Economy of Bahrain Essay Example | Topics and Well Written Essays - 2000 words

Economy of Bahrain - Essay ExamplePetroleum production and processing are the main exports of Bahrain. The economic conditions of the country have depended on the price of oil. Bahrains infrastructure is highly developed. Many multinational firms have their head offices in the country. The country also exports petroleum products. The construction industry is also a major source of revenue for the government. Bahrain has a GDP per capita of $20,500 according to research conducted in 2005. It has a buy parity of $14.08 billion. Bahrain is a prosperous country by regional standards. It has pursued a neutral outside(prenominal) policy and is famous for its tolerance. It is the fastest growing economy in the Arab world. It has a large population of outside(a) expatriates.Despite an impressive standard of living, Bahrain suffers from poverty and poor living conditions. At least 20,000 families receive pecuniary assistance from Ministry of Labor and private organizations. Recent stud ies have found that the poverty income threshold is Bahraini dinar 209 per month. The poverty level for Bahrain is at least a quarter of the total population. At least 200,000 mountain suffer from poor living conditions. Many people do not have decent housing. more than than 30,000 families with low incomes have inadequate housing facilities. The average income has been increasing but the poverty rate has also increase.The The rise in poverty has been attributed to corruption, poor planning, low wages, influx of foreign workers and income inequalities. Further a minuscule group of wealthy and powerful people dominate the economy. These are considered as major obstacles to real reforms. large-mouthed areas of land have been taken over by powerful people. This has caused property prices to increase and put rattling(a) pressure on low income people. Poverty is clearly causing an adverse impact on society. Crime, come apart rate and increase in workers working in poor conditions a re direct results of poverty (Moore, 45).Income disseminationCompared with other regional countries, Bahrain has a low poverty rate. However most of the wealth is concentrated in the hands of the Sunni minority. The average daily expenditure is US$13.9 per person in Bahrain. This is compared with an average income of 12.8 dollars. The reason is that Bahrain has a negative savings level at the national level. Bahrains population does not suffer from poverty compared with regional countries.Research has shown that 12 percent of the population has an average income of less than five dollars per person. The expenditure required by a Bahraini to sustain basic expenses is an estimated US$42 per month. Majority of Bahrains population lives in apartments bit the remaining owns their houses. The average Bahraini also has ownership of electronic appliances and amenities which show that the majority of families bask an impressive standard of living (National Accountant, 34).Economic growth rateBahrains economic growth rate has increased in 2007. It has been bolstered by high oil prices and increase in non oil exports. The financial sector rest the main part of the economy. The government is also addressing issues like unemployment and rising crime. The economy has registered a 7.0% growth in 2007. The growth rate is expected to