The Economic Consequences of ISIS in Middle East

Isis has therefore led to a vast economic effect, mostly negative, in the Middle East.
The worst affected country economically by the invasion of Isis was the northern part of Iraq. It is followed by the other countries such as Turkey, Syria and Lebanon. The economy of the Middle East greatly relies on oil that in Iraq. Other economic activities include tourism in Egypt, transport and real estate in Kuwait (Mc Carthy 2002, pg.59). All of these states have been affected economically by the Isis. Each has a different but almost similar story in relation to the labour force and fixed capital that they relied on for their economic growth. Lebanon, for instance, has a GDP per capita of about 16000 US dollars. Needless to say, the government needed to rebuild national infrastructure after the Lebanese Civil War and this has been detrimental in its economic growth. The Lebanese government had to become largely indebted to several states and this country is still largely underdeveloped.

The war in the Middle East has affected directly the labor force. Loss of lives has led to a significant decrease in the size and skills of the workforce. As mentioned earlier, labor is an essential ingredient in the theory of production. Labor includes physical and mental work that. Its reward is money. The element of pleasure derived in undertaking a certain task also factors in but it has to be characterized by payment for it to be considered as labor. Any work that is done by a person to earn some income is therefore considered economic.