Professional Documents
Culture Documents
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ACKNOWLEDGEMENT
We would like to thank our teacher for this course Mr. Liaquat Ali for giving us an amazing opportunity to study the economic activities and trends of a country of our own choice. It enhanced our theoretical knowledge and gives us real experience to apply the theories and models we have studied in the class. We especially like to give our gratitude to you for this opportunity. The most interesting part was studying the major economic variables and specially applying and comparing the model and theories. We have selected PAKISTAN because it is our country. We have tried to put our best in this report. We hope that you will like our efforts.
Thank you.
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Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines in Mecca and Medina. The king's official title is the Custodian of the Two Holy Mosques. The modern Saudi state was founded in 1932 by ABD AL -AZIZ bin Abd alRahman Al SAUD (Ibn Saud) after a 30-year campaign to unify most of the Arabian Peninsula. A male descendent of Ibn Saud, his son ABDALLAH bin Abd al -Aziz, rules the country today as required by the country's 1992 Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. The continuing presence of foreign troops on Saudi soil after the liberation of Ku wait became a source of tension between the royal family and the public until all operational US troops left the country in 2003. Major terrorist attacks in May and November 2003 spurred a strong on-going campaign against domestic terrorism and extremism. King ABDALLAH has continued the cautious reform program begun when he was crown prince. To promote increased political participation, the government held elections nationwide from February through April 2005 for half the members of 179 municipal councils. In December 2005, King ABDALLAH completed the process by appointing the remaining members of the advisory municipal councils. The king instituted an Inter Faith Dialogue initiative in 2008 to encourage religious tolerance on a global level; in February 2009, he reshuffled the cabinet, which led to more moderates holding ministerial and judicial positions, and appointed the first female to the cabinet. The country remains a leading producer of oil and natural gas and holds more than 20% of the world's proven oil reserves. The government continues to pursue economic reform and diversification, particularly since Saudi Arabia's accession to the WTO in December 2005, and promotes foreign investment in the kingdom. A burgeoning population, aquifer depletion, and an economy largely dependent on petroleum output and prices are all ongoing governmental concerns. The 2010 -11 uprising across Middle Eastern and North African countries sparked modest incidents in Saudi cities, predominantly by Shia demonstrators calling for the release of detainees and the withdrawal from Bahrain of the Gulf Cooperation Council's Peninsula Shield Force. Other relatively minor, non-Shia demonstrations focused on labor, prisoner, and infrastructure complaints. Protests in general were met b y a strong police presence, with some arrests, but not the bloodshed seen in protests elsewhere in the region. King ABDALLAH in February and March 2011 announced a series of benefits to Saudi citizens including funds to build affordable housing, salary increases for government workers, and unemployment benefits. The King also announced that Riyadh would begin preparations for a second round of municipal elections in September 2011.
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Area
total : 2,149,690 sq km countr y compari son to the worl d: 13 l and: 2, 149, 690 sq km water : 0 s q km Ar ea - compar ative: s light ly more t han one-fifth the s ize of the US
Land boundaries : total : 4,431 km bor der countries: I raq 814 km, J ordan 744 km, Kuwait 222 km, Om an 676 km, Qat ar 60 km, UAE 457 km, Yem en 1, 458 km Coastli ne: 2,640 km
Mari time clai ms: ter ritorial sea: 12 nm conti guous z one: 18 nm conti nental shel f: not s pecified Cli mate: hars h, dry desert wit h great t emperature ext remes Nati onali ty: noun: Saudi(s) adjective: Saudi or Saudi Arabian
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Political Structure
Countr y name : conventi onal l ong form: Kingdom of Saudi Arabia conventi onal shor t for m: Saudi Arabia l ocal l ong form: Al Mam lakah al Arabiyah as Suudiyah l ocal short for m: Al Arabiyah as Suudiyah
Gover nment type : monarc hy Unif ic at ion of t he Kingdom , 23 Sept ember (1932)
Consti tuti on: gov erned acc ording t o I slamic law; the Bas ic Law t hat art iculates the gov ernm ent's right s and res pons ibilit ies was prom ulgated by royal dec ree in 1992
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Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petrol eum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Almost 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infras tructure projects to advance Saudi Arabia's economic development .
GDP (pur chasi ng power par ity) : $622 billion (2010 es t.) countr y compari son to the worl d: 23 $599.5 billion (2009 est .) $596 billion (2008 es t.) note:dat a are in 2010 US dollars GDP (offi ci al exchange r ate) : $443.7 billion (2010 est .)
