Political Instability and the Oil Economy in MENA

Understanding and addressing the root causes of political instability in MENA is essential for achieving long-term stability and prosperity.

Mitsuhisa Fukutomi
Mitsuhisa Fukutomi
Oil rigs loom under a cloudy sky. Photo by Joiseyshowaa (CC BY-SA).

Understanding Political Instability

Political instability in the Middle East and North Africa (MENA) has been a persistent and complex issue for decades. The region’s tumultuous history, marked by colonial legacies, economic dependencies, and significant geopolitical interests, has created a challenging environment for stability. MENA is often cited as one of the most conflict-prone areas globally, experiencing numerous wars, civil conflicts, and political upheavals. This instability not only affects the local populations but also has profound implications for global peace and security.

Understanding the root causes of political instability in MENA requires a multidimensional approach. Historical factors, particularly the impact of colonialism, have left deep scars on the political and social fabric of the region. Arbitrary borders drawn by colonial powers disregarded ethnic and tribal affiliations, leading to enduring conflicts and weak nation-states. Furthermore, the economic structure of many MENA countries, heavily reliant on oil revenues, has fostered a rentier state model. This economic dependency has stifled democratic development and perpetuated autocratic regimes.

The legacy of colonialism continues to shape the region’s political dynamics, contributing to ongoing instability and conflict.

Geopolitical dynamics have further complicated the region’s stability. During the Cold War, MENA was a focal point of rivalry between the United States and the Soviet Union, resulting in numerous proxy wars and military interventions. Even in the post-Cold War era, the strategic importance of MENA continues to attract foreign involvement, particularly from major powers seeking to secure energy resources and exert influence.

This article analyses these various factors, providing a comprehensive analysis of the historical, economic, and geopolitical elements that contribute to political instability in MENA. By examining these dimensions, we can gain a better understanding of the underlying issues and explore potential pathways towards greater stability and peace in the region.

Historical Context: Colonial Legacies

The colonial history of the Middle East and North Africa (MENA) region has left a profound impact on its current political landscape. Many countries in MENA were once colonies of European powers such as Britain, France, and Italy. The legacy of colonial rule has contributed to numerous societal and political challenges that persist today.

Isolated oil pump under expansive skies, a symbol of the oil industry's vulnerability to political shifts.
A lone oil pumpjack stands in a rural landscape. Photo by Yoni Lerner (CC-BY-SA).

One of the most significant issues arising from colonialism is the arbitrary drawing of borders. These borders were often established without regard for the existing ethnic, tribal, and religious divisions, leading to deep-seated internal conflicts and hindering effective nation-building.

The Palestinian-Israeli conflict, which continues to this day, is another direct consequence of the colonial era’s geopolitical decisions.

Several key conflicts in the region highlight the lasting impacts of colonialism. The Middle East Wars, spanning from 1948 to 1973, involved multiple conflicts between Israel and its Arab neighbors. These wars were partly rooted in the legacy of colonialism and the establishment of Israel, which led to significant territorial disputes and displacement of populations. The Palestinian-Israeli conflict, which continues to this day, is another direct consequence of the colonial era’s geopolitical decisions.

The Lebanese Civil War (1975-1990) is another example where colonial legacies played a critical role. Lebanon’s borders and political structure were significantly influenced by French colonial rule, which created a fragile balance of power among various religious and ethnic groups. This delicate balance eventually broke down, leading to a prolonged and devastating civil war.

Similarly, the Gulf War of 1991 had its roots in the colonial history of the region. The arbitrary borders drawn by colonial powers did not align with the historical, tribal, and ethnic realities on the ground, leading to long-standing territorial disputes. Iraq’s invasion of Kuwait and the subsequent international response were influenced by these unresolved issues.

These historical conflicts illustrate the complex interplay of ethnic, religious, and political tensions in MENA, which were exacerbated by colonial interventions. The legacy of colonialism continues to shape the region’s political dynamics, contributing to ongoing instability and conflict. Understanding this historical context is crucial for addressing the contemporary challenges facing MENA and fostering a more stable and peaceful future.

Economic Factors: The Oil Economy

The economy of the Middle East and North Africa (MENA) region is predominantly driven by oil, significantly influencing both domestic politics and international relations. A key concept in understanding MENA’s political dynamics is the rentier state.

