)

Employment growth has been lagging behind population growth since the 1980's with unemployment rates at 15% and rising.

These contrast and have been concealed over time due to the vast Oil wealth that has sustained these economies.

All of these economies have one thing in common which is an almost total lack of reform over the last decade.

A survey by the International Monetary Fund lists 6 major categories finding that MENA (middle east and north africa) economies finished well last in the list including Asia, Latin America and OECD cousins.

1. Voice & Accountability
2. Government effectiveness
3. Rule of Law
4. Political stability
5. Regulatory quality
6. Control of Corruption

Behind the weakness of economic reform lies a failure to tackle political reform.

The region is noted for authoritarian regimes and weakness of state institutions.

The key institutions of a modern state - freely elected legislatures, independent judiciaries, government accountability, safeguards for human rights, an independent media, unions and professional organisations are largely non-existent.

The study openly slams the region as unconducive to investment, self-improvement, innovation and enterprise, to intellectual freedom and even the most basic participation in public life.

The region is also the most politically volatile and violent.

Reform must come and either way, the West will have to pay ... it's dependence on Oil is too great and the problem is not about to fix itself or simply go away.

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This is only my view ... read the red stuff.