GDP - r eal gr owth r ate : 3.7% (2010 est. ) countr y compari son to the worl d: 105 0.6% (2009 est. ) 4.2% (2008 est. )
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Agriculture Sector
Agri cul tur e - pr oducts: wheat, barley, t omat oes, m elons, dat es, citrus; m utt on, chick ens , eggs, m ilk
Industrial Sector
I ndustries : c rude oil product ion, pet roleum refining, bas ic petroc hem ic als, ammonia, indust rial gas es, s odium hydroxide (c aus tic s oda), c ement, f ert ilizer, plast ics, met als, c ommerc ial s hip repair, c ommercial airc raf t repair, c ons truct ion I ndustrial pr oducti on gr owth r ate : 3.3% (2010 est. ) countr y compari son to the worl d: 107 Electri city - pr oducti on: 194. 4 billion kW h (2009 est .) countr y compari son to the worl d: 20 Electri city - consumpti on: 174. 5 billion kW h (2008 est .) countr y compari son to the worl d: 20 Electri city - expor ts: 0 kW h (2009 es t.)
Oil - pr oducti on: 10. 52 million bbl/ day (2010 est. ) countr y compari son to the worl d: 1
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Oil - consumpti on: 2.643 million bbl/ day (2010 est. ) countr y compari son to the worl d: 8 Oil - expor ts: 7.635 million bbl/ day (2009 est. ) countr y compari son to the worl d: 1 Oil - i mports : 83, 150 bbl/ day (2009 est. ) countr y compari son to the worl d: 71 Oil - pr oved reserves : 262. 6 billion bbl (1 J anuary 2011 est. ) countr y compari son to the worl d: 1 Natur al gas - pr oducti on: 83. 94 billion cu m (2010 est. ) countr y compari son to the worl d: 11 Natur al gas - consumpti on: 83. 94 billion cu m (2010 est. ) countr y compari son to the worl d: 9
Natur al gas - pr oved r eser ves : 7.807 t rillion c u m (1 J anuary 2011 est .) countr y compari son to the worl d: 4 Curr ent account bal ance : $70. 1 billion (2010 est. ) countr y compari son to the worl d: 6 $21. 43 billion (2009 est .)
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Expor ts - par tners : J apan 14. 3%, China 13.1%, US 13%, South Korea 8. 8%, I ndia 8. 3%, Singapore 4. 5% (2010)
I mports : $88. 35 billion (2010 est .) countr y compari son to the worl d: 32 $87. 08 billion (2009 est .) I mports - commodities: machinery and equipm ent , f oodstuffs, c hemic als, m otor v ehic les , t ext iles
I mports - par tner s : US 12. 4%, China 11.1%, Germany 7. 1%, Japan 6. 9%, Franc e 6. 1%, India 4. 7%, Sout h Korea 4.2% (2010)
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Labor f orce : 7.337 million countr y compari son to the worl d: 61 note: about 80% of the labor forc e is non -nat ional (2010 est .)
Labor force - by occupati on: agri culture: 6.7% i ndustr y: 21. 4% ser vi ces: 71. 9% (2005 est .)
Unempl oyment rate: 10. 8% (2010 est. ) countr y compari son to the worl d: 117 10. 5% (2009 est. ) note: dat a are f or Saudi m ales only (loc al bank est imat es; s ome es tim at es range as high as 25%)
Populati on bel ow pover ty li ne : Populati on : 26, 131, 703 (J uly 2011 est. ) countr y compari son to the worl d: 46 note:inc ludes 5, 576,076 non-nat ionals
Age str ucture : 0-14 years: 29. 4% (m ale 3, 939,377/f emale 3, 754, 020) 15-64 year s: 67. 6% (male 9,980, 253/ fem ale 7, 685, 328) 65 year s and over : 3% (m ale 404, 269/f emale 368,456) (2011
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Househol d i ncome or consumpti on by per centage share : l owest 10%: NA% hi ghest 10%: NA%
I nvestment (gr oss fixed) : 22. 9% of GDP (2010 est. ) countr y compari son to the worl d: 78
Budget : r evenues: $197.3 billion expendi tures: $167. 1 billion (2010 est .)
Taxes and other r evenues : 44. 5% of GDP (2010 est. ) countr y compari son to the worl d: 27
Budget sur pl us (+) or deficit ( -): 6.8% of GDP (2010 est. ) countr y compari son to the worl d: 10
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Publi c debt : 16. 6% of GDP (2010 est. ) countr y compari son to the worl d: 115 22. 4% of GDP (2009 est. )
I nfl ati on rate (consumer pr ices) : 5.4% (2010 est. ) countr y compari son to the worl d: 155 5.1% (2009 est. )
Commerci al bank pri me lendi ng rate : 7.2% (31 Decem ber 2010 es t. ) countr y compari son to the worl d: 139 7.2% (31 Decem ber 2009 es t. )
Stock of narr ow money: $166.8 billion (31 Dec ember 2010 est. ) countr y compari son to the worl d: 21 $139.1 billion (31 Dec ember 2009 est. )
Stock of br oad money: $288.1 billion (31 Dec ember 2010 est. ) countr y compari son to the worl d: 31 $274.4 billion (31 Dec ember 2009 es t. )
Stock of domesti c cr edi t : $2. 693 billion (31 Dec ember 2010 est. ) countr y compari son to the worl d: 123 $2. 248 billion (31 Dec embe r 2009 est. )
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Growth in savings and investments Investment reaches to 10% of the GDP Some regional growth
Characteristics of SAUDI ARABIAS Economy SAUDI ARABIA s Industrial growth rate is high and industries are growing at rapid pace. Industrial sector is 61% of the Economy. Rapid growth can be seen in investment Investment is almost 27.6% which shows the high investment rate in the country. SAUDI ARABIA has geographic significance and 1th largest oil producer, emerging energy super power and growing capabilities of nuclear and advanced weapons. Agriculture sector in SAUDI ARABIA is not too much productive and the labor employed in this sector is gradually reducing.
Besides these characteristics of the TAKE-OFF stage, some characteristics of other stages are also similar to that of Iran. Like the one characteristic of Drive to Maturity Stage, Increase in levels of technology utilized, it can be compared with SAUDI ARABIA because SAUDI ARABIA continuously improving the technology utilized in the industrial sector. Similarly like the characteristic of High mass consumption
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Comments
The Rostow growth model suggests that SAUDI ARABIA is currently in aggressive growth age and the economic growth is sustainable in the future. This is relatively accurate about the SAUDI ARABIAS economy as it is really performing well and has good industrial growth rate as well as high human development rate. Regional importance and growth is increased because SAUDI ARABIA has large oil and gas reserves and geopolitical importance of SAUDI ARABIA has made it more superior than other Mid Eastern nations. Though, the agriculture sector of SAUDI ARABIA was not gone through the land reforms and technological improvements so that the pace of agricultural sector is slower than the other sector and we can say that SAUDI ARABIAS agriculture sector has skipped the second stage of the model. This model assumes that all the nations are evolutes and reached to the maturity through these stages but this model has many pitfalls and it cannot explains or depicts the economic outlook as it shows for the developed nations. The differences in the economy, climate, culture, and political environment effect the models explanation.
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SAUDI ARABIAN Government specially focused on the growth of investment within the country for which SAUDI ARABIAN government has decreased the interest rates. Government also focused to encourage public savings.
= 6.9%
This suggest that with the current Capital output ratio and saving ratio Saudi Arabians Economy can grow at 6.9%. The current growth rate of the economy is estimated at 3.7%. This model is showing that with the current output and saving ratio Saudi Arabias economy can sustain at 6.9% growth rate.
Comments
What are the reasons due to which the economy is not growing at the rate suggested by this model? The reason why model is not accurately predict is that model assumes that the factors which are playing key role in the growth of developed nations will remain same in the developing or underdeveloped countries. These factors include effective administration and strategic planning, skilled labor force, highly integrated and efficient money and commodity markets, and the motivation to succeed. The main factor is the inefficiency of the productive factors especially the unskilled labor is the main reason of it.
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Comments
This model did not define how the labor is transferred and similarly in the scenario of Saudi Arabia
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Annual report on Saudi Arabia status by National Security council of US (2010) Economic Development 8th Edition by Michael P. Todaro and Stephen C. Smith The Economist Fact book (2010) UNDP Reports (2009-2010, 2008-2009, and 2007-2008) Sagia .gov.com
http://www.google.com.pk/search?hl=en&gbv=2&gs_sm=e&gs_upl=1569l18834l0l19072l43l42l3l16l3l1l1005l6026l24.7.3.7-1l15l0&q=Capital%20output%20ratio%20of%20saudi%20arabia&spell=1&sa=X http://books.google.com.pk/books?id=4VcOAAAAQAAJ&pg=PA441&lpg=PA441&dq=Capital+output+ratio+of+saudi +arabia&source=bl&ots=Ox28voVCQc&sig=olgQY2rJ1P5tN7_bYaSOzw-f2Y0&hl=en#v=onepage&q&f=false
http://www.economywatch.com/economic-statistics/Saudi-Arabia/Gross_National_Savings_Percentage_of_GDP/ http://www.nationmaster.com/country/sa-saudi-arabia/eco-economy http://www.econstats.com/weo/CSAU.htm http://www.economywatch.com/economic-statistics/economic-indicators/Gross_National_Savings_Percentage_of_GDP/ http://books.google.com.pk/books?id=K0NAAAAQAAJ&pg=PA57&lpg=PA57&dq=Capital+output+ratio+of+saudi+arabia&source=bl&ots=i01XC9srAE&sig=xeYW_1yyhFc8L rJCbuzzRH9-9PQ&hl=en#v=onepage&q=Capital%20output%20ratio%20of%20saudi%20arabia&f=false
https://www.cia.gov/library/publications/the-world-factbook/fields/2011.html Wikipedia
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