The complex structure of an offshore oil rig stands stark against a clear sky, symbolizing the robust infrastructure of the energy sector amidst the constant threat of political instability in global markets.
A detailed view of an offshore oil rig. Photo by Tommy Ellingsen (CC BY-SA).

In a rentier state, a substantial portion of the country’s revenues comes from renting its indigenous resources, primarily oil, to external clients. This economic model has profound implications for the region’s governance and stability. Rentier states exhibit several notable characteristics.

  • First, autocratic leaders in these states maintain power by using oil revenues to provide various benefits to the population without imposing taxes. This system allows leaders to buy political loyalty and social peace, reducing the pressure to develop inclusive political institutions or accountable governance structures.
  • Second, government finances in rentier states often lack transparency, leading to widespread corruption and inefficiency. Since the state’s revenue does not depend on taxing its citizens, there is little accountability or scrutiny over how public funds are managed. This opacity fosters a culture of corruption and mismanagement, further entrenching autocratic rule.
  • Third, the reliance on oil revenues weakens civil society and democratic structures. The absence of taxation diminishes the citizens’ leverage over the government, as the social contract between the state and its people is undermined. This lack of civic engagement and political pluralism prevents effective opposition to autocratic regimes and stifles democratic development.

These characteristics contribute to several socio-economic problems in the region. High unemployment rates are prevalent because the oil economy often does not generate enough jobs for the growing population.

A notable aspect of the Cold War’s impact on MENA was the prevalence of proxy wars.

Additionally, the focus on oil exports leads to underdeveloped manufacturing sectors, making the economy less diverse and more vulnerable to fluctuations in global oil prices. The lack of democracy and transparency further exacerbates these issues, creating a cycle of instability and underdevelopment.

In short, the oil economy of MENA, characterized by rentier state dynamics, has far-reaching consequences for the region’s political and economic landscape. The reliance on oil revenues sustains autocratic regimes, fosters corruption, and impedes democratic progress, contributing to the persistent political instability in the region. Understanding these economic factors is essential for addressing the broader challenges facing MENA and promoting sustainable development and political reform.

Geopolitical Influences: The Cold War and Beyond

The geopolitical significance of the Middle East and North Africa (MENA) has been deeply shaped by the events of the Cold War and its aftermath. The region’s strategic value, driven by its vast oil reserves and crucial geographic location, drew substantial foreign intervention, notably from the United States and the Soviet Union. This involvement has left a lasting impact on the region’s political instability.

Water splashes against a foreground structure with a blurred oil rig visible in the distance, under a misty, overcast sky. This scene metaphorically captures the turbulence of political instability and its impact on offshore oil operations.
Churning waters against a backdrop of an offshore rig. Photo by Offshore Norge (CC BY-SA).

During the Cold War, MENA was a focal point for the intense rivalry between the US and the USSR. Each superpower aimed to extend its influence by supporting different regimes and movements within the region, often exacerbating existing conflicts. This rivalry turned MENA into a zone of heightened political and military tension. Military interventions by both superpowers were common, with the US and the USSR providing significant military aid to their respective allies. This support fueled prolonged conflicts, deepened political instability, and created a fragmented and volatile regional environment. For instance, the US backed Israel and certain Arab states, while the USSR supported other Arab nations and movements, perpetuating a cycle of violence and instability.

A notable aspect of the Cold War’s impact on MENA was the prevalence of proxy wars. Many regional conflicts were, in essence, extensions of the broader US-Soviet rivalry. The Afghan-Soviet War, which lasted from 1979 to 1989, is a prominent example, where the US supported Afghan mujahideen fighters against the Soviet-backed Afghan government. These proxy wars not only escalated local conflicts but also left enduring legacies of instability and violence that continue to affect the region today.

Following the Cold War, the geopolitical dynamics in MENA remained complex. The United States maintained a significant presence through ongoing military interventions and extensive arms sales, continuing to influence the region’s political landscape. The Gulf War in 1991, the invasion of Afghanistan in 2001, and the Iraq War in 2003 illustrate the persistent US involvement aimed at securing strategic interests and addressing perceived threats. These interventions often resulted in further destabilization, leaving a complex and fragile political environment.

The legacy of Cold War geopolitics continues to influence MENA’s current affairs. The region’s importance to global energy markets and its strategic position ensure that it remains a focal point for international power struggles. Addressing the persistent political instability in MENA requires a comprehensive understanding of these historical and geopolitical contexts. The Cold War era and subsequent geopolitical maneuvers have profoundly influenced MENA’s political dynamics.

The rivalry between the US and the USSR, characterized by military interventions and proxy wars, has left a legacy of instability. In the post-Cold War period, continued foreign involvement, particularly by the United States, underscores the region’s ongoing geopolitical significance. A nuanced understanding of these influences is crucial for fostering peace and stability in MENA.

Modern Geopolitical Dynamics

In recent years, the United States has adjusted its energy strategy, significantly reducing its dependence on Middle Eastern oil due to the shale oil and gas revolution. However, the region remains vital for arms exports, with the US continuing to supply weapons to key allies such as Israel and Saudi Arabia. These arms sales play a crucial role in the US maintaining its influence and strategic interests in the region.

Two fighters, one in a traditional headscarf, aiming a weapon, while another observes, positioned among rocky terrain. This image from Al Nusrah-Sham Falcons' position in Areha illustrates the intense moments of political instability in the region.
Al Nusrah-Sham Falcons positioned in Areha, Syria. Photo by David Axe (CC BY-NC).

Several modern conflicts illustrate the ongoing geopolitical struggles within MENA. The Syrian Civil War, which began in 2011, has drawn in various international actors, including the US and Russia, each supporting different factions. This conflict has exacerbated regional instability and highlighted the continuing strategic importance of the area.

The Yemeni Civil War, starting in 2015, is another critical conflict. It has involved significant foreign intervention, with Saudi Arabia leading a coalition against the Houthi rebels, who are believed to be backed by Iran. The war has resulted in a severe humanitarian crisis and further destabilized the region.

The Libyan Civil War, which reignited in 2014, also underscores the region’s persistent turmoil. Various factions, supported by different foreign powers, have vied for control, leading to ongoing instability and violence.

These conflicts highlight the enduring geopolitical struggles in MENA and the region’s strategic importance in global politics. Understanding the modern dynamics of these conflicts is essential for addressing the ongoing political instability and fostering a more stable and peaceful future for the region.

Conclusion: The Path Forward

The political instability in the Middle East and North Africa (MENA) is a complex and persistent issue, deeply rooted in a blend of historical, economic, and geopolitical factors. This instability not only impacts the region’s own development but also has broader implications for global security and economic stability. Addressing these multifaceted challenges requires a nuanced and comprehensive understanding of MENA’s unique context and a concerted effort to implement effective solutions.

One crucial step is to promote economic diversification. MENA’s heavy reliance on oil revenues has hindered the development of other economic sectors, leading to high unemployment rates and economic vulnerability. By investing in diverse industries such as technology, agriculture, and manufacturing, countries in the region can create more jobs, reduce economic dependency on oil, and foster sustainable growth.

Strengthening democratic institutions is another vital recommendation. Enhancing transparency and accountability in governance can help build public trust and reduce corruption. Establishing robust legal frameworks and supporting civil society organizations are essential steps toward creating more inclusive and participatory political systems. Such reforms can empower citizens, improve governance, and ultimately contribute to greater political stability.

International cooperation is also critical. Collaborative efforts to address regional conflicts and promote peace are necessary for long-term stability. Engaging in diplomatic dialogues, supporting peacebuilding initiatives, and providing humanitarian aid can help mitigate the effects of ongoing conflicts and prevent the outbreak of new ones. International organizations, regional bodies, and foreign governments must work together to support conflict resolution and sustainable development in MENA.

Understanding and addressing the root causes of political instability in MENA is essential for achieving long-term stability and prosperity. A holistic approach that encompasses economic diversification, the strengthening of democratic institutions, and international cooperation offers the best chance for fostering a more stable and peaceful future for the region. By tackling these issues comprehensively, we can hope to see a MENA that thrives politically, economically, and socially.

Adapted from an academic article for a wider audience, under license  CC BY 4.0

How to cite this article

Fukutomi, M. (2024, July 25). Political Instability and the Oil Economy in MENA. Politics and Rights Review. https://politicsrights.com/political-instability-oil-economy-in-mena/

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Professor of International Politics at Hitotsubashi University in Tokyo and Fellow of the Royal Geographical Society (FRGS). He holds dual Ph.Ds from Sciences Po Paris and Waseda University. His research focuses on international justice, security, humanitarian intervention, and geopolitics across multiple regions.