The term Near East was coined in the 19th century when Westerners divided the “Orient” into three parts: the Near East, the Middle East, and the Far East. The Near East included the Ottoman Empire and the Balkans; the Middle East ranged between the Persian Gulf and Southeast Asia; and the Far East encompassed Asian countries facing the Pacific Ocean. However, in the early 20th century (as Europe geared up for World War II), the term Middle East began to be used by the British military to refer to both regions and it soon became the dominant term. (Though for all intents and purposes, both Middle East and Near East refer to the same region when used today.)
Today, the Middle East is considered the region spanning from Morocco (Northern Africa) to the Arabian Peninsula and Iran (Western Asia). (The acronym MENA—Middle East and North Africa—may also be used.) While Morocco, Tunisia, and Algeria seem like geographical outliers, their similar sentiment, religion, and policies have led them to be considered part of the region. Other countries, such as Afghanistan and Pakistan (in South Asia), are often lumped in with the Middle East because of current events, although they may not technically belong.
Both Near and Middle East are Eurocentric terms—it is Western English-speaking historians who named the region on the basis of its position relative to Europe. With recent trends to de-Westernize core education, the term Middle East seems a bit old-fashioned, but it's the best we have for now.
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