November 2, 2006
“Our first and most pressing problem is how to do away with warfare as a method of solving conflicts between national groups within a society who have different views about how the society is to run.”
— Margaret Mead (1901-1978)
This semester, 35 students are delving into the history, culture and tradition, as well as economics, of such countries as Egypt, Israel, Saudi Arabia and Turkey — and finding out not only about the “Economics of the Middle East” but about themselves and others.
“This is a large, complex and diverse region that is of critical and growing importance to the larger, global economy,” Jane Hall, professor of economics, noted in her course objectives for the upper-division class. “Many countries in the Middle East have been slow to develop economically, and many are dependent on the export of oil and natural gas to support national economies. The history of the political economy will be studied as the foundation for understanding current issues and discussing the potential for economic growth and stability.
“Our students need this information,” she said. “They need to know the challenges that face that part of the world.”
The goal, Hall added, is to give students a broad understanding of the region in order to move onto an economic analysis.
“This region has the potential — once it is politically stable — of growth in business opportunities. Therefore, it is essential that our students have a good understanding of the regional economy and its social structure,” said Anil Puri, dean of the College of Business and Economics.
“Hopefully, if we understand the region and its people better, we can have a better connection with them,” said Morteza Rahmatian, chair and professor of economics.
The students themselves realize the importance of the course — the class is filled even though approval for it came too late for it to be included in the fall catalog.
“We have a real mix of students, including those who have a heritage tied to the Middle East,” Hall said. “They want to learn more about the puzzle, how the pieces all fit together. They really want to understand.”
She said topics she’s covering in the class include the reasons large oil reserves are not an unalloyed boon to oil-rich countries, which often fail to reach a sustainable level of economic development over time. Other topics are the reasons that OPEC has been a reasonably successful commodity cartel when such cartels nearly always fail to keep prices up; the culture, modernization, dependence on oil, labor and population, poverty, migration, environment and state management of the economy; and the economic impact of conflict and alternative paths to development.
Hall, a nationally known expert on the economic costs of air pollution, has a background suited to teaching in this arena. Besides having lived in the Middle East, she has served as an economist for an oil company and as an assistant executive officer for the California Air Resources Board. She has researched and written about the effects of war on regional economies and she is a member of professional organizations associated with ecological economies and Middle East studies.
“This is such an exciting time to teach this course,” Hall said. “It is a wonderful opportunity to increase understanding and mutual respect.” 